The Zeg Oil Investment
The key elements of the equity investment by Zeg Oil are as follows:
- Zeg Oil acquired ownership and control of 75,683,994 common shares of Oryx Petroleum by private placement, issued from treasury and representing, on a non-diluted basis, approximately 38% of the issued and outstanding common shares of Oryx Petroleum, for total cash consideration of $30 million based on an Oryx Petroleum share price of C$0.55 per common share and a Canadian Dollar-United States Dollar exchange rate of 0.7207 (the "Zeg Oil Investment").
- The $30 million Zeg Oil Investment is to be used by Oryx Petroleum to fund its share of the costs for appraisal and early production of the Zey Gawra field in the Hawler license area in the Kurdistan Region of Iraq (the "Zey Gawra Project") and to fund working capital needs.
- The Zeg Oil Investment closed today, before markets opened with all funds received. As a result of the Zeg Investment, on the date of this press release, Zeg Oil owns and controls 75,683,994 common shares of Oryx Petroleum, representing approximately 38% of the common shares.
- The common shares are being issued pursuant to the exemption in Section 2.10 of National Instrument 45-106 – Prospectus Exemptions on the basis that: (i) Zeg Oil is not an individual; (ii) Zeg Oil is purchasing the common shares as principal; (iii) the cash purchase price for the common shares was greater than C$150,000 and was paid at the time of distribution; and (iv) only securities of Oryx Petroleum are being distributed to Zeg Oil pursuant to the Zeg Investment.
The Zey Gawra Contracts
The Zey Gawra Contracts are expected to have an aggregate value of $40 million and are expected to include the following work components:
- New, dedicated production facilities in the Zey Gawra area with a tie-back pipeline from the Zey Gawra field, all of which will be owned by the Hawler Area PSC. Most of the long-lead equipment is already available, and the system is expected to be operational in the second half of 2016. Importantly, the new facilities are expected to be connected to existing facilities at Khurmala where associated natural gas produced from the Zey Gawra field will be processed and then delivered to end users. Previous plans assumed natural gas produced at Zey Gawra would be processed at Demir Dagh potentially requiring sizable capital expenditures.
- Sidetrack drilling of the Zey Gawra-1 discovery well and re-entry and re-completion of the ZAB-1 well, being the original discovery well on the Zey Gawra field. Both wells are expected to be completed for production and on-stream during the second half of 2016. Subject to the results of the first two wells, one or more new wells may be drilled at the Zey Gawra field during the second half of 2016.
Oryx Petroleum´s share of total consideration is expected to include the issuance of 50,455,996 common shares of Oryx Petroleum by private placement with value of $20 million based on an Oryx Petroleum share price of C$0.55 per common share and a Canadian Dollar-United States Dollar exchange rate of 0.7207.
Deprecated: related_posts is deprecated since version 5.12.0! Use yarpp_related instead. in /srv/users/ibn/apps/ibn/public/wp-includes/functions.php on line 5211