Oryx Petroleum 2014 Financial and Operational Results

Oryx Petroleum 2014 Financial and Operational Results

Oryx Petroleum Corporation Limited (“Oryx Petroleum” or the “Corporation”) announced its financial and operational results for the year ended December 31, 2014. All dollar amounts set forth in this news release are in United States dollars, except where otherwise indicated.

2014 Operations Highlights:
Declaration of commercial discovery for Demir Dagh
First production achieved in second quarter
Gross (100%) oil production from Demir Dagh of 533,000 bbl (working interest 346,000 bbl)
– 3,900 bbl/d average (working interest 2,500 bbl/d) for the actual days of production
Gross (working interest) proved plus probable oil reserves increased by 27%
Nine appraisal and development wells drilled at Demir Dagh with three wells capable of production at year end representing gross (100%) wellhead production capacity exceeding 15,000 bbl/d
Oil discovery at Banan and drilling of appraisal wells at each of Banan and Ain Al Safra
Capacity of production facilities increased to 20,000 bbl/d with associated increases to storage and truck loading station capacity
Successful testing of Elephant discovery in Haute Mer A license area offshore Congo (Brazzaville)
Award of interest in the AGC Central license area offshore Senegal and Guinea Bissau

2014 Financial Highlights:
Total revenues of $19.6 million on working interest sales of 295,000 bbl of oil and average realized sales price of $55.69/bbl
Net loss of $19.0 million ($0.17 per share) versus $185.8 million ($2.04 per share) for the year ended December 31, 2013
Full year capital expenditure of $326 million including $290 million in the Hawler license area
$110 million of cash and cash equivalents as of year-end
– $100 million undrawn credit facility provided by The Addax & Oryx Group P.L.C. (“AOG”) in March 2015 provides additional liquidity

2015 Operations Update:

  • Gross (100%) oil production averaged 3,100 bbl/d and 1,100 bbl/d, respectively, for the months of January 2015 and February 2015
  • Commenced oil liftings on March 16, 2015 with regional marketer
  • Five wells at Demir Dagh are now tied into the Hawler production facilities, and collectively represent gross (100%) wellhead production capacity of over 25,000 bbl/d
  • Tie-in to the expanded Kurdistan Region of Iraq (KRI) to Turkey export pipeline expected to be completed in the second quarter
  • Commissioning of Early Production Facility with gross (100%) nameplate capacity of 40,000 bbl/d expected to be completed in the second quarter
  • The drilling of five development wells at Demir Dagh is planned for the second half of the year
  • Target production guidance of 35,000 to 45,000 bbl/d by year end remains unchanged
    2015 Capital Expenditure Forecast:

2015 capital expenditure forecast of $140 million
– $125 million dedicated to the Hawler license area primarily for facilities and development drilling

CEO`s Comment
Commenting, Oryx Petroleum`s Chief Executive Officer, Michael Ebsary, stated:
“2014 was a year for Oryx Petroleum characterized by a high level of activity in an increasingly complex operating environment. The decline in international oil prices, security developments in Northern Iraq and consequent changes in local crude oil market dynamics all impacted our operations. Notwithstanding these challenges, we achieved significant progress in 2014, primarily in the Kurdistan Region of Iraq.

We made a discovery at Banan which drove a 27% increase in our proved plus probable oil reserves in 2014. Our proved plus probable oil reserves have now increased 65% since the March 2013 independent evaluation of our reserves completed in preparation for our initial public offering. We achieved first production from the Demir Dagh field in approximately 15 months from the original discovery. We drilled nine appraisal and development wells at Demir Dagh where we now have gross wellhead production capacity of over 25,000 barrels per day. And we are on track to commission our early production facility and tie-in line to an expanded Kurdistan Region-Turkey international export pipeline.

In 2015, our focus will remain in the Kurdistan Region of Iraq where we will complete the development drilling and facilities construction expected to facilitate achievement of our production target of 35,000 to 45,000 barrels per day by year end. We continue to pursue all avenues to improve our market access for crude oil sales. Upgrades to regional export infrastructure are nearing completion and we are optimistic that this should improve both local and export market access for all producers in the Kurdistan Region. Meanwhile, a regional marketer has recently commenced liftings of crude from Hawler.
With our cash on hand at year end and the borrowings recently made available by The Addax & Oryx Group we have more than sufficient liquidity to help us fund our 2015 program and navigate through near-term uncertainty to the better days we believe lie ahead.”

Source: oryxpetroleum.com

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