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CEO's Message

“The first quarter of 2019 was a good quarter for Oryx Petroleum, during which we once again increased production from the Hawler license by increasing production rates from wells brought online in late 2018. Average daily oil production was just over 11,000 bbl/d in April. We also began our 2019 drilling program in the Hawler Area with the drilling of the Banan-6 well targeting the Cretaceous reservoir. The well has recently been drilled to a measured depth of 1,840 metres and we expect to run production equipment into the well in the next few days.

We finalised the ranking of our prospect inventory in the AGC Central license area and have begun planning and preparation for an exploration drilling campaign. The next major step in that process is the completion of an environmental and social impact assessment and we have recently selected a third party service provider to conduct the assessment. Exploration drilling is expected to follow the completion and formal approval of the assessment. 

We have revised our 2019 capital expenditure program somewhat so that it now includes the drilling or re-entry of eight wells in the Hawler Area, including the Banan-6 well that is nearly complete. The program has been designed to allow us to significantly increase production and to refine our understanding of the remaining development potential of the four fields in the license. We expect to spud the second 2019 well, a horizontal side track of the Demir Dagh-5 well in the Cretaceous reservoir soon after we complete Banan-6 in the coming weeks.

During Q1 2019 we generated operating funds flow which exceeded cash used in investing activities. We expect that cash on hand, cash receipts from net revenues and proceeds from an undrawn interim 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 contingent consideration obligations expected to become payable in 2019 and exploration drilling in the AGC Central license area in 2020. 

We look forward to continuing to implement our plans in 2019 and to achieve higher production in the Hawler license area while continuing preparations for an exploration drilling program in the AGC Central license area.”