$100m New Funding for Oryx Petroleum

Oryx Petroleum has announced an update on its 2015 capital expenditure plans and funding.

Highlights:

  • A 2015 capital expenditure forecast of $140 million
    • a 60% reduction against the budget of $350 million set in November 2014
    • includes a 30% reduction in general and administrative costs
  • Capital expenditures to be focused on production activities in the Hawler license area in the Kurdistan Region of Iraq
    • development drilling at Demir Dagh
    • completion of the Demir Dagh early production facilities (“EPF”) and tie-ins to the expanded Kurdistan Region-Turkey international export pipeline.
  • Target production guidance of 35,000 to 45,000 bbl/d by the end of 2015 remains unchanged
  • A commitment by The Addax & Oryx Group P.L.C. (“AOG”) to provide up to $100 million in the form of an unsecured credit facility.
    • compensation includes interest of 10.5% per annum and receipt of warrants to purchase up to 12 million shares of Oryx Petroleum

CEO’s Comment

Oryx Petroleum’s Chief Executive Officer, Michael Ebsary (pictured), stated:

We continue to increase our financial flexibility in light of lower international oil prices and the disruptions to market access and payment in the Kurdistan Region of Iraq (“KRI”). Accordingly, we have moderated our capital expenditure plans to focus on our core development assets to enable us to achieve our targeted near term production growth. We are also reducing costs throughout the organization in order to increase our overall efficiency.

We have also obtained an additional funding commitment from our major shareholder which significantly enhances our liquidity position, while maintaining financial and operational flexibility to react quickly to changes in our operating environment.

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