Tag Archive | "Oryx Petroleum"

Oryx Petroleum “Largely Unaffected” by Unrest


By John Lee.

Oryx Petroleum Corporation announced a production and drilling update on Monday for the Demir Dagh field in the Hawler license area in the Kurdistan Region of Iraq, including test results for the Demir Dagh-6 appraisal well (“DD-6”).

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

Highlights:

  • Gross (100%) production at the Demir Dagh field is currently approximately 4,000 bbl/d
    • Liftings/sales and payments are proceeding in accordance with the agreement with a third party marketer
  • Two cased-hole drill stem tests (“DSTs”) were successfully conducted at DD-6 in the Cretaceous reservoirs
    • Maximum sustained natural flow rate of approximately 700 bbl/d of oil using a 16/64” choke
    • The well demonstrated high productivity but natural gas encountered at the top of the perforation constrained use of choke sizes and flow rates
    • Similar crude qualities were encountered as tested in the Cretaceous reservoirs at other Demir Dagh wells
  • 2014 Demir Dagh Appraisal and Development
    • Demir Dagh-7 well (“DD-7”) is to be spudded in the coming weeks and is expected to reach a total depth in Q3 2014
    • Three additional development wells are to be drilled in 2014 as deviated wells to Lower Cretaceous reservoirs
    • Preparation work for the acquisition of 440 square kilometres of 3D seismic data over the Demir Dagh, Banan and Zey Gawra discoveries commenced in June 2014
  • Operations remain largely unaffected by the security situation in northern Iraq (outside of the Kurdistan Region)

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Oryx Petroleum First Sales from Demir Dagh


By John Lee.

Oryx Petroleum Corporation Limited has announced that it has sold its first offtakes of crude oil into the domestic market from the Demir Dagh field in the Hawler license area in the Kurdistan Region of Iraq.

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

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

“We are delighted to announce that we have completed our first sales from the Demir Dagh field. This is a critical milestone in Oryx Petroleum’s evolution to becoming a full-cycle exploration, development and production company. We now look forward to increasing production, revenue and cash flow as we continue to develop Demir Dagh and our other Kurdistan discoveries.”

The Corporation recorded its first lifting of crude oil on Friday June 20 from the Demir Dagh field. Through June 22, 2014 the Corporation has recorded liftings totaling approximately 3,300 barrels of crude oil. The liftings are pursuant to a short term agreement to sell crude oil to a third party marketer designated by the Ministry of Natural Resources (“MNR”) of the Kurdistan Regional Government.

The Demir Dagh crude oil has been sold at a price of just under $60 per barrel (as determined by the MNR) reflecting local market pricing dynamics and the medium sweet quality of the crude oil.

In accordance with the crude sales agreement, Oryx Petroleum is paid in advance on a regular basis throughout the term of the agreement for scheduled liftings. Liftings are continuing and are scheduled to ramp-up over the term of the agreement. The Corporation expects that the agreement will be renewed at the end of its term, consistent with domestic sales practices in the Kurdistan Region of Iraq.

(Source: Oryx)

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Oryx Petroleum Hits Oil at Banan-2


By John Lee.

Oryx Petroleum has announced that the Banan-2 appraisal well (“BAN-2”) has been spudded in the Hawler license area in the Kurdistan Region of Iraq.

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

Henry Legarre (pictured), Oryx Petroleum’s Chief Operating Officer, stated:

We are very excited to have successfully accelerated the spudding of the BAN-2 appraisal well. This is one of the most important wells we will drill in 2014 as it allows us to assess the multi-hundred million barrel potential up-dip of the Banan-1 exploration well that was successfully tested earlier this year.

“The drilling of BAN-2 and the acquisition of 3D seismic in the next few months should provide us with a better understanding of the full potential of the Banan discovery.

The Sakson Hilong 10 rig spudded the BAN-2 appraisal well approximately 5 kilometres to the North-West of the Banan-1 exploration well (“BAN-1”). As announced on March 12, 2014 oil was successfully flowed in two cased-hole drill stem tests on the BAN-1 exploration well, one in each of the Cretaceous (Shiranish and top Kometan formations) and the Lower Jurassic (Butmah formation). Additionally, the drilling and test results showed the development of additional reservoirs that will be further appraised and tested as part of the appraisal program for Banan.

Prior to the start of the BAN-1 testing program, Netherland, Sewell & Associates, Inc. (“NSAI”) estimated as of December 31, 2013 that the Banan discovery contains low, best and high estimates unrisked gross (100%) contingent oil resources of 5, 40 and 440 MMbbl, respectively, all in the Cretaceous formations.

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Oryx Petroleum Makes Oil Discovery


By John Lee.

Oryx Petroleum has announced two positive updates on its operations in the Hawler license area in Iraqi Kurdistan, in which the company has a 65 perccent participating and working interest:

  • Testing of the DD-4 appraisal well on the Demir Dagh field  achieved expected flow rates and confirmed reservoir and fluid characteristics. Henry Legarre (pictured), Oryx Petroleum’s Chief Operating Officer, stated:

    We are pleased with the successful testing of the DD-4 appraisal well, the first appraisal well to complete drilling and testing on the Demir Dagh field. Overall, the results confirm those of the Demir Dagh discovery with good flow rates, similar fluid characteristics and reservoir properties as observed in Demir Dagh-2.

  • Testing of the BAN-1 exploration well has confirmed the Corporation’s fourth consecutive oil discovery in the Hawler license area. Henry Legarre commented:

    “We are very pleased with the drilling and test results of the BAN-1 exploration well. We successfully flowed oil from the well´s primary targets in the Cretaceous and Lower Jurassic reservoirs.

    “In addition, we encountered and flowed hydrocarbons to the surface in the Triassic Kurra Chine formation and established the presence of hydrocarbons in the Tertiary Pila Spi formation. Given the down-dip location of the well, these results underline the significant potential that exists up-dip of the BAN-1 well. 

    “We are now accelerating plans to drill an appraisal well targeting the crest of the Banan structure in order to better understand the full potential of this discovery.”

(Source: Oryx Petroleum)

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Oryx Declares Demir Dagh “Commercial”


Oryx Petroleum has announced that it has determined that the Demir Dagh 2 well discovery is a Commercial Discovery pursuant to the terms of the Erbil Production Sharing Contract.

Oryx Petroleum is currently undertaking an extensive appraisal program in relation to the full Demir Dagh field, and will continue to undertake such appraisal activities through 2014, however, the Corporation has elected to declare commerciality at this time as it is proceeding to install and operate an early production facility on the Demir Dagh field, with production intended to commence in the second quarter of 2014.

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

We are very proud to declare commerciality for Demir Dagh and thus achieve another key milestone on our march towards first production and appraisal and development of the field.

“To declare commerciality for the field less than a year after discovery is a major achievement for our company and our partners in the Erbil License Area.

“We expect the rapid development of Demir Dagh to provide significant benefit to our stakeholders and to the people of Iraq.

(Source: Oryx Petroleum)

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Oryx Updates on Kurdistan Operations


 By John Lee.

Oryx Petroleum has announced an update on its drilling activities at Banan and Demir Dagh in the Hawler license area in the Kurdistan Region of Iraq.

The company the operator and has a 65 percent participating and working interest in the Hawler license area.

Commenting today, Henry Legarre (pictured), Oryx Petroleum’s Chief Operating Officer, stated:

Our exploration and appraisal activities in the Hawler license area continue to progress. We have completed drilling the Banan exploration well targeting one of the largest prospects in our portfolio. Hydrocarbons were encountered in the Cretaceous, Upper and Lower Jurassic and Triassic and we are now commencing a testing program.

“We have successfully re-completed the Demir Dagh-2 well and we are making excellent progress with the Demir Dagh-3 and Demir Dagh-4 appraisal wells. Observations during drilling of all wells on the Demir Dagh structure continue to be encouraging.

The full report can be downloaded here.

(Source: Oryx)

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Oryx Petroleum Strikes Oil at Zey Gawra


By John Lee.

Oryx Petroleum today announced a successful oil discovery at Zey Gawra in the Hawler license area.

The ZEG-1 well was flow tested at an average rate of 4,800 barrels per day of light crude oil from an 81 metre column. A Notice of Discovery has been filed by the Corporation with the Kurdistan Region Government. Oryx Petroleum is the operator and has a 65% participating and working interest in the Hawler license area.

Commenting today, Henry Legarre (pictured), Oryx Petroleum’s Chief Operating Officer, stated:

Hawler is proving to be a prolific license area. We are very pleased to have made our third consecutive oil discovery there this year, achieving excellent flow rates of high quality crude from the Cretaceous.

“More work needs to be done to confirm the size of the discovery but we believe it will be substantially larger than our pre-drill estimates. Importantly, the reservoir characteristics in the Cretaceous, notably the matrix porosity, confirm our experience with the other wells we have drilled in the Hawler license area.

“We are already planning our first Zey Gawra appraisal well and we are confident that the discovery will be established as commercial.

Full details can be found here.

(Source: Oryx Petroleum)

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Oryx Plots Path to Oil Production


By John Lee.

As part of its results for Q3 2013, Oryx Petroleum gave the following update on its Iraqi operations:

Demir Dagh Appraisal – The Corporation has significantly progressed its appraisal plan for the Demir Dagh discovery. Oryx Petroleum has a 65% participating and working interest in the Hawler license area. Key highlights include the following:

Early Production Facility (“EPF”) and related infrastructure – The design of the previously announced EPF leased from Expro is complete with the main separation trains under refurbishment and fabrication of storage tanks in progress. The facility is designed to have multiple trains with the ability to process light, heavy, sweet and sour crude types.

The acquisition of land needed for the EPF is complete and civil works to prepare the site are well underway. Equipment has been ordered and is being mobilized to site for both for the planned truck loading facility and the tie-in to the Khurmala-Faysh Khabur pipeline.

Appraisal Drilling – With the completion of the AAS-1 exploration well initial testing, the Sakson Hilong 10 rig has moved to Demir Dagh and will spud the DD-3 well approximately 3 km to the South-East of DD-2. DD-3 is expected to spud in the second half of November with a targeted total depth of 4,135 metres.

The well is intended to appraise the Cretaceous, Jurassic and Triassic age reservoirs that were discovered with DD-2. In particular, DD-3 will appraise formations in the Jurassic and Triassic where inconclusive results of DD-2 allowed for the booking of only prospective or contingent resources. The Corporation expects DD-3 to reach total depth and re-test in Q1 2014.

Another appraisal well (DD-4) is expected to be spudded in late Q4 2013 after the testing of the ZEG-1 exploration well and re-completion of the DD-2 well. DD-4 is expected to be drilled to a total depth of 2,130 metres, approximately 1 km to the South-West and across a major fault of DD-2 in order to appraise the flank of the Cretaceous reservoir and be completed as a producing well.

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