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Oryx successful at DD-6 Kurdistan well and soon to spud DD-7 despite security concerns

07th July 2014

Oryx Petroleum Corporation has announced a production and drilling update for the Demir Dagh field in the Hawler licence area in the Kurdistan Region of Iraq, including test results for the Demir Dagh-6 appraisal well (DD-6)

Oryx successful at DD-6 Kurdistan well and soon to spud DD-7 despite security concerns
The well demonstrated high productivity but natural gas encountered at the top of the perforation constrained use of choke sizes and flow rates

“We are very pleased that production and sales are both increasing smoothly and we are pleased with the results of DD-6,” said Henry Legarre, Oryx Petroleum’s chief operating officer. “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.”

Oryx Petroleum is the operator and has a 65 per cent participating and working interest in the Hawler licence area.

It reports that gross production at the Demir Dagh field is approximately at 4,000 barrels a day (bbl/d).

Two cased-hole drill stem tests (DSTs) were successfully conducted at DD-6 in the Cretaceous reservoirs with a 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.

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).

“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.”

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