Oryx Petroleum Loses $423m in 2015

2016 Forecasted Capital Expenditures, Liquidity and Outlook: 

  • 2016 cash capital expenditure forecast of $62 million (versus $90 million budget). Almost all of expenditures will be dedicated to the Hawler license area in the Kurdistan Region of Iraq with the development of the Zey Gawra field the key focus
  • The Corporation expects cash on hand as of December 31, 2015, proceeds and funding from the Zeg Oil Strategic Investment, and cash receipts from net revenues in 2016 assuming a $35 per barrel average Brent crude price and export sales exclusively through the pipeline, to fund its forecasted cash expenditures into the second quarter of 2017
  • Assuming the successful completion of all planned activities, the Corporation expects gross (100%) oil production from the Hawler license area to exceed 10,000 bbl/d by the end of 2016

CEO’s Comment

Commenting today, Oryx Petroleum’s outgoing Chief Executive Officer, Michael Ebsary (pictured), stated:

“2015 was a challenging year for Oryx Petroleum. The precipitous decline in oil prices, the ongoing security and economic crisis in Northern Iraq and Syria as well as higher than expected water production at our Demir Dagh field limited our ability to achieve our objectives. But amidst these challenges we nevertheless achieved meaningful progress: we secured market access for our crude production via an agreement with a regional marketer in March; we completed our production facilities at the Demir Dagh field in September; and, most importantly, we developed a revised plan for development of the Cretaceous reservoir at Demir Dagh that still contains over 100 million barrels of gross (100%) proved plus probable oil reserves.

"We have also made significant progress in improving our financial position. We have reduced planned capital expenditures and staffing levels, restructured contingent consideration liabilities and, most recently, secured a cash investment and a proposed work commitment from Kurdistan-based Zeg Oil which means that our planned 2016 cash expenditures are fully funded.”

Also commenting today, Oryx Petroleum’s newly appointed Chief Executive Officer, Vance Querio, stated:

"I appreciate the confidence that the Board of Oryx Petroleum has expressed by appointing me to lead our organisation and thank Mike and others departing for their valuable service to Oryx Petroleum. In terms of operations, in late 2015 we resumed drilling operations at Demir Dagh and in early 2016 successfully re-completed the Demir Dagh-3 well in the Jurassic reservoir.

"With the restoration of the Demir Dagh-2 well to production and the addition of light oil production from the Jurassic reservoir at the Demir Dagh-3 well, we currently estimate that the Demir Dagh field has the capacity to deliver some 4,000 to 7,000 bbl/d of production. Importantly, we also recently completed and commissioned the tie-in of the Demir Dagh production facilities to the Kurdistan Export Pipeline to Turkey and agreed crude oil pricing terms with the government. Two days ago we commenced pipeline exports and we now expect that most of our oil production will be exported via pipeline.

"Our plans for the remainder of 2016 will focus on developing the Zey Gawra field with the proceeds of the Zeg Oil Strategic Investment. With the recompletion of existing wells and drilling of new wells at Zey Gawra we expect the productive capacity of our fields in the Hawler license area to exceed 10,000 bbl/d by the end of 2016.

"Overall, we believe we are well positioned for 2016 and beyond and are confident in and very much look forward to continuing the implementation of our 2016 plan.”

(Source: Oryx)

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