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Operations

We have built a portfolio of petroleum license areas, strategically focused in established hydrocarbon regions 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 date as at December 31, 2017, 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 15, 2018 for more information regarding Oryx Petroleum’s reserves estimates.

 

Forward-Looking Information

 

Certain statements in this news release constitute “forward-looking information”, including statements related to estimates of oil reserves and resources volumes, forecast work program and capital expenditure for 2018, drilling and well workover plans, development plans and schedules and chance of success, future drilling of wells and the reservoirs to be targeted, plans for drilling in the Banan field to commence in the first half of 2018, expectations that the ZEG-2 well will be completed as a producer in the coming weeks, ultimate recoverability of current and long-term assets, expected completion of interpretation of 3D seismic data from the AGC Central license area in the coming months and plans to identify and map prospects in the AGC Central license area and prepare for drilling, expected entry into the first renewal of the exploration period under the AGC Central PSC in September 2018, possible commerciality of our projects, plateau production rates, future expenditures and sources of financing for such expenditures, expectations that cash on hand as of December 31, 2017, and cash receipts from net revenues will allow the Corporation to fund forecasted cash expenditures and operating and administrative costs and to meet its obligations through the end of 2018, expected closing of a transaction to transfer the Corporation’s interests in the Haute Mer B license area in Q2 2018, expected transfer of interests in the Haute Mer A license area for no consideration in the coming months, the issuance of shares as a result of the vesting of Long Term Incentive Plan awards and in consideration of interest under the Loan Agreement with AOG, future requirements for additional funding, 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 23, 2017 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, 2017:

 

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   56  
Demir Dagh Jurassic   3  
Zey Gawra Cretaceous   22  
Banan Cretaceous   42  
Total   122 704
  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  
Zey Gawra Tertiary   7 6  
Total   54 47 106
  Gross(2) Oil (Working Interest)
  Unrisked Risked(9)
Contingent Oil Resources- Development Unclarified(2, 4) (MMbbl) (MMbbl)
Kurdistan Region of Iraq Hawler 94 65
Total Contingent Oil Resources-Development Unclarified(8) 94 65
  Gross(2) Oil (Working Interest)
  Unrisked Risked(10)
Prospective Oil Resources(3)   (MMbbl) (MMbbl)
Kurdistan Region of Iraq Hawler 105 4
AGC Central   3,450 392
Haute Mer B   195 2
Total Prospective Resources(8) 3,750 398
  1. The oil reserves data is based upon evaluations by NSAI, with effective date as at December 31, 2017, 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 date as at December  31, 2017. 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 date as at December 31, 2017. 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, 2016 and December 31, 2017, 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 agreed in early 2018 to sell its interest in the Haute Mer B license for cash consideration. Transaction closing is pending.

Property Summary Table
LocationLicenseArea (km2)Water Depth (metres)W.I. (%)Operator/Technical Partner
Iraq
Kurdistan Region
Hawler 788 Onshore 65.00
AGC (Senegal / Guinea Bissau) AGC Central 3,150 100-1,500 80.00
Congo
(Brazzaville)
Haute Mer B(1) 402 150-1,050 30.00
TOTAL   4,340      

 (1) Sale of Interest for cash consideration pending

 

Our current operations include: