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CEO's Message

“2018 was a good year for Oryx Petroleum. During the year we substantially increased production from the Hawler license area thanks to the successful completion of six new producing wells, increasing production from the Zey Gawra Cretaceous reservoir and commencing production from both the Cretaceous and Tertiary reservoirs in the Banan field.

 

We continued to refine our prospect inventory in the AGC Central license area with the remapping of 23 prospects in six structures. We have also identified and ranked a series of wells that will allow us to start exploring the license that has best estimate unrisked gross (working interest) prospective oil resources of 2.2 billion barrels.

 

Our 2019 capital program is once again focused on our two core license areas: the Hawler license area in the Kurdistan Region of Iraq and the AGC Central license area offshore Senegal and Guinea Bissau. In the Hawler license area our program includes the drilling or re-entry of seven wells and has been designed to allow us to significantly increase production and to better define the remaining development potential of the four fields in the license. We expect to spud the first of seven planned wells in the coming days. In the AGC Central license area, our forecasted capital expenditures include costs related to an environmental impact assessment and preparations for exploration drilling in 2020.

 

The combination of higher production, higher oil prices and regular payments for oil sales in 2018 resulted in higher funds flow which together with cash on hand allowed us to fund our business in 2018 without seeking additional capital. We expect that cash on hand, cash receipts from net revenues, and proceeds from an undrawn credit facility provided by shareholders will fund forecasted capital expenditures and operating and administrative costs in 2019, although additional capital will likely be required to fund exploration drilling in the AGC Central license area in 2020.  

 

We look forward to implementing our plans in 2019 and to higher production in the Hawler license area while preparing for an exciting exploration drilling program in the AGC Central license area.”