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Oil found in Oryx Petroleum’s license area in Kurdistan Region of Iraq

Exploration & Production

The Demir Dagh-3 well (DD-3) and Demir Dagh-5 well (DD-5) located at Hawler License area in Kurdistan Region of Iraq have proven hydrocarbon presence, according to Oryx Petroleum

The Middle East-focused exploration company is the operator and has a 65 per cent participating and working interest in the area.

Oryx Petroleum said that all four tests successfully flowed oil with the highest achieved sustained rate exceeding 4,000 bpd. First successful test of Butmah formation in the Lower Jurassic at Demir Dagh. Second successful test of the Adaiyah formation in the Lower Jurassic at Demir Dagh.Third successful test of the Cretaceous reservoir at Demir Dagh. Crude characteristics and porosities similar to other wells drilled at Demir Dagh

Meanwhile, Demir Dagh-6 well (DD-6) was recently spudded and is expected to reach total depth in early Q3 2014. DD-6 and four additional development wells to be drilled in 2014 and 3D seismic campaign is expected to commence in June 2014.

Henry Legarre, CEO of Oryx Petroleum, said, “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.”.

According to the company, Sakson Hilong 10 rig spudded the DD-3 appraisal well in November 2013, approximately three kilometres to the South-East of DD-2 and reached a total depth of approximately 4,400 metres in the Kurra Chine formation in the Triassic in March 2014. Based on core and logging analysis and observations during drilling, including losses, oil on shakers and oil shows on cuttings a multi-zone testing was designed.

The testing programme was comprised of four cased-hole drill stem tests (DSTs) targeting Cretaceous and Lower Jurassic reservoirs.

The first DST, conducted in the Butmah formation in the Lower Jurassic, successfully flowed oil at a sustained natural flow rate of 500 bpd over a period of three days using a 128/64-inch choke. The well flowed 100 per cent oil at over 3,000 bpd during the initial six-hour phase of the test, but water appeared later in test indicating the bottom of the interval perforated was close to the free water level. The crude oil from the Butmah formation was measured on site with an average of 28° API.

The second DST, conducted in the Adaiyah formation in the Lower Jurassic, successfully flowed over a period of 24 hours using a series of different choke sizes. The maximum sustained flow rate achieved was 4,000 bpd of oil for a six-hour period using a 64/64-inch choke under natural flow. The crude oil from the Adaiyah formation was measured on site between 36° API and 40° API gravity, similar to crude measured in the Adaiyah and Mus formations tested with DD-2.

The third DST, conducted in the Mergi and Kometan formations in the Upper Cretaceous, successfully flowed oil at an average rate of 550 bpd over a period of 18 hours using a 128/64-inch choke size. The crude oil tested was measured on site between 20° API and 21° API gravity, similar to crude measured in the Cretaceous formations tested at DD-2 and DD-4.. Natural gas and hydrogen sulfide were encountered but it was not possible to obtain measurements

The fourth DST was conducted in the Shiranish formation in the Upper Cretaceous. Oil was successfully flowed over a period of 24 hours using a series of different choke sizes. The maximum sustained flow rate achieved was 3,200 bpd of oil for an eight-hour period using a 64/64-inch choke under natural flow. The crude oil from the Shiranish formation was measured on site between 21° and 22° API gravity, similar to crude measured in the Cretaceous formations tested at DD-2 and DD-4.

Oryx Petroleum said that the Sakson Hilong 10 rig is in the process of moving to Banan to spud the Banan-2 appraisal well.

The Romfor 22 rig spudded the DD-5 appraisal well in early March 2014 approximately three kilometres to the west of DD-2 in the saddle between the Demir Dagh and Banan structures. DD-5 reached a total depth of approximately 1,900 metres in the Lower Cretaceous in April 2014. Based on core and logging analysis and observations during drilling, including losses, oil on shakers and oil shows on cuttings a testing programme comprised of two DSTs was designed. Both DSTs flowed small quantities of oil to surface but were unable to re-connect with the permeable fracture networks and achieve sustained flow rates.

The company added that all field fluid measurements at DD-3 and DD-5 will require laboratory analysis to confirm results and should be considered preliminary until such analysis has been done.

The Romfor 22 rig has also spudded DD-6 from the DD-4 drill pad 1.5km from DD-2. The well is expected to reach a total measured depth of approximately 2,060 metres in the Lower Cretaceous in Q3 2014. The well is targeting the crest of the Cretaceous reservoir just to the south of the fault running from west to east across the structure between the Demir Dagh-1 well and DD-2. Four additional development/appraisal wells will be drilled in 2014 to the Lower Cretaceous in order to increase production capacity and to further delineate the Cretaceous reservoir

Oryx Petroleum has recently agreed with a third party seismic provider to acquire 440 sq km of 3D seismic covering the Demir Dagh, Banan and Zey Gawra discoveries. The seismic acquisition campaign will commence in June 2014.