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Operations

We are rapidly building a diverse portfolio of petroleum license areas, strategically focused in Africa and the Middle East.

 

Our business strategy has been designed to ensure that we capitalise on our strengths and achieve our vision to become one of the world’s leading independent exploration, development and production oil companies.

 

Reserves and Resources Advisory

Oryx Petroleum’s reserves estimates have been prepared and evaluated by Netherland, Sewell & Associates, Inc., an independent oil and gas consulting firm, with effective dates as at December 31, 2016 and December 31, 2015, as indicated, in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities and the Canadian Oil and Gas Evaluation Handbook.


Proved oil reserves are those reserves which are most certain to be recovered. There is at least a 90% probability that the quantities actually recovered will equal or exceed the estimated proved oil reserves. Probable oil reserves are those additional reserves that are less certain to be recovered than proved oil reserves. There is at least a 50% probability that the quantities actually recovered will equal or exceed the sum of the estimated proved plus probable oil reserves. Volumes are based on commercially recoverable volumes within the life of the production sharing contract. See the Material Change Report filed by the Corporation on February 22, 2017 for more information regarding Oryx Petroleum’s reserves estimates.

 

Forward-Looking Information

 

Certain statements in this news release constitute “forward-looking information”, including reserves estimates and statements related to forecast capital expenditure for 2017, drilling plans, development plans and schedules and chance of success, future drilling of wells and the reservoirs to be targeted, approach to the development of the Hawler license area, expectations that all future production will be exported through the KRI-Turkey pipeline, expectations that future revenue from sales will be split in accordance with the production sharing contract applicable to the Hawler license area, ultimate recoverability of current and long-term assets, guidance regarding operating expenses on a per barrel basis, plans to process and interpret 3D seismic data from the AGC Central license area, possible commerciality of our projects, future expenditures and sources of financing for such expenditures, expectations that the forecast work program will enable the Corporation to achieve production and cash flow levels that will fund operations and allow the Corporation to meet its obligations, expectations that cash on hand as of December 31, 2016, expected proceeds from the anticipated shareholder subscription, and cash receipts from net revenues and export sales exclusively through the pipeline will allow the Corporation to fund forecasted cash expenditures and operating and administrative costs and to meet its obligations into the first half of 2018, the proposed shareholder subscription and balance sheet restructuring including expected conditions, pricing terms and closing date, the issuance of shares and pro forma ownership figures as a result of the vesting of Long Term Incentive Plan awards, exercise of outstanding warrants and the proposed shareholder subscription and balance sheet restructuring, estimates for the fair value of the contingent consideration arising from the acquisition of OP Hawler Kurdistan Limited in 2011, the expected timing for settlement of liabilities including the credit facility with AOG and the contingent consideration arising from the acquisition of OP Hawler Kurdistan Limited in 2011, and statements that contain words such as “may”, “will”, “could”, “should”, “anticipate”, “believe”, “intend”, “expect”, “plan”, “estimate”, “potentially”, “project”, or the negative of such expressions and statements relating to matters that are not historical fact, constitute forward-looking information within the meaning of applicable Canadian securities legislation.


Although Oryx Petroleum believes these statements to be reasonable, the assumptions upon which they are based may prove to be incorrect. For more information about these assumptions and risks facing the Corporation, refer to the Corporation’s annual information form dated March 24, 2016 available at www.sedar.com and the Corporation’s website at www.oryxpetroleum.com. Further, statements including forward-looking information in this news release are made as at the date they are given and, except as required by applicable law, Oryx Petroleum does not intend, and does not assume any obligation, to update any forward-looking information, whether as a result of new information, future events or otherwise. If the Corporation does update one or more statements containing forward-looking information, it is not obligated to, and no inference should be drawn that it will make additional updates with respect thereto or with respect to other forward-looking information. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.

Reserves and Resources Table

Summary Reserves and Resources

The following is a summary of NSAI’s evaluation as at December 31, 2016:

 

Oil Reserves and Resources and Future Net Revenue Summary Tables

Reserves and Resources (Working Interest)
LocationLicenseProved plus Probable (Working Interest)
Oil Reserves(1)   (MMbbl) ($ million)(6)
Kurdistan Region of Iraq Hawler    
Demir Dagh Cretaceous   65  
Demir Dagh Jurassic   5  
Zey Gawra Cretaceous   76  
Banan Cretaceous   56  
Total   202 1,014
  Gross(2) Oil (Working Interest)
  Unrisked Risked
Contingent Oil Resources- Development Pending (2, 3) (MMbbl) (MMbbl) ($ million)(6)
Kurdistan Region of Iraq Hawler      
Demir Dagh Cretaceous   16 14  
Banan Cretaceous   31 28  
Total   47 42 71
  Gross(2) Oil (Working Interest)
  Unrisked Risked(9)
Contingent Oil Resources- Development Unclarified(2, 4) (MMbbl) (MMbbl)
Kurdistan Region of Iraq Hawler 94 65
Congo (Brazzaville) Haute Mer A 6 1
Total Contingent Oil Resources-Development Unclarified(8) 100 66
  Gross(2) Oil (Working Interest)
  Unrisked Risked(10)
Prospective Oil Resources(3)   (MMbbl) (MMbbl)
Kurdistan Region of Iraq Hawler 111 5
Wasit Province Wasit - -
West Africa   742 18
Total Prospective Resources(8) 853 23
  1. The oil reserves data is based upon evaluations by NSAI, with effective dates as at December 31, 2015 and December 31, 2016, as indicated. Volumes are based on commercially recoverable volumes within the life of the production sharing contract.

  2. The contingent oil resources data is based upon evaluations by NSAI, and the classification of such resources as “contingent oil resources” by NSAI, with effective dates as at December 31, 2015 and December 31, 2016, as indicated. The figures shown are NSAI’s best estimate using deterministic methods. Once all contingencies have been successfully addressed, the probability that the quantities of contingent oil resources actually recovered will equal or exceed the estimated amounts is 50% for the best estimate. Contingent oil resources estimates are volumetric estimates prior to economic calculations.

  3. Classification of a project’s maturity as Development Pending indicates that there is a high chance of development (i.e., probability that a known accumulation will be commercially developed), where resolution of the final conditions for development is being actively pursued.

  4. Classification of a project’s maturity as Development Undefined indicates that evaluation of the project is incomplete and there is ongoing activity to resolve any risks or uncertainties regarding commercial development of the project. An economic evaluation has not been performed by NSAI on the contingent oil resources classified as Development Undefined.

  5. The prospective oil resources data is based upon evaluations by NSAI, and the classification of such resources as “prospective oil resources” by NSAI, with effective dates as at December 31, 2015 and December 31, 2016, as indicated. The figures shown are NSAI’s best estimate, using a combination of deterministic and probabilistic methods and are dependent on a petroleum discovery being made. If a discovery is made and development is undertaken, the probability that the recoverable volumes will equal or exceed the unrisked estimated amount is 50% for the best estimate. Prospective oil resources estimates are volumetric estimates prior to economic calculations.

  6. After-tax net present value of related future net revenue using forecast prices and costs assumed by NSAI and a 10% discount rate as at December 31, 2015 and December 31, 2016, as indicated. Gross proved plus probable oil reserves estimates and gross development pending best estimate (2C) contingent oil resource estimates used to calculate future net revenue are estimated based on economically recoverable volumes within the development/exploitation period specified in the production sharing contract, risk exploration contract or fiscal regime applicable to each license area. The estimated values disclosed do not represent fair market value.

  7. Use of the word “gross” to qualify a reference to reserves or resources means, in respect of such reserves or resources, the total reserves or resources prior to the deductions specified in the production sharing contract, risk exploration contract or fiscal regime applicable to each license area.

  8. Individual numbers provided may not add to total due to rounding.

  9. These are risked contingent resources that have been risked for chance of development.

  10. These are risked prospective resources that have been risked for both chance of discovery and chance of development. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development.

    The Corporation determined in 2016 to treat the Wasit license area as abandoned after failure to secure required governmental approvals during the five years since execution of the original contracts.

Property Summary Table
LocationLicenseArea (km2)Water Depth (metres)W.I. (%)Operator/Technical Partner
Iraq
Kurdistan Region
Hawler 788 Onshore 65.00
Nigeria OML141 1,295 0-30 38.67
AGC (Senegal / Guinea Bissau) AGC Shallow 1,700 0-100 80.00
AGC Central 3,150 100-1,500 80.00
Congo
(Brazzaville)
Haute Mer A 366 350-1,100 20.00
Haute Mer B 402 150-1,050 30.00
TOTAL   7,701      

 

Our current operations include: