Oryx Petroleum Announces Production and Appraisal Drilling Update for Demir Dagh Field in Kurdistan Region of Iraq
Oryx Petroleum Corporation Limited (“Oryx Petroleum” or the “Corporation”) today announces a production and drilling update for the Demir Dagh field in the Hawler license area in the Kurdistan Region of Iraq, including test results for the Demir Dagh-6 appraisal well (“DD-6”). Oryx Petroleum is the operator and has a 65% participating and working interest in the Hawler license area.
Gross (100%) production at the Demir Dagh field is currently approximately 4,000 bbl/d
– Liftings/sales and payments are proceeding in accordance with the agreement with a third party marketer
Two cased-hole drill stem tests (“DSTs”) were successfully conducted at DD-6 in the Cretaceous reservoirs
– Maximum sustained natural flow rate of approximately 700 bbl/d of oil using a 16/64” choke
– The well demonstrated high productivity but natural gas encountered at the top of the perforation constrained use of choke sizes and flow rates
– Similar crude qualities were encountered as tested in the Cretaceous reservoirs at other Demir Dagh wells
2014 Demir Dagh Appraisal and Development
– Demir Dagh-7 well (“DD-7”) is to be spudded in the coming weeks and is expected to reach a total depth in Q3 2014
– Three additional development wells are to be drilled in 2014 as deviated wells to Lower Cretaceous reservoirs
– Preparation work for the acquisition of 440 square kilometres of 3D seismic data over the Demir Dagh, Banan and Zey Gawra discoveries commenced in June 2014
Operations remain largely unaffected by the security situation in northern Iraq (outside of the Kurdistan Region)
Commenting today, Henry Legarre, Oryx Petroleum’s Chief Operating Officer, stated:
“We are very pleased that production and sales are both increasing smoothly and we are pleased with the results of DD-6. We successfully flowed oil from the well´s primary target in the Cretaceous. The results confirmed the presence of similar crude qualities for the Cretaceous reservoir tested at other wells drilled at Demir Dagh. However, sustained flow rates achieved were less than expected despite high well productivity. We encountered some natural gas at the top of the perforation interval which restricted our ability to use high choke sizes. If we did not encounter the gas DD-6 would likely have been one of our most productive wells at Demir Dagh.
We expect to spud DD-7 in the coming weeks and expect to drill three additional development wells at Demir Dagh this year in order to increase production capacity and continue delineating the field.
Importantly, our operations remain largely unaffected by the security situation in northern Iraq, outside of the Kurdistan Region. We continue to vigilantly monitor the situation and implement measures to mitigate risks.”