Oryx Petroleum Corporation Limited Announces Third Quarter 2013 Financial and Operational Results and 2014 Capital Budget

Oryx Petroleum Corporation Limited Announces Third Quarter 2013 Financial and 
Operational Results and 2014 Capital Budget 
CALGARY, Nov. 7, 2013 /CNW/ - Oryx Petroleum Corporation Limited ("Oryx 
Petroleum" or the "Corporation") today announced its financial and operational 
results for the quarter ended September 30, 2013. 
CEO`s Comment 
Commenting today, Oryx Petroleum`s Chief Executive Officer, Michael Ebsary, 
"The third quarter was another positive one for Oryx Petroleum. In the 
Kurdistan Region of Iraq we have progressed our appraisal of the Demir Dagh 
discovery and believe we are a matter of months away from a declaration of 
commerciality and first production. We added to our asset base with two more 
discoveries at Ain Al Safra and Elephant, are testing the ZEG-1 exploration 
well, and have spudded two further exploration wells at Banan and Horse. 
Looking ahead, with what we believe is a substantially improved outlook for 
exports in the Kurdistan Region of Iraq, we are prioritizing our appraisal and 
development efforts in the Hawler license area while continuing to drill 
exciting exploration wells in other areas of our portfolio. We look forward to 
growing our reserve base through both appraisal and exploration and achieving 
first production in 2014." 
Selected Financial Highlights 
Financial results are prepared in accordance with International Financial 
Reporting Standards ("IFRS") and the reporting currency is US dollars. The 
following table summarizes the selected financial highlights for Oryx 
Petroleum for the three and nine months ended September 30, 2013, the three 
and nine months ended September 30, 2012 and the year ended December 31, 2012: 

                       3 Months Ended     9 Months Ended    Year Ended
                        September 30       September 30     December 31

($ in millions)         2013     2012       2013     2012          2012

Net Comprehensive                                          
Loss                     65.1      7.1     150.6     46.2          58.5

Net Loss per share                                         
($/sh)                   0.65     0.27      1.72     2.40          1.56

Cash flow generated                                        
by / (used in)
operations                2.6    (5.0)     (6.9)   (10.4)        (23.8)

Cash flow used in                                          
investing activities   (62.5)   (19.6)   (164.6)   (42.1)        (92.9)

Capital Expenditures   (69.2)   (13.7)   (172.6)   (55.9)       (137.4)

Cash and Cash                                              
Equivalents             377.4    136.5     377.4    136.5          72.7

Total Assets            989.3    545.2     989.3    545.2         577.8

Total Equity            802.9    455.4     802.9    455.4         446.9
    --  Net loss for the quarter increased from $7.1 million in 2012 to
        $65.1 million in 2013 due to a higher impairment charge, an
        upward revision to the fair value of contingent payments
        related to the acquisition of the Hawler license area and an
        increase in general and administrative expenses. The $65.1
        million loss in Q3 2013 includes a $45.2 million impairment
        charge related to the relinquishment of the Sindi Amedi license
        area while the loss in Q3 2012 included a $2.1 million
        impairment reversal for the Mateen exploration well in the
        Sindi Amedi license area. The fair values of the contingent 
        payments were re-evaluated to reflect the increased chance of
        commercial discovery following the drilling results from the
        Ain Al Safra well, and to move forward the due date of a
        portion of the contingent payments. The fair value of the
        contingent  payments increased by $14.3 million,  $9.8 million
        of which was recognized as expense in Q3 2013. General and
        administrative costs increased by $1.8 million to $8.7 million
        due to an increase in the average employee headcount from 46 to
        Weighted average shares outstanding for purposes of net loss
        per share calculations is 99.7 million. As of September 30,
        2013 total shares outstanding were approximately 99.8 million
        and 100.7 million on basic and fully diluted bases,
    --  Net Cash generated by operating activities was $2.6 million for
        the third quarter of 2013 compared to cash used in operating
        activities of $5.0 million during the comparative period in
        2012. The difference reflects an increase in trade and other
        payables due primarily to the $14.3 million adjustment to
        contingent payments net of which $4.5 million was capitalized.
        The increase in trade and other payables was partially offset
        by an increase in cash general and administrative expenditures.
        Cash flow used in investing activities increased from $19.6
        million to $62.5 million reflecting increased operational
        activity, notably the drilling of the ZEG-1, AAS-1 and BAN-1
        exploration wells in the Hawler license area, and the drilling
        of the E-1 exploration well in the Haute Mer A license area.
        For the nine months ended September 30, 2013, cash flow used in
        investing activities totaled $164.6 million and is expected to
        total approximately $300.0 million as of December 31, 2013. The
        differences between cash flow used in investing activities and
        capital expenditures are due primarily to non-cash adjustments
        to the fair value of contingent payments.
    --  Cash and cash equivalents decreased to $377.4 million from
        $437.5 million at June 30, 2013 reflecting cash general
        administrative expenditures and capital expenditures offset by
        financial income and an increase in working capital. Oryx
        Petroleum has no borrowings as of September 30, 2013.

Selected Operational Highlights

Operational highlights in Q3 2013 include:

Kurdistan Region of Iraq
    --  Demir Dagh Appraisal - The Corporation has significantly
        progressed its appraisal plan for the Demir Dagh discovery.
        Oryx Petroleum has a 65% participating and working interest in

    the Hawler license area. Key highlights include the following:
  o Early Production Facility ("EPF") and related infrastructure - The 

    design of the previously announced EPF leased from Expro is
    complete with the main separation trains under refurbishment and
    fabrication of storage tanks in progress.  The facility is designed
    to have multiple trains with the ability to process light, heavy,
    sweet and sour crude types. The acquisition of land needed for the
    EPF is complete and civil works to prepare the site are well
    underway. Equipment has been ordered and is being mobilized to site
    for both for the planned truck loading facility and the tie-in to

the Khurmala-Faysh Khabur pipeline.
  o Appraisal Drilling - With the completion of the AAS-1 exploration 

    well initial testing, the Sakson Hilong 10 rig has moved to Demir
    Dagh and will spud the DD-3 well approximately 3 km to the
    South-East of DD-2.  DD-3 is expected to spud in the second half of
    November with a targeted total depth of 4,135 metres.  The well is
    intended to appraise the Cretaceous, Jurassic and Triassic age
    reservoirs that were discovered with DD-2.  In particular, DD-3
    will appraise formations in the Jurassic and Triassic where
    inconclusive results of DD-2 allowed for the booking of only
    prospective or contingent resources. The Corporation expects DD-3

to reach total depth and re-test in Q1 2014.
  o Another appraisal well (DD-4) is expected to be spudded in late Q4 

    2013 after the testing of the ZEG-1 exploration well and
    re-completion of the DD-2 well. DD-4 is expected to be drilled to a
    total depth of 2,130 metres, approximately 1 km to the South-West
    and across a major fault of DD-2 in order to appraise the flank of
    the Cretaceous reservoir and be completed as a producing well.  The
    appraisal drilling program, which includes a third well in early
    2014, should further establish the field structure, the extent of
    hydrocarbon fill and potentially result in an upgrade of the

reserves and resources booked in Demir Dagh.
  o Seismic Acquisition - Acquisition of 3D seismic over the Demir Dagh 

    structure is planned for 2014, which will provide additional
    information to further refine the full field development plan. A
    tender process for the seismic acquisition is in progress and

acquisition of data is anticipated to begin in mid-2014.
  o First Production - The Corporation expects the appraisal program to 

    be largely completed by mid-2014 with first production targeted for
    Q2 2014 from the DD-2 well and the DD-4 appraisal well with gross
    (100%) production totaling approximately 7,000 to 9,000 bbl/d. It
    is expected that following the drilling of DD-3, an additional
    appraisal well and two development wells the EPF will reach gross
    (100%) production capacity of 25,000 in Q4 2014 and the full gross
    (100%) production design capacity of 40,000 bbl/d in 2015. The
    Corporation plans to transport production by truck or through
    export pipelines.
    --  Demir Dagh Development - Upon a successful appraisal program,
        the Corporation plans to build a Permanent Production Facility
        ("PPF") with initial capacity of approximately 100,000 bbl/d.
        The Corporation plans to continuously drill development wells
        to increase production capacity in preparation for the
        commissioning of the PPF in 2016. Should the Demir Dagh
        appraisal program result in conversion of possible reserves
        and/or contingent resources to proved plus probable reserves,
        the Corporation expects to expand the capacity of the PPF in a
        modular fashion.
    --  Ain Al Safra (AAS-1) Discovery - As reported on October 24,
        2013, initial testing of the AAS-1 well resulted in an oil
        discovery in the lower Jurassic. Although testing was impaired
        by the rise of heavy mud in the tubing during the flow periods,
        the Corporation has decided to proceed with an appraisal well
        based on the test, interpretation of logging data and
        observations throughout drilling. The Corporation is also
        considering re-testing the AAS-1 well prior to drilling an
        appraisal well. Drilling is planned in 2014 that will appraise
        and test the discovery in the lower Jurassic which should allow
        the Corporation to further understand the full extent of the
        discovered oil column.  The appraisal well is also intended to
        drill to the Triassic to understand any upside potential that
        the AAS-1 well was unable to reach.
    --  Zey Gawra (ZEG-1) Exploration Well - An exploration well
        targeting the Zey Gawra prospect was spudded in mid-April 2013
        in the Hawler license area. The ZEG-1 well is targeting light
        oil potential in the lower Jurassic and Triassic, and heavier
        oil potential in the Tertiary and Cretaceous. Netherland,
        Sewell & Associates, Inc. ("NSAI") estimates as of March 31,
        2013 that the Zey Gawra prospect contains 23 MMbbl of unrisked
        gross (100%) prospective resources (risked: 9 MMbbl). The ZEG-1
        well reached a total depth of 4,398 metres in August. A testing
        program was designed based on logging of potential hydrocarbon
        bearing zones and observations during drilling. The program,
        using the Romfor 22 rig and encompassing the testing of four
        zones with one additional test contingent on the results of the
        fourth test, is in progress and is expected to be completed in
        Q4 2013.
    --  Banan Exploration well (BAN-1) and 2D seismic - The KS
        Discoverer 1 rig spudded the BAN-1 well, the Corporation`s
        fourth exploration well in the Hawler license area, targeting
        the Banan prospect on September 14, 2013. The BAN-1 well is
        targeting light oil potential in the lower Jurassic and
        Triassic, and heavier oil potential in the Cretaceous and upper
        Jurassic. NSAI estimates as of March 31, 2013 that the Banan
        prospect contains 196 MMbbl of unrisked gross (100%)
        prospective resources (risked: 102 MMbbl). NSAI`s estimate
        excludes a significant portion of the Banan prospect that was
        outside the Hawler license area boundaries prior to the
        December 2012 boundary extension. The well has reached a depth
        of approximately 2,600 metres in the upper Jurassic and is
        expected to reach a total depth of 4,153 metres and test in Q1
        2014.  Logging data, core analysis and observations during
        drilling in the Cretaceous confirms the presence of
        hydrocarbons and similar matrix porosity as observed at Demir
        Dagh but little can be concluded until a testing program is
        conducted. The Corporation`s analysis and observations to date,
        although not definitive, indicate that there is a low
        likelihood that the Banan structure is connected to the Demir
        Dagh structure.
    --  The Corporation recently completed the acquisition of
        approximately 210 kilometres of 2D seismic covering the
        extended portion of the Hawler license area that the
        Corporation believes will enable it to better understand and
        map the Banan structure.  

Congo (Brazzaville)
    --  Elephant (E-1) Discovery - On September 4, 2013, Oryx Petroleum
        announced that the exploration well targeting the Elephant
        (formerly Xiang) prospect in the Haute Mer A license area
        discovered natural gas and crude oil. The discovery, although
        subject to testing, overall appears to be consistent with
        expectations. NSAI estimates as of March 31, 2013 that the
        Elephant prospect contains 86 MMbbl of unrisked gross (100%)
        prospective resources (risked: 39 MMbbl). Oryx Petroleum has a
        20% participating and working interest in the Haute Mer A
        license area. Upon completion of drilling and potential testing
        of the H-1 well, the E-1 well will be tested and then likely
    --  Horse (H-1) Exploration Well - An exploration well targeting
        the Horse (formerly Ma) prospect in the Haute Mer A license
        area was spudded in September 2013 by the Jasper Explorer. H-1
        will be drilled to a total depth of 5,462 metres which is
        expected to be reached in Q4 2013. Primary targets are the
        Tertiary N3 formation, a turbiditic play, and the deeper
        Cretaceous formation, an Albian age carbonate play. NSAI
        estimates as of March 31, 2013 that the Horse prospect contains
        70 MMbbl of unrisked gross (100%) prospective resources
        (risked: 7 MMbbl).
    --  HMB Approval - As previously disclosed, The National Assembly
        of Congo (Brazzaville) (the "National Assembly") announced on
        July 25, 2013 that it had approved the award of the Haute Mer B
        permit. The Production Sharing Contract in respect of the Haute
        Mer B permit has since been finalized and initialed by all
        members of the contractor group who are now awaiting approval
        of the Production Sharing Contract by the National Assembly.

    --  Oryx Petroleum is in the final stages of processing and
        analyzing the seismic data collected in late 2012 covering the
        AGC Shallow license area.  The Corporation expects to begin a
        tendering process shortly for a planned exploration well in

Wasit Province of Iraq
    --  Efforts to secure approvals and prepare for planned seismic
        acquisition continued in Q3 2013.

    --  The Corporation and its partners continue to analyze existing
        3D seismic data and the results of the DIL-1 well and plan to
        acquire additional 3D seismic in 2014 in order to determine the
        course of future activity in the OML 141 license area.

2014 Capital Budget

Oryx Petroleum has recently completed its annual budget process. The following 
table summarizes the Corporation's 2014 budgeted capital expenditure program:

                    Drilling   Facilities      &      Other   Total
($ in
millions)                                       Studies 
Kurdistan   Hawler       217.0         81.0      45.6    23.0   366.6
Wasit       Wasit            -            -      18.7     8.3        
Province                                                           27.0 
Nigeria       OML 141          -            -      14.6     4.6         
AGC           AGC           40.0            -       0.3     4.6         

              Shallow                                              44.9

Congo         Haute         27.3            -       1.4     3.1        
(Brazzaville) Mer A                                                31.8
              Haute         34.8            -       0.8     3.5        
              Mer B                                                39.1

Corporate                      -            -         -     1.3        

Total                      319.1         81.0      81.4    48.3   529.8

Budgeted capital expenditures for 2014 include the anticipated drilling of 14 
wells (three exploration, six appraisal and five development), three seismic 
acquisition campaigns and the construction of production facilities. The 
Hawler license area is the key area of focus, representing almost 70% of total 
budgeted capital expenditures. Key activities expected in each license area 
are as follows:
    --  Hawler - the Corporation plans to have three rigs drilling
        continuously during 2014. These rigs will complete the drilling
        of the BAN-1 exploration well currently in progress, drill five
        appraisal wells (three at Demir Dagh, one at Ain Al Safra and
        one at either Zey Gawra or Banan), and drill five development
        wells at Demir Dagh. A 3D seismic campaign covering the Demir
        Dagh structure is also planned. Budgeted facilities capital
        expenditures include approximately $18 million for the EPF and
        approximately $58 million for the PPF.
    --  Wasit Province - a 2D seismic campaign is planned for the Wasit
        Province of Iraq.
    --  OML 141 - a 3D seismic campaign is planned for OML141.
    --  AGC Shallow - an exploration well is planned for AGC Shallow.
    --  Haute Mer A - a testing program and the drilling of an
        appraisal well for the Elephant discovery are planned for Haute
        Mer A.
    --  Haute Mer B - an exploration well is planned for Haute Mer B.

Oryx Petroleum believes current cash and cash equivalents are sufficient to 
fund the Corporation`s capital expenditure program and general and 
administrative costs to mid-2014 but anticipates it will need to source 
additional capital to fund its operations through the end of 2014 and into 
2015. Oryx Petroleum is in discussions with various financial institutions as 
well as its principal shareholder, the Addax & Oryx Group Limited, with 
regards to its capital requirements, and will seek to raise capital in the 
first half of 2014. Should appropriate additional financing not be available 
or should anticipated cash flows from production in Kurdistan not materialize 
or vary from expectations, the Corporation has the flexibility to adjust its 
2014 capital budget accordingly.

Regulatory Filings

This announcement coincides with the filing with the Canadian securities 
regulatory authorities of Oryx Petroleum's unaudited financial statements for 
the three and nine month periods ending September 30, 2013 and the related 
management's discussion and analysis thereon. Copies of these documents as 
well as the supplemented PREP prospectus dated May 8, 2013 filed by Oryx 
Petroleum may be obtained via www.sedar.com, and the Corporation's website, 
www.oryxpetroleum.com. Readers should note that the Corporation is no longer 
offering securities for sale under the prospectus and no part of this press 
release, including but not limited to the reference to the prospectus, 
constitutes an offering of securities in any jurisdiction.


Oryx Petroleum is an international oil exploration company focused in Africa 
and the Middle East. The Corporation`s shares are listed on the Toronto Stock 
Exchange under the symbol "OXC". The Oryx Petroleum group of companies was 
founded in 2010 by The Addax and Oryx Group Limited and key members of the 
former senior management team of Addax Petroleum Corporation. Oryx Petroleum 
has interests in six license areas prospective for oil and is the operator or 
technical partner in four of the six license areas. Two license areas are 
located in the Kurdistan Region and the Wasit governorate (province) of Iraq 
and four license areas are located in West Africa in Nigeria, the AGC 
administrative area offshore Senegal and Guinea Bissau, and Congo 

Reader Advisory Regarding Forward-Looking Information

Certain statements in this news release constitute "forward-looking 
information", including statements related to the nature, timing and effect of 
the Corporation's future capital expenditures and budget, financing and 
capital activities, business and acquisition strategy and goals, 
opportunities, reserves and resources estimates and potential, drilling plans, 
development plans and schedules and chance of success, future seismic 
activity, results of exploration activities, declarations of commercial 
discovery, contingent liabilities and government approvals, the ability to 
gain access to exterior facilities or build necessary facilities to sell 
future oil production, if any, future drilling of new wells, ultimate 
recoverability of current and long-term assets, future royalties and tax 
levels, access to future financing and liquidity, future debt levels, 
availability of committed credit facilities, possible commerciality of our 
projects, expected operating capacity, expected operating costs, estimates on 
a per share basis, future foreign currency exchange rates, future 
expenditures, changes in any of the foregoing and statements that contain 
words such as "may", "will", "would", "could", "should", "anticipate", 
"believe", "intend", "expect", "plan", "estimate", "budget", "outlook", 
"propose", "potentially", "project", "forecast" or the negative of such 
expressions and statements relating to matters that are not historical fact, 
constitute forward-looking information within the meaning of applicable 
Canadian securities legislation.

In addition, information and statements in this news release relating to 
reserves and resources are deemed to be forward-looking information, as they 
involve the implied assessment, based on certain estimates and assumptions, 
that the reserves and resources described exist in the quantities predicted or 
estimated, and that the reserves and resources described can be profitably 
produced in the future. See "Reserves and Resources Advisory" below.

Although Oryx Petroleum believes these statements to be reasonable, the 
assumptions upon which they are based may prove to be incorrect. In making 
certain statements in this news release, Oryx Petroleum has made assumptions 
with respect to the following: the general continuance of the current or, 
where applicable, assumed industry conditions, the continuation of assumed 
tax, royalties and regulatory regimes, forecasts of capital expenditures and 
the sources of financing thereof, timing and results of exploration 
activities, access to local and international markets for future crude oil 
production, if any and future crude oil prices, the Corporation's ability to 
obtain and retain qualified staff, contractors and personnel and equipment in 
a timely and cost-efficient manner, the political situation and stability in 
jurisdictions in which Oryx Petroleum has licenses, the ability to renew its 
licenses on attractive terms, the Corporation's future production levels, the 
applicability of technologies for the recovery and production of the 
Corporation's oil reserves and resources, the amount, nature, timing and 
effects of capital expenditures, geological and engineering estimates in 
respect of the Corporation's reserves and resources, the geography of the 
areas in which the Corporation is conducting exploration and development 
activities, operating and other costs, the extent of the Corporation's 
liabilities, and business strategies and plans of management and Oryx 
Petroleum`s business partners.

Forward-looking information is subject to known and unknown risks and 
uncertainties which may cause actual results or events to differ materially 
from those anticipated in the forward-looking information and statements if 
the assumptions underlying them prove incorrect, or if one or more of the 
uncertainties or risks described below materializes. The risks and 
uncertainties affecting the Corporation include, but are not limited to, 
imprecision of reserves and resources estimates; ultimate recovery of 
reserves, ability to commercially develop its oil reserves and/or its 
prospective and contingent oil resources; commodity prices; general economic, 
market and business conditions; industry capacity; competitive action by other 
companies; refining and market margins; the ability to produce and transport 
crude oil and natural gas to markets; weather and climate conditions; results 
of exploration and development drilling and other related activities; 
fluctuation in interest rates and foreign currency exchange rates; ability of 
suppliers to meet commitments; actions by governmental authorities, including 
increases in taxes; decisions or approvals of administrative tribunals, 
renewal or granting of licenses; changes in environmental and other 
regulations; international political events; renegotiations of contracts; 
reliance on key managers and personnel; dry wells may lead to a downgrading of 
the Corporation's licenses or contracts or require further funds to continue 
exploration work; future foreign currency exchange rates; risks related to the 
actions and financial circumstances of our agents and contractors, 
counterparties and joint venture partners; political uncertainty, including 
actions by terrorists, insurgent or other groups, or other armed conflict, 
including conflict between states; and expected rates of return. More 
specifically, future production may be affected by exploration success, 
start-up timing and success, facility reliability, reservoir performance and 
natural decline rates, water handling and drilling progress, restrictions on 
ability to access necessary infrastructure, equipment and services, including 
but not limited to, those sourced from third party providers. Capital 
expenditures may be affected by cost pressures associated with new capital 
projects, including labour and material supply, project management, drilling 
rig rates and availability and seismic costs. Risk factors are discussed in 
greater detail in filings made by the Corporation with Canadian securities 

Any forward-looking information concerning prospective exploration, results of 
operations, financial position, production, expectations of capital 
expenditures, cash flows and future cash flows or other information described 
above that is based upon assumptions about future results, economic conditions 
and courses of action are presented for the purpose of providing readers with 
a more complete perspective on Oryx Petroleum's present and planned future 
operations and such information may not be appropriate for other purposes and 
actual results may differ materially from those anticipated in such 
forward-looking information. In addition, included herein is information 
that may be considered financial outlook and/or future-oriented financial 
information. Its purpose is to indicate the potential results of Oryx 
Petroleum's intentions and may not be appropriate for other purposes.

Readers are strongly cautioned that the above list of factors affecting 
forward-looking information is not exhaustive. Although the Corporation 
believes that the expectations conveyed by the forward-looking information are 
reasonable based on information available to it on the date such 
forward-looking information was made, no assurances can be given as to future 
results, levels of activity and achievements. Readers should not place undue 
importance or reliance on the forward-looking information and should not rely 
on the forward-looking information as of any date other than the date 
hereof. Further, statements including forward-looking information are made 
as at the date they are given and, except as required by applicable law, Oryx 
Petroleum does not intend, and does not assume any obligation, to update any 
forward-looking information, whether as a result of new information or 
otherwise. If the Corporation does update one or more statements containing 
forward-looking information, it is not obligated to, and no inference should 
be drawn that it will make additional updates with respect thereto or with 
respect to other forward-looking information. The forward-looking 
information contained in this news release is expressly qualified by this 
cautionary statement.

Reserves and Resource Advisory

Oryx Petroleum's reserves and resource estimates have been prepared and 
audited in accordance with National Instrument 51-101 - Standards of 
Disclosure for Oil and Gas Activities and the Canadian Oil and Gas Evaluation 

Prospective oil resources are those quantities of petroleum estimated, as of a 
given date, to be potentially recoverable from undiscovered accumulations by 
application of future development projects. Prospective oil resources have 
both a chance of discovery and a chance of development. There is no certainty 
that any portion of the prospective resources will be discovered. If 
discovered, there is no certainty that it will be commercially viable to 
produce any portion of the prospective resources.

SOURCE  Oryx Petroleum Corporation Limited 
Craig Kelly Chief Financial Officer Tel.: +41 (0) 58 702 93 23 
craig.kelly@oryxpetroleum.com  Scott Lewis Head of Corporate Finance Tel.: +41 
(0) 58 702 93 52 scott.lewis@oryxpetroleum.com   
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