Oryx Updates on Hawler Oilfield

Appraisal / Development Drilling

The KS Discoverer-1 rig spudded the DD-9 well in early November 2014 and reached a total measured depth of 2,100 metres in early December 2014. The DD-9 well was drilled from the DD-3 well drillpad in the eastern portion of the Demir Dagh structure and its primary objective was to obtain additional Cretaceous reservoir data with building productive capacity a secondary objective.

Logging data and observations during drilling confirmed the presence of hydrocarbons and porosity similar to that observed at other Demir Dagh wells. Drill stem tests were performed in two intervals but sustained flow rates of oil were not achieved as the tests were unable to connect to the fracture network.

The EDC Romfor-22 rig drilled both the DD-10 and DD-11 wells from the same drillpad in the central part of the Demir Dagh field, with the primary objectives to increase productive capacity from the Cretaceous reservoir. The DD-10 well was spudded in late October 2014 and reached a total measured depth of 2,000 metres in mid-November. The DD-11 well was spudded in late November and reached a total measured depth of 2,300 metres in mid-January.

Observations during the drilling of the DD-10 well, including significant losses of drilling fluids, suggest the presence of a connected fracture network and logging data showed a high density of fracturing and the presence of hydrocarbons. A drill stem test was performed in a 76 metre interval in the Shiranish formation of the Cretaceous reservoir.

The drill stem test successfully flowed oil at an average rate of 3,400 bbl/d over a period of seven hours using a one inch choke size under natural flow conditions. The flow test on a one inch choke size was the third set of a multi-rate test which covered a total of 21 hours. The crude oil tested was measured on site between 21° and 22° API gravity. Quantities of associated natural gas encountered were approximately 180 scf/bbl and hydrogen sulfide at 0.02% in the natural gas phase.