Kurdistan Region - Hawler
- Oryx Petroleum has a 65% participating and working interest in, and is the operator of, the Hawler license area.
- The Hawler license area has four discoveries on four structures which are estimated by Netherland, Sewell & Associates, Inc. (“NSAI”) as of December 31, 2014 to contain a total of 271 MMbbl of gross (working interest) proved plus probable oil reserves in a report dated February 16, 2015. NSAI updated its estimate as of December 31, 2014 to 215 MMbbl of gross (working interest) proved plus probable oil reserves in a sensitivity letter dated September 30, 2015. The sensitivity letter assessed the impact of early water production experienced in wells in the Demir Dagh field and lower forecasted crude oil prices on Oryx Petroleum’s proved plus probable oil reserves. NSAI’s update does not represent a current or complete reserves evaluation.
- In 2014, wells were spudded and tested to appraise the reservoirs, commence production (June 2014) and increase wellhead production capacity. A 3D seismic data acquisition campaign covering a portion of the license area was also completed in 2014 to provide additional information to further refine development plans.
- In March 2015, Oryx Petroleum commenced selling crude oil produced in the Hawler licence area to a regional marketer. Under this arrangement Oryx Petroleum receives its share of sales proceeds directly from the third party marketer.
- In September 2015, Oryx Petroleum commissioned the Hawler production facilities at Demir Dagh with initial gross (100%) oil production capacity of 40,000 bbl/d. These facilities replaced the 20,000 bbl/d temporary production facilities put in place in 2014.
- In Q3 2015 gross (100%) production from the Hawler license area averaged 2,800 bbl/d.
- Drilling activity at the Hawler license area is planned to resume late 2015.
- Wasit is a large, underexplored province in east central Iraq in proximity to the super-giant East Baghdad field.
- Oryx Petroleum has a 61% participating interest (49% working interest assuming the Wasit Provincial Government exercises a 20% back-in right) through a jointly owned company with rights for oil exploration operated by Oryx Petroleum.
- The five principal leads identified by Oryx Petroleum to date in the Wasit province are estimated by Netherland, Sewell & Associates, Inc. as of December 31, 2014 to contain 404 MMbbl of best estimate unrisked gross (working interest) prospective oil resources (risked: 78 MMbbl) within large, low relief structures and folded anticlines. Oryx Petroleum believes these structures are similar to the Zagros Fold Belt, which is one of the primary sources of oil currently produced in neighbouring Iran.
- Given continuing political and economic challenges in Iraq, Oryx Petroleum does not expect to commence such significant activity in the near-term.