Oryx Updates on Hawler Oilfield

Oryx Petroleum resumed sales to local third party marketers in late December 2014 but sales have been interrupted on a periodic basis due to local market dynamics. As with previous local sales arrangements, the new contracts are short-term in duration and payment is received in advance per an agreed production schedule.

Realisations under these local sales agreements were approximately $43.60/bbl on approximately 36,400 barrels of net liftings in December 2014 and $39.96/bbl on approximately 61,100 barrels of net liftings in January 2015.

In mid-January the Kurdistan Regional Government established a new framework for determining local oil prices. Realisations per barrel for Demir Dagh crude oil under the new framework are currently in the low to mid $30s/bbl.

Productive Capacity

The Demir Dagh-2 (“DD-2”), Demir Dagh-4 (“DD-4”) and Demir Dagh-7 (“DD-7”) wells, all of which are tied into the Hawler production facilities, represent gross (100%) wellhead production capacity of approximately 15,000 bbl/d.

The Demir Dagh-3 (“DD-3”) well is expected to be tied into the Hawler production facilities in the coming weeks with the tie-in of the DD-10 well expected to be completed in Q1 2015. When the two new well tie-ins are complete, the five wells are expected to represent gross (100%) wellhead production capacity of approximately 25,000 bbl/d.