Oryx Petroleum 3Q Results and 2016 Capital Budget

2016 Capital Expenditure Budget and Production Outlook:

  • 2016 cash capital expenditure budget of $90 million including approximately $83 million focused on development of the Demir Dagh field and appraisal of the Zey Gawra field in the Hawler license area in the Kurdistan Region of Iraq. Key components of the budget include:
    • Demir Dagh Drilling: $23 million for the drilling of 1 deviated development well, 1 horizontal development well, the re-completion of a previously drilled well for production and the re-completion of a previously drilled well for water disposal
    • Demir Dagh Facilities: $14 million including capital lease payments for the Hawler production facilities, enhanced water treatment and disposal facilities and flowlines related to new wells
    • Zey Gawra Drilling: $14 million for the drilling of 1 appraisal well and the sidetrack of the ZEG-1 discovery well. Both wells are intended to be completed for production
    • Zey Gawra Facilities: $17 million for the construction of a 9.4 km multiphase pipeline to tie the Zey Gawra wells back to the Hawler production facilities
    • Hawler – Other: $16 million for expenditures related to technical support, studies, local office and production sharing contract compliance
    • West Africa: $7 million for license maintenance, data analysis, and preparation for future data acquisition and drilling activity
  • Assuming full funding of expenditures related to the Corporation´s plans, the successful completion of all planned activities, and drilling success, the Corporation expects gross (100%) production from the Hawler license area to reach 12,000 to 15,000 bbl/d by the end of 2016

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