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Appraisal Drilling Update for Demir Dagh in Iraq

Source: www.gulfoilandgas.com 5/19/2014, Location: Middle East

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Oryx Petroleum Corporation Limited announces the test results for the Demir Dagh-3 well (DD-3) and Demir Dagh-5 well (DD-5) appraisal in the Hawler license area in the Kurdistan Region 7"We are very pleased with the results of DD-3. We successfully flowed oil from the well´s primary targets in the Cretaceous and Lower Jurassic reservoirs. The results confirmed the presence of similar crude qualities for all reservoirs tested as experienced at other wells drilled at Demir Dagh. DD-3 is being completed as a Cretaceous producer together with DD-2 and DD-4 and first production will be achieved soon. Our production guidance for 2014 remains unchanged.

At DD-5 there was evidence of a permeable fracture network, hydrocarbons and matrix porosity similar to observed in the Cretaceous at other Demir Dagh wells. However, the well tested only small quantities of oil as it was unable to re-connect to the permeable fracture network. DD-5 and DD-3 results will be considered together with results and data obtained from other Demir Dagh appraisal activities in the Corporation´s year end reserves and resources update.

We have now spudded DD-6 and expect to drill four additional development wells at Demir Dagh this year in order to increase production capacity and continue delineating the field. DD-6 will be the first deviated well in Demir Dagh which is generally dominated by vertically oriented fractures. We anticipate DD-6 will provide greater information regarding the fracture network’s characteristics while also allowing us to better access the fracture network for future production."

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