Tag Archive | "Oryx Petroleum"

$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.

Posted in Investment, Oil & GasComments (8)

Oryx Updates on Hawler Oilfield


By John Lee.

Oryx Petroleum Corporation has announced an update regarding production, sales and development activities for the Hawler license area in the Kurdistan Region of Iraq (“KRI”).

Highlights:

  • Gross (100%) oil production:
    • - December 2014 average of 3,900 bbl/d with a daily peak of approximately 8,500 bbl
    • - January 2015 average of 3,100 bbl/d with a daily peak of approximately 9,800 bbl
    • - Production levels constrained by market access
  • Sales to the local market have been achieved with periodic interruptions since late December 2014; additionally, trial truck deliveries to the KRI-Turkey pipeline were completed in late December 2014
  • Wells currently tied into the Hawler production facilities represent wellhead production capacity of 15,000 bbl/d with tie-ins of other successfully tested wells expected to increase wellhead production capacity to 25,000 bbl/d by early Q2 2015
  • Appraisal / Development well testing:
    • - Demir Dagh-10 (“DD-10”) well: a completion test successfully flowed oil from the Cretaceous reservoir at a sustained rate of 6,500 bbl/d for two hours following a successful multi-rate drill stem test over a period of 21 hours
    • - Demir Dagh-9 (“DD-9”) well: the DD-9 well met its primary objective of obtaining reservoir data critical to delineating the field but did not achieve sustained flow rates of oil during tests in the Cretaceous reservoir
    • - Demir Dagh-11 (“DD-11”) well: data important to delineating the field was obtained but a sustained flow of oil was not achieved during a test in the Cretaceous reservoir; water entered the reservoir during the test indicating a problem with the cementing in the well; Oryx Petroleum intends to drill a short sidetrack for the DD-11 well with the expectation that the well will be a producer
  • Construction of the Hawler Early Production Facility and works to directly tie into the KRI–Turkey pipeline continue with completion of both expected in the first half of 2015

Posted in Oil & GasComments (7)

Oryx Petroleum Updates on Demir Dagh


Oryx Petroleum Corporation has announced an update regarding development, production and sales for the Demir Dagh field in the Kurdistan Region of Iraq (“KRI”).

Highlights:

The Demir Dagh-7 well will be tied into the Demir Dagh production facilities in the coming weeks, taking total Demir Dagh gross (100%) productive capacity to more than 15,000 bbl/d by the end of 2014; the Demir Dagh-3 well will be tied into production facilities in early 2015 with the Demir Dagh-8 through 11 wells to potentially follow subject to successful drilling and testing

Drilling of the Demir Dagh-9 well has recently been completed reaching total measured depth of 2,100 metres; Testing is expected to be completed before year end 2014

Drilling of the Demir Dagh-10 well has been completed; the Demir Dagh-11 well has been spudded and both wells are to be tested upon completion of the Demir Dagh-11 well in late 2014/early 2015

The Group and its partners are in advanced stages of discussions with the Ministry of Natural Resources of the KRI regarding the field development plan for the Hawler license area and are close to agreement on a plan that emphasises rapid production growth

Works to directly tie into the KRI–Turkey pipeline are on track with completion expected in early 2015

Trial deliveries to the Ministry of Natural Resources of the KRI have commenced by truck from Demir Dagh to the Khurmala entry point of the KRI-Turkey pipeline

Gross (100%) production of oil averaged 4,400 bbl/d for the month of October 2014 and the highest daily production achieved was just under 7,000 bbl/d. Since late October, as a result of local market dynamics, there have been no local sales and production at the Demir Dagh field has been shut-in for most of this period

Commenting today, Oryx Petroleum´s Chief Executive Officer, Michael Ebsary (pictured), stated:

“The excellent progress with our development drilling and facilities construction at the Demir Dagh field continues and we remain on track to have the productive capacity to meet expectations for 2014 and 2015.

“Meanwhile, the market for crude oil produced in the Kurdistan Region of Iraq is evolving rapidly. Recent progress in discussions between the governments in Baghdad and Erbil with regards to exporting crude oil from the Kurdistan Region is very encouraging.

“Such progress has many positive implications for sales of crude oil produced in the Kurdistan Region to both export and domestic markets as well as for the fiscal stability and security of the Kurdistan Region.”

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Oryx Updates on Demir Dagh


By John Lee.

Oryx Petroleum has announced an appraisal drilling update for the Demir Dagh field in the Hawler license area in the Kurdistan Region of Iraq, including test results for the Demir Dagh-7 and Demir Dagh-8 appraisal wells (“DD-7” and “DD-8”, respectively).

Oryx Petroleum is the operator and has a 65% participating and working interest in the Hawler license area.

Highlights:

Demir Dagh-7 Test Results

  • Testing of an interval in the Shiranish and Kometan formations in the Cretaceous reservoir
  • Achieved a maximum sustained natural flow rate of approximately 3,300 bbls/d of oil over a period of 6 hours restricted by a 48/64” choke
  • Demonstrated high productivity comparable to the Demir Dagh-2 (“DD-2”) well with expected production rate to exceed 5,000 bbls/d once the well is completed with an electrical submersible pump (“ESP”)
  • Encountered similar crude qualities as tested in other wells in the Cretaceous reservoir in the Demir Dagh field (20 to 22° API)

Demir Dagh-8 Test Results

  • Observations and data collected during drilling were similar to the DD-7 well but mechanical failure in isolating the perforation interval resulted in an unsuccessful test
  • A short sidetrack well is planned to be drilled and the Cretaceous reservoir re-tested in late Q4 2014 or early 2015

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Petrel Resources Updates on Prospects


By John Lee.

As part of its Interim Statement, Petrel Resources has given the following update on its Iraq operations:

The political uncertainty and civil strife in the Middle East makes it difficult to be optimistic about our activities in Iraq. But progress has been made. A new government has been formed. The Minister of Oil has been quoted as being in favour of more regional autonomy for the provinces.

“Our partners, the Amira Group and Oryx, are awaiting approvals from the governor of the Wasit Province to undertake seismic followed by drilling. The prospects in Wasit are extremely good. Petrel has a 5% fully carried interest through exploration.

“On spudding of an exploration well a tranche of shares in Petrel will be issued to the Amira Group. If a commercial discovery is made a further tranche of shares will be issued.

(Source: Petrel Resources)

Posted in Oil & GasComments (1)

Oryx Resumes Kurdistan Operations


By John Lee.

Oryx Petroleum has announced an update for its operations in the Hawler license area of the Kurdistan Region of Iraq.

Commenting today, Oryx Petroleum´s Chief Executive Officer, Michael Ebsary (pictured), stated:

“We are very pleased that tangible improvements to the security environment in the Kurdistan Region have enabled us to resume all activities at our core asset, the Demir Dagh field. The resumption of production at higher levels after only a short interruption is very positive and, while the interruption will result in delays in our development schedule, we hope to minimise those and continue our rapid ramp-up in production.

“Appraisal activities at our Ain Al Safra and Banan discoveries remain suspended pending further improvement in the security environment in the westernmost portions of the Hawler license area. Preparations for drilling at Zey Gawra continue but timing of actual drilling is not yet certain.

“We are encouraged by the response of the Kurdistan Region and Iraq authorities, together with the support of the international community, to the conflict in northern Iraq. We continue to closely monitor the situation in close co-ordination with authorities in the Kurdistan Region and continue to take measures needed to ensure the safety of our personnel and operations.”

Demir Dagh

Oryx Petroleum recently resumed crude oil production and sales into the domestic market at the Demir Dagh field in the Hawler license area at rates in excess of those prior to the temporary halt in August. Production and sales have averaged approximately 4,300 barrels per day over the past 10 days with daily volumes achieved in recent days of over 5,000 barrels. Payments for sales have also resumed.

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Oryx and Others Remove Staff from Iraq


By Patrick M Schmidt.

As the United States begun strikes against Islamic State of Iraq and the Levant (ISIL) militants, Canadian oil firm, Oryx, began evacuations of staff from their facilities in the Kurdistan region.

The company announced that portion of its Demir Dagh oil field had been shut down. Drilling and other operations continued at reduced levels by contract staff. The field produces approximately 3,000 to 4,000 barrels of oil per day.

Operations at Ain Al Safra and Banan oilfields have been completely suspended until further notice.

Other firms evacuated staff from the region including Chevron Corporation and Exxon Mobil.

(Source: Reuters)

Posted in Oil & Gas, SecurityComments Off

Teeling Updates on Petrel Resources


By John Lee.

As part of his statement to the AGM of Petrel Resources, Executive Chairman John Teeling made the following comment on the company’s operations in Iraq:

Petrel has a 5% full free carry on the interests held by Oryx in the Wasit province of Iraq.

“This is held via a 20% shareholding in Amira, which was farmed out to Oryx, a listed Canadian company whose principals have been successful in Kurdistan.

“The Wasit province is stable but no exploration is being conducted at present.”

The company’s shares have more than halved since February.

(Source: Petrel Resources, Yahoo!)

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