- The Corporation expects cash on hand, the remaining undrawn portion of the AOG credit facility, and net revenues assuming a $55 per barrel average Brent price and continued export sales via truck, to fund its operations into the second quarter of 2016. However, $50-$75 million of additional capital is required to fund all budgeted cash expenditures in 2016
Commenting today, Oryx Petroleum's Chief Executive Officer, Michael Ebsary (pictured), stated:
"During the third quarter of 2015, we completed our Hawler production facilities at the Demir Dagh field and, importantly, we re-formulated our overall approach for the Hawler license area.
"Our revised approach is reflected in our plans for the remainder of 2015 and our 2016 capital budget and includes use of new well designs in the Demir Dagh Cretaceous reservoir while also commencing the development and appraisal of lighter oil reserves in both the Demir Dagh Jurassic and the Zey Gawra Cretaceous reservoirs. We have a rig on its way to Hawler and will begin implementing our plan in the coming weeks.
"Our 2016 capital budget has also been developed in the context of financial constraints. We require additional capital to fund our 2016 plans and are in advanced discussions with several parties. We are confident such funding will be secured in the coming months.
"The environment for monetizing crude production in the Kurdistan Region also continues to improve. Our liftings and related cash payments under the crude sales agreement with a regional marketer continue. Although we expect this to be our primary sales channel for Hawler crude oil in the near term, we have begun to see renewed interest from local marketers for our production now that more oil is being exported from the region via pipeline.
"We are also encouraged by the commencement of regular payments to other producers exporting via pipeline and are confident we will have access to the export pipeline as we increase production levels.
"Overall, we remain positive on the inherent value in our asset base and are confident in and very much look forward to implementing our 2016 plan."