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").


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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