Oryx Updates on Hawler Oilfield

No water production or pressure decline was observed during the test. Following the drill stem test the well was completed as a producer with the aid of an electrical submersible pump. During the completion test conducted, the well successfully flowed oil at a sustained rate of 6,500 bbl/d for a period of two hours.

Overall the liquid characteristics for both the drill stem test and the completion test were consistent with those observed at other Demir Dagh wells. The test results are not necessarily indicative of long-term performance or of ultimate recovery.

Observations during the drilling of the DD-11 well and data collected were largely consistent with expectations. A drill stem test was performed in a 13 metre interval in the Shiranish formation of the Cretaceous reservoir. During the test the well flowed fluids to the surface indicating a highly productive fracture system but the fluid was primarily water with slugs of oil.

Oryx Petroleum believes the presence of water was due to a flaw in the cementing of the well which enabled water to enter the testing interval from the reservoir below. Oryx Petroleum intends to drill a short sidetrack for the DD-11 well with the expectation that the well will be a future producer.

Facilities and Export Sales Infrastructure

Construction of an Early Production Facility (“EPF”) with gross (100%) nameplate processing capacity of 40,000 bbl/d continues and the installation of a 1.2 kilometre 16” connecting line from the Hawler production facilities to the KRI-Turkey pipeline is progressing. The construction of the EPF and the pipeline installation are expected to be completed in the first half of 2015.

(Source: Oryx)