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.