Oryx Petroleum Third Quarter 2016 Financial and Operational Results and 2017 Capital Budget

CALGARY, Nov. 9, 2016

CALGARY, Nov. 9, 2016 /CNW/ - Oryx Petroleum Corporation Limited ("Oryx Petroleum" or the "Corporation") today announces its financial and operational results for the three and nine months ended September 30, 2016 as well as its 2017 capital expenditure budget. All dollar amounts set forth in this news release are in United States dollars, except where otherwise indicated.

Operations Highlights:

• Average gross (100%) oil production of 2,900 barrels per day ("bbl/d") for Q3 2016 from the Demir Dagh field
  • Production achieved on all days in the quarter with all production sold via export pipeline
  • Average realisation on sales of $35.19/bbl reflecting a discount of $10.66/bbl to average Brent crude oil price
• Average gross (100%) oil production of 2,900 bbl/d in October 2016 at the Demir Dagh field
  • Average realisation on sales of $39.17/bbl reflecting a discount of $10.49/bbl to average Brent crude oil price
• Appraisal and initial development of the Zey Gawra field in progress with initial intervention on one of three planned wells concluded
  • The ZAB-1 well in the Zey Gawra field was spudded in 1990, reached targeted total depth and was successfully re-entered in 2002 after a long suspension prompted by the Gulf War, with the well suspended again prior to completion due to the resumption of hostilities in Iraq
  • In late September 2016, Oryx Petroleum resumed test activities conducting a fluid identification test through a 17 metre perforated interval at a depth of approximately 1,000 metres in the Tertiary reservoir.
  • After a series of short clean-up flow periods, the well flowed steadily during an 8 hour test through a one inch choke, producing 9.6 million standard cubic feet per day of natural gas with 2.8 percent hydrogen sulphide, 1,120 bbl/d of water and approximately 20 bbl/d of 33 degree API oil.
  • The well was not completed as a producer and has been suspended. Data obtained during the work indicate a lack of zonal isolation behind the casing. As such, the Corporation intends to further evaluate the Tertiary reservoir at the Zey Gawra field in the coming months. The Corporation has no estimated reserves or contingent resources attributed to the Tertiary reservoir as of December 31, 2015.
  • The sidetrack and re-completion of the Zey Gawra-1 discovery well in the Cretaceous reservoir, where the Corporation does have estimated reserves as of December 31, 2015, is now underway with results and first production expected in December 2016.
  • The drilling of a third well in the appraisal and initial development of the Zey Gawra field targeting the Cretaceous reservoir is planned in the first half of 2017.
  • The installation of leased production facilities at the Zey Gawra field, from which oil will be trucked to the existing Hawler tanker terminal, and modifications to the Hawler tanker terminal and production facilities required to handle Zey Gawra crude oil are complete.
• The Corporation is in the final stages of contracting with a party to conduct a multi-client 3D seismic survey in the AGC Central license area. It is envisioned that approximately 2000 km² of 3D seismic data will be acquired in Q4 2016 and that the data will be processed and interpreted in the first half of 2017.
• Agreements relating to the Corporation's right to conduct oil exploration activities in the Wasit province of Iraq are no longer in effect. Permits necessary for exploration activities to proceed have never been issued, restricting the ability of the Corporation to advance exploration activity during the terms of the applicable agreements.

Financial Highlights for the three months ended September 30, 2016:

• Revenues of $6.7 million on working interest sales of 172,100 bbl of oil and an average realised sales price of $35.19/bbl
  • The Corporation has received full payment in accordance with production sharing contract entitlements for all oil sale deliveries into the Kurdistan Export Pipeline up to and including September 2016.
• Operating expenses of $2.8 million ($16.50/bbl) and Oryx Petroleum Netback¹ of $4.59/bbl
  • 51% decrease in operating expenses in both absolute and per barrel terms versus Q3 2015
  • 49% increase in Oryx Petroleum Netback¹ vs Q2 2016
• General and administrative expenses of $2.2 million
  • 32% reduction versus Q3 2015
• Net loss of $8.7 million ($0.04 per common share)
• Net cash used in operating activities was $2.1 million versus $2.5 million in Q3 2015 including negative Operating Cash Flow² of $0.6 million and a $1.5 million decrease in working capital
• Net cash used in investing activities was $7.6 million including payments related to initial work on the first phase development of the Zey Gawra field, the finance lease obligation related to the Demir Dagh production facilities, technical support costs and payments for capital investment in prior periods
• $46.6 million of cash and cash equivalents as of September 30, 2016

_____________________

1 Oryx Petroleum Netback is a non-IFRS measure. See the table below for a definition of and other information related to the term.

2 Operating Cash Flow is a non-IFRS measure. See the table below for a definition of and other information related to the term. ARIVA.DE Börsen-Geflüster Kurse Forza Petroleum -   0,00%

Q4 2016 Forecasted and 2017 Budgeted Capital Expenditures:

• Q4 2016 forecasted capital expenditure and capital lease payments of $15 million, including previously unplanned capital expenditure of approximately $2 million for a 3D seismic data survey in the AGC Central license area
• 2017 Budgeted capital expenditures of $94 million
  • $33 million for drilling in the Hawler license area
  • $35 million for facilities in the Hawler license area
  • $21 million for drilling activities in the AGC Shallow license area
  • $5 million for seismic processing, studies and licence maintenance costs

Liquidity and Outlook:

• Oryx Petroleum expects cash on hand as of September 30, 2016 and cash receipts from net revenues to fund forecasted cash expenditures into the second quarter of 2017. The Corporation will require $20-$25 million of additional liquidity to achieve production and cash flow levels that will allow it to sustain its operations and fulfil its committed obligations in 2017. The Corporation will require a further $50-$60 million of liquidity to fund its full 2017 budgeted expenditures.
• Assuming full funding of expenditures included in the Corporation's 2017 budget, the successful completion of all planned activities, and drilling success, the Corporation expects gross (100%) oil production from the Hawler license area to be approximately 4,000 to 5,000 bbl/d by the end of 2016 and 12,000 to 15,000 bbl/d by the end of 2017.

CEO's Comment

Commenting today, Oryx Petroleum's Chief Executive Officer, Vance Querio, stated:

"During Q3 2016 we maintained stable and uninterrupted production and sales. Gross (100%) oil production averaged approximately 2,900 bbl/d in Q3 2016 with all production sold via the export pipeline and payments for export sales through the end of September received. We achieved higher positive netbacks versus Q2 2016 and reduced our operating cash outflow and net loss.

The appraisal and initial development of the Zey Gawra field is well underway. The installation of leased production facilities at the Zey Gawra field and modifications to the Hawler tanker terminal are essentially complete and we have recently concluded the re-entry of the ZAB-1 well targeting the Tertiary reservoir. Although we have no reserves or contingent resources in the Zey Gawra Tertiary reservoir, we elected to conduct a relatively low cost re-entry and a fluid identification test based on data from the original ZAB-1 well.  

The fluids produced during the ZAB-1 fluid identification test were primarily natural gas and water with only a small quantity of light oil and we did not complete the well as a producer as originally intended. Data obtained during the procedure suggests a lack of zonal isolation and we believe there is a need for further evaluation which we intend to undertake at minimum cost in the coming months.

We have now commenced work on the re-completion of the Zeg-1 discovery well with results and first production expected in December 2016. The drilling of a new well targeting the Zey Gawra Cretaceous reservoir is expected to be completed in the first half of 2017.

Outside of the Hawler license area we have sponsored a multi-client 3D seismic survey in the AGC Central license area in order to better delineate what we believe to be the significant potential of this license area.

Our 2017 Budget has been designed to allow us to significantly increase production, better define development potential of the key reservoirs where we currently have reserves, and meet activity commitments throughout our license areas. Our budgeted capital expenditures for the first half of 2017 include funds to cover the re-entry and re-completion of the Demir Dagh-8 well in the Cretaceous reservoir as well as a third well at the Zey Gawra field. In the second half of the year we expect to drill a fourth well targeting the Zey Gawra Cretaceous reservoir, to drill a horizontal well targeting the Demir Dagh Cretaceous reservoir, to complete the appraisal of the Banan-2 well, to construct a multiphase tie-back line from the Zey Gawra field to our production facilities at the Demir Dagh field, and to make further modifications to those processing facilities to accommodate additional Zey Gawra production. We also plan to fulfil our drilling commitment in the AGC Shallow license area with one or two shallow wells.

If both of the remaining wells included in our plan for the appraisal and initial development of Zey Gawra field are successful, we expect to achieve production and revenue levels by mid-2017 that will allow us to cover our ongoing operating and administrative expenditures and non-discretionary/maintenance capital expenditures. We estimate our current cash on hand and net revenues from sales will fund our planned expenditures into Q2 2017. We expect that a restructuring of obligations and/or a modest financing will be required to sustain our operations beyond Q2 2017 and that a more sizable financing will be required to fund our full 2017 budgeted expenditures. We are in discussions with relevant parties to address these needs and are confident we will be successful." 

Selected Financial Results

Financial results are prepared in accordance with International Financial Reporting Standards ("IFRS") and the reporting currency is US dollars. References in this news release to the "Group" refer to Oryx Petroleum and its subsidiaries. The following table summarises selected financial highlights for Oryx Petroleum for the three and nine month periods ended September 30, 2016 and September 30, 2015 as well as the year ended December 31, 2015.

		Three Months Ended September 30		Nine Months Ended September 30		Year Ended December 31
($ in millions unless otherwise indicated)		2016	2015	2016	2015	2015
Revenue		6.7	4.2	15.0	18.9	20.5
Working Interest Oil Production (bbl)		172,000	168,200	402,000	524,800	599,000
Average WI Oil Production per day (bbl/d)		2,900	2,800	2,300	3,000	1,600
Working Interest Oil Sales (bbl)		172,100	170,000	411,300	520,200	588,200
Average Sales Price ($/bbl)		35.19	20.83	32.78	30.49	29.20
Operating Expense		2.8	5.7	9.6	15.5	19.9
Field production costs ($/bbl)(1)		12.61	25.81	17.78	22.80	25.83
Field Netback ($/bbl)(2)		4.58	(15.64)	(1.76)	(7.91)	(11.56)
Operating expenses ($/bbl)		16.50	33.75	23.25	29.81	33.77
Oryx Petroleum Netback ($/bbl)(3)		4.59	(19.55)	(3.60)	(9.01)	(13.92)
Net Loss		8.7	317.8	39.5	332.1	423.6
Loss per Share ($/sh)		0.04 Werbung Mehr Nachrichten zur Forza Petroleum Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 26.04.24 - PR Newswire Datang Intnl Pwr Gen - CONNECTED TRANSACTION ANNOUNCEMENT 26.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Shanta Gold Ltd 26.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Mattioli Woods plc Sehen Sie sich dieses Unternehmen an:    Foto: andreas160578 - Pixabay Rasanter Aufstieg, Branchenrevolution und Jahresumsatz von 50 Mio. $ weiterlesen» Anzeige wo-site-teaser-box-16764_site-teaser-box_2024-04-26_09%253A00%253A00_2024-04-27_09%253A00%253A59