News

Oryx Petroleum Announces its Year End 2016 Reserves and Resources

22 February 2017

Calgary, Alberta, February 22, 2017

Proved Plus Probable Oil Reserves of 202 MMbbl and US$ 1.0 billion(1) in Related After-Tax Net Present Value of Future Net Revenue as at December 31, 2016

Oryx Petroleum Corporation Limited (“Oryx Petroleum” or the “Corporation”) today announced its oil reserves and resources as at December 31, 2016 as evaluated by Netherland, Sewell & Associates, Inc. (“NSAI”), an independent oil and gas consulting firm, and as set forth in a report prepared in accordance with National Instrument 51-101 by NSAI dated February 22, 2017 (the “2016 NSAI Report”). The reserves and resources disclosure coincides with the filing on SEDAR at www.sedar.com of a material change report (the “Material Change Report”), which includes additional information derived from the 2016 NSAI Report.

Highlights of the report for Oryx Petroleum’s gross (working interest) oil reserves and resources volumes, and future net revenue related to oil reserves and contingent oil resources sub-classified as development pending in the Hawler license area as at December 31, 2016, as compared to estimates prepared by NSAI as at December 31, 2015 (the “2015 NSAI Report”), include:

• Proved plus probable oil reserves of 202 million barrels (“MMbbl”) versus 238 MMbbl as at December 31, 2015:
  - Downward revision of volumes attributable to the Demir Dagh Jurassic reservoir based on performance of the Demir Dagh-3 well in 2016
• After-tax net present value of future net revenue related to proved plus probable oil reserves of US$ 1.0 billion(1) versus US$ 1.2 billion( ) as at December 31, 2015 based on:
  - Lower forecasted Brent crude oil prices and assumed export oil prices
  - Lower volumes attributable to the Demir Dagh Jurassic reservoir
  - Lower development costs due primarily to revisions to Demir Dagh Jurassic volumes, lower operating costs, and revisions to development plans requiring fewer facilities 
• Best estimate (2C) unrisked contingent oil resources of 146 MMbbl as at December 31, 2016 unchanged versus estimates as at December 31, 2015:
  - Best estimate (2C) risked contingent oil resources sub-classified as development pending unchanged as at December 31, 2016 with related after-tax risked net present value of future net revenue of US$ 71 million(1) as at December 31, 2016 versus US$ 85 million(2) as at December 31, 2015
• Best estimate unrisked prospective oil resources of 853 MMbbl versus 1,343 MMbbl as at December 31, 2015, reflecting abandonment of the Wasit license area

(1) These estimated values are calculated using a 10% discount rate and are valid as at December 31, 2016. Estimated value of future net revenue does not represent fair market value. See the Material Change Report for additional information regarding these estimated values.
(2) These estimated values are calculated using a 10% discount rate and are valid as at December 31, 2015. 

CEO’s Comment
Commenting today, Oryx Petroleum’s Chief Executive Officer, Vance Querio, stated:
“We are pleased to report our reserves and resources at year end 2016 as evaluated by NSAI. Our proved plus probable reserve estimates and associated after-tax net present value of future net revenue have been impacted by a lower for longer oil price outlook, the downward revision of reserve volumes attributable to the Demir Dagh Jurassic reservoir, and adjustments to development plans. In addition, the revised estimates reflect significantly lower capital investment requirements than estimated previously as a result of the removal of the relatively high development costs associated with Demir Dagh Jurassic volumes, reduced facilities requirements and lower operating costs. Our reserve and resource base remains sizable. We look forward to a more active development program in 2017 focused on the Zey Gawra field in the Hawler license area and maturing our AGC Central exploration license area in West Africa.”