Oryx Updates on Hawler Oilfield

CEO´s Comment

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

“With our recent drilling results we now have wellhead production capacity in Hawler of some 25,000 bbl/d and we expect to complete a 40,000 bbl/d processing facility in the coming months. Our ramp-up in production continues to be closely tied to our access to domestic and international sales markets.

"We are pleased to have resumed local sales but the domestic sales market in the Kurdistan Region has not yet fully normalised from disruptions first experienced in 2014. We expect to be able to connect to the international export pipeline in Q2 2015.

"Like other industry participants, we are in the process of revisiting our 2015 capital expenditure plans in light of the macro environment for oil producers and uncertainty specific to the Kurdistan Region of Iraq. We expect to release our revised capital expenditure forecast in the coming weeks.”

Production and Sales

Gross (100%) oil production from Demir Dagh averaged approximately 3,900 bbl/d and 3,100 bbl/d, respectively, for the months of December 2014 and January 2015. Production reached a daily high of approximately 9,800 bbl/d in early January.

During December 2014, Oryx Petroleum completed trial deliveries of crude oil by truck from Demir Dagh to the Khurmala entry point of the KRI-Turkey pipeline. Liftings averaged approximately 3,300 bbl/d over three weeks with a maximum single day lifting of 9,000 barrels.

The trial deliveries successfully established the physical ability to export commingled crude from Demir Dagh through the international export pipeline. Oryx Petroleum has not recognized revenue and not received any payment for the trial deliveries.