Oryx Petroleum Announces its Year End 2013 Reserves and Resources - KTEN.com - No One Gets You Closer

Oryx Petroleum Announces its Year End 2013 Reserves and Resources

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SOURCE Oryx Petroleum Corporation Limited

30% Increase in Proved Plus Probable Oil Reserves versus March 31, 2013

CALGARY, Feb. 11, 2014 /CNW/ - Oryx Petroleum Corporation Limited ("Oryx Petroleum" or the "Corporation") today announced its reserves and resources as at December 31, 2013 as evaluated by Netherland, Sewell, and 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 7, 2014 (the "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 NSAI Report.

Highlights of the report for Oryx Petroleum's gross (working interest) volumes as compared to estimates prepared by NSAI as at March 31, 2013 include:

  • 30% increase in proved plus probable oil reserves to 213 million barrels ("MMbbl")
  • 58% increase in the after-tax net present value of future net revenue related to proved plus probable oil reserves using a 10% discount rate to USD $1.3 billion1
  • 12% increase in unrisked best estimate (2C) contingent oil resources to 223 MMbbl and increases of 40% to 847 MMbbl and 6% to 86 MMbbl of unrisked high (3C) and low (1C) estimate contingent oil resources, respectively
  • In the Hawler license area,
    • Zey Gawra discovery resulted in booking of oil reserves
    • Banan Cretaceous and Ain Al Safra Jurassic discoveries resulted in booking of contingent oil resources
    • Reclassification of estimated oil reserves and resources in the Cretaceous from heavy to light/medium oil based on lab analysis (Demir Dagh and, by analogy, Banan) and drilling/testing results (Zey Gawra)
  • In the Haute Mer A license area the Elephant discovery resulted in booking of contingent oil resources in N3 and N5 reservoirs
  • Unrisked best estimate prospective oil resources of 1.2 billion barrels versus 1.4 billion barrels at March 31, 2013
    • 317 MMbbl of new additions and upward revisions versus 306 MMbbl of subtractions due to unsuccessful drilling and negative revisions (excluding subtractions due to the relinquishment of Sindi Amedi license area). 125 MMbbl were moved to reserves and contingent resources categories due to successful drilling and testing.
    • Additions to prospective oil resources include a new prospect in the Haute Mer B license area and new prospective reservoirs in certain prospects in the Hawler and AGC license areas

______________________

1 This estimated value is valid as at December 31, 2013 and does not represent fair market value.

CEO's Comment

Commenting today, Oryx Petroleum's Chief Executive Officer, Michael Ebsary, stated:

"We are very pleased to report that our activities in the last three quarters of 2013 have resulted in sizable increases to our estimated oil reserves and contingent oil resources while maintaining a significant prospective oil resource base. We have been able to book either oil reserves or contingent oil resources in four of five exploration wells during this short period of time, demonstrating our ability to progress our portfolio from pure exploration to appraisal and soon to development and production.  2014 will be even more active than 2013 as we target first production from Demir Dagh and seek to grow our reserves and resource base through our appraisal and exploration drilling program."

Summary Reserves and Resources

The following is a summary of NSAI's evaluation as at December 31, 2013 with comparatives to NSAI's evaluation as at March 31, 2013:

Oil Reserves and Resources and Future Net Revenue Summary Table

  March 31, 2013 December 31, 2013
  Proved Plus Probable Proved Plus Probable
  Gross(5) Oil
(Working Interest)
Gross(5) Oil
(Working Interest)
  Reserves Future Net
Revenue(4)
Reserves Future Net
Revenue(4)
Oil Reserves(1) (MMbbl) (USD $ million) (MMbbl) (USD $ million)
  Iraq        
    Kurdistan Region-Hawler 164 815 213 1,287
  Best Estimate 2C Best Estimate 2C 
  Gross(5) Oil (Working Interest) Gross(5) Oil (Working Interest)
  Resources Future Net
Revenue(4)
Resources Future Net
Revenue(4)
Contingent Oil Resources(2) (MMbbl) (USD $ million) (MMbbl) (USD $ million)
  Iraq        
    Kurdistan Region-Hawler 200 1,451 217 697
  Congo (Brazzaville)        
    Haute Mer A(7) - - 6 -
  Total Contingent Oil Resources 200 1,451 223 697
  Best Estimate Best estimate
  Gross(5) Oil (Working Interest) Gross(5) Oil (Working Interest)
Prospective Oil Resources(3) Unrisked Risked Unrisked Risked
  Iraq (MMbbl) (MMbbl)
    Kurdistan Region-Hawler 321 107 238 50
    Kurdistan Region-Sindi Amedi 110 8 -(8)
-(8)
    Wasit Province-Wasit 404 77 404 78
  Nigeria-OML 141 153 42 67 10
  AGC-AGC Shallow 243 31 267 38
  Congo (Brazzaville)        
    Haute Mer A 56 12 31 4
    Haute Mer B 104 23 160 31
Total Prospective Oil Resources(6) 1,391 299 1,167 209

1)     The oil reserves data is based upon evaluations by NSAI, with an effective date as at March 31, 2013 and December 31, 2013, as indicated. Volumes are based on commercially recoverable volumes within the life of the production sharing contract.
2)     The contingent oil resources data is based upon evaluations by NSAI, and the classification of such resources as "contingent oil resources" by NSAI, with effective dates as at March 31, 2013 and December 31, 2013, as indicated. The figures shown are NSAI's best estimate using deterministic methods. Once all contingencies have been successfully addressed, the probability that the quantities of contingent oil resources actually recovered will equal or exceed the estimated amounts is 50% for the best estimate. Contingent oil resources estimates are volumetric estimates prior to economic calculations.
3)     The prospective oil resources data is based upon evaluations by NSAI, and the classification of such resources as "prospective oil resources" by NSAI, with effective dates as at March 31, 2013 and December 31, 2013, as indicated. The figures shown are NSAI's best estimate, using a combination of deterministic and probabilistic methods and are dependent on a petroleum discovery being made. If discovery is made and development is undertaken, the probability that the recoverable volumes will equal or exceed the risked estimated amounts is 50% for the best estimate. Prospective oil resources estimates are volumetric estimates prior to economic calculations.
4)     After-tax net present value of related future net revenue using forecast prices and costs assumed by NSAI and a 10% discount rate. Gross proved plus probable oil reserves estimates and gross contingent oil resource estimates used to calculate future net revenue are estimated based on economically recoverable volumes within the development/exploitation period specified in the production sharing contract, risk exploration contract or fiscal regime applicable to each license area. The estimated values disclosed do not represent fair market value.
5)     Use of the word "gross" to qualify a reference to reserves or resources means, in respect of such reserves or resources, the total reserves or resources prior to the deductions specified in the production sharing contract, risk exploration contract or fiscal regime applicable to each license area.
6)     Individual numbers provided may not add to total due to rounding.
7)     An economic evaluation has not been performed by NSAI on the contingent oil resources in Haute Mer A because the field development plan is still under consideration.
8)     The Sindi Amedi license area was relinquished in October 2013.

The NSAI Report reflects information accumulated since March 31, 2013 through the activities conducted by the Corporation and its partners, including:

?     the drilling, testing and post drill analysis of two exploration wells (AAS-1, ZEG-1) and data accumulated from the early stages of drilling of the BAN-1 exploration well in the Hawler license area;

?     the acquisition and processing of additional 2D seismic data in the Hawler license area;

?     the drilling of the E-1 and H-1 exploration wells in the Haute Mer A license area;

?     the acquisition and processing of 3D seismic data in the AGC Shallow license area; and

?     post-drill analysis and studies of the DD-2 exploration well in the Hawler license area and the DIL-1 exploration well in the OML 141 license area, following completion of drilling in Q1 2013.

The following is a discussion of changes in estimated volumes as at December 31, 2013 for each of the license areas versus the reserves and resources data effective as at March 31, 2013 contained in the report prepared by NSAI dated April 12, 2013.

Kurdistan Region of Iraq - Hawler License Area(9)

(MMbbl)   March 31, 2013 December 31, 2013
               
Oil Reserves(1)   Gross(4) Oil (Working Interest) Gross(4) Oil (Working Interest)
  Oil Type Proved Proved
Plus
Probable
Proved Plus
Probable
Plus
Possible(7)
Proved Proved
Plus
Probable
Proved Plus
Probable
Plus
Possible(7)
Demir Dagh              
     Cretaceous Light/Med(6) 59 164 624 57 153 622
     Jurassic (Adaiyah & Mus) Light/Med - - - 0 14 127
Zey Gawra              
     Cretaceous Light/Med(6) - - - 23 46 106
               
Total Reserves(5)
? 59 164 624 80 213 855
       
    Unrisked Gross(4) Oil (Working Interest) Unrisked Gross(4) Oil (Working Interest)
Contingent Oil Resources(2)   1C 2C 3C 1C 2C 3C
               
Demir Dagh              
     Cretaceous Light/Med(6) 72 157 389 68 148 411
     Jurassic (Adaiyah & Mus) Light/Med 1 14 132 - - -
     Jurassic (Naok-Sargelu) Light/Med 7 28 86 7 28 85
Banan              
     Cretaceous Light/Med(6) - - - 3 26 286
Ain Al Safra              
     Jurassic (Alan/Mus/Adaiyah) Heavy - - - 5 14 43
               
Total Contingent Resources(5)   81 200 607 84 217 825
               
    Best Estimate Best Estimate
    Gross(4) Oil (Working Interest) Gross(4) Oil (Working Interest)
    Unrisked Risked(8) Unrisked Risked(8)
Prospective Oil Resources(3)   (MMbbl) (MMbbl)
  Demir Dagh              
   Jurassic (Butmah) Light/Med 15 3 15 3
   Triassic (Kurra Chine) Light/Med 17 3 17 3
Zey Gawra          
   Tertiary (Pila Spi) Heavy - - 7 2
    Cretaceous Light/Med(6) 11 4 - -
   Jurassic & Triassic   Light/Med 4 1 14 5
  Banan          
    Tertiary (Pila Spi) Heavy - - 111 22
    Cretaceous Light/Med(6) 97 50 - -
    Jurassic & Triassic Light/Med 30 16 42 8
  Ain Al Safra          
    Cretaceous Heavy 109 21 - -
    Jurassic & Triassic Light/Med 38 7 32 6
           
Total Prospective Resources(5)   321 107 238 50

1)     The oil reserves data is based upon evaluations by NSAI, with effective dates as at March 31, 2013 and December 31, 2013 as indicated. Volumes are based on commercially recoverable volumes within the life of the production sharing contract. Proved reserves as at December 31, 2013 consist of proved developed non-producing and proved undeveloped reserves.  All proved reserves as at March 31, 2013 are classified as proved undeveloped reserves.
2)     The contingent oil resources data is based upon evaluations by NSAI, and the classification of such resources as "contingent oil resources" by NSAI, with effective dates as at March 31, 2013 and December 31, 2013, as indicated. The figures shown are NSAI's low, best and high estimates using  deterministic methods. Once all contingencies have been successfully addressed, the probability that the quantities of contingent oil resources actually recovered will equal or exceed the estimated amounts is 90% for the low estimate, 50% for the best estimate and 10% for the high estimate. Contingent oil resources estimates are volumetric estimates prior to economic calculations.
3)     The prospective oil resources data is based upon evaluations by NSAI, and the classification of such resources as "prospective oil resources" by NSAI, with effective dates as at March 31, 2013 and December 31, 2013, as indicated. The figures shown are NSAI's best estimate, using a combination of deterministic and probabilistic methods and are dependent on a petroleum discovery being made. If discovery is made and development is undertaken, the probability that the recoverable volumes will equal or exceed the risked estimated amounts is 50% for the best estimate. Prospective oil resources estimates are volumetric estimates prior to economic calculations.
4)     Use of the word "gross" to qualify a reference to reserves or resources means, in respect of such reserves or resources, the total reserves or resources prior to the deductions specified in the production sharing contract.
5)     Individual numbers provided may not add to total due to rounding.
6)     Estimated oil reserves, contingent oil resources and prospective oil resources in Cretaceous classified as heavy oil as at March 31, 2013 were reclassified to light/medium oil based on lab analysis (Demir Dagh and, by analogy, Banan) and drilling and testing results (Zey Gawra).
7)     This volume is an arithmetic sum of multiple estimates of proved plus probable plus possible reserves, which statistical principles indicate may be misleading as to volumes that may actually be recovered. Readers should give attention to the estimates of individual classes of reserves and appreciate the differing probabilities of recovery associated with each class as explained under the heading "Reserves and Resources Advisory".
8)     These are partially risked prospective resources that have been risked for chance of discovery, but have not been risked for chance of development. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development.
9)     Oryx Petroleum has a 65% working interest in the Hawler license area.

Demir Dagh

Estimated volumes in the Lower Jurassic Adaiyah & Mus reservoirs, where oil was successfully flowed during testing of the DD-2 exploration well, were reclassified from contingent oil resources to oil reserves based on the Corporation's development plan to include facilities to process the crude from such reservoirs.  Estimated volumes in the Cretaceous were reclassified from heavy oil to light/medium oil based on post drilling lab analysis.

The Corporation has recently re-completed the DD-2 well and appraisal wells DD-3 and DD-4 are in progress. A third appraisal well, DD-5, is expected to be spudded in the near future. Construction of an early production facility is in progress and first production is expected to commence in Q2 2014. Development drilling is planned throughout 2014.

Zey Gawra

Estimated volumes attributable to Zey Gawra were increased and reclassified to oil reserves based on the successful testing of the ZEG-1 exploration well. Notably volume estimates were increased in all reservoirs and crude oil in the Cretaceous, previously thought to be heavy oil, was reclassified as light/medium oil as samples collected during testing were measured at 35° API gravity. Based on observations during drilling ZEG-1 estimated volumes in the Tertiary were added to prospective oil resource volumes. The Corporation plans to drill an appraisal well targeting Zey Gawra in the second half of 2014.

Banan

Estimated volumes attributable to Banan were increased and reclassified based on data available to NSAI as at December 31, 2013 from the drilling of the BAN-1 exploration well and initial interpretation of the 2D seismic data covering the extended portion of the Hawler license area. Drilling data and observations from the BAN-1 exploration well were available as at December 31, 2013 only for the Tertiary and Cretaceous. Based on such data and observations and analogies with the DD-2 exploration well, estimated volumes for the Cretaceous were booked as contingent oil resources and prospective oil resource volumes were estimated for the Tertiary. Notably the initial interpretation of the new 2D seismic data confirmed that the crest of the Banan structure is significantly updip of the BAN-1 drilling location. This is reflected in the variation in volumes booked for low, best and high estimate contingent oil resources in the Cretaceous for Banan.  A successful flow test of the BAN-1 well in the Cretaceous and the drilling of a successful crestal appraisal well could potentially result in a change in volume and classification of the contingent oil resources currently attributable to the Banan structure. Prospective oil resource estimates for the Jurassic and Triassic as at March 31, 2013 were adjusted to reflect seismic data covering the extension of the license area. An appraisal well targeting the Banan structure nearer to the crest of the structure is planned for the second half of 2014.

Ain Al Safra

Estimated volumes attributable to Ain Al Safra were adjusted and reclassified based on the drilling and testing of the AAS-1 exploration well. Volumes attributable to the Alan, Mus and Adaiyah reservoirs in the Lower Jurassic were booked as contingent oil resources and reclassified from light/medium oil to heavy oil based on the flow test results from these reservoirs. Estimated prospective oil resource volumes attributable to the Lower Jurassic Butmah reservoir and the Triassic Kurra Chine reservoir, which were not able to be successfully tested due to operational issues but where there were indications of hydrocarbons, were adjusted to reflect their potential. All Cretaceous volumes were written off as the Cretaceous reservoirs were water bearing. The Corporation is optimistic about the potential at Ain Al Safra. An appraisal well targeting Ain Al Safra is planned for the second half of 2014.

Congo (Brazzaville)

Haute Mer A

Estimated volumes attributable to prospects and leads in the Haute Mer A license area were adjusted based on data available as at December 31, 2013 from the drilling of the E-1 and H-1 exploration wells targeting the Elephant and Horse prospects, respectively. The E-1 exploration well encountered hydrocarbons but had not been tested as at December 31, 2013. As such the estimated volumes attributable to the Elephant discovery have been recalibrated and some estimated prospective oil resource volumes as at March 31, 2013 classified as contingent oil resources. The Corporation and its partners will determine next steps following the completion of the E-1 testing program. The H-1 well failed to encounter hydrocarbons in the primary Tertiary target. Oryx Petroleum has a 20% working interest in the Haute Mer A license area.

Haute Mer B

Unrisked best estimate gross (working interest) prospective oil resources attributable to the prospects and leads identified in the Haute Mer B license area increased by 55%. There were no changes to estimated prospective oil resources attributable to the prospects and leads identified in the Haute Mer B license area that were included in the NSAI Report as at March 31, 2013. However, based on discussions with the operator of the license area the Loubossi prospect was added to prospective oil resources. NSAI estimates that the Loubossi prospect contains unrisked best estimate gross (100%) prospective oil resources of 189 MMbbl (risked: 24 MMbbl) of light/medium oil. The first exploration well in Haute Mer B will likely target the Loubossi prospect in 2014. Oryx Petroleum has a 30% working interest in the Haute Mer B license area.

AGC - AGC Shallow

Unrisked best estimate gross (working interest) prospective oil resources attributable to the AGC license area increased by 10%. In 2013 the Corporation started the processing of 3D seismic data acquired in 2012. Based on this seismic data and other studies two leads were eliminated and potential Maastrictian plays and associated potential volumes were identified at Dome Gea and Dome Iris. With the addition of the Maastrichtian potential the first exploration well to be drilled by the Corporation in the license area, scheduled for the second half of 2014, is more likely to target the Dome Iris structure rather than the Dome Flore structure which was previously thought to be the first target. NSAI estimates that the Dome Iris Albian and Maastrichtian prospects contain unrisked best estimate gross (100%) prospective oil resources of 117 MMbbl (risked: 17 MMbbl). Oryx Petroleum has a 80% working interest in the AGC Shallow license area (assuming the AGC exercises its back-in right).

Nigeria - OML 141

Estimated volumes attributable to the OML 141 license area declined reflecting the results of the DIL-1 exploration well and the subsequent re-evaluation of identified prospects in the license area. Oryx Petroleum has a 38.67% working interest in the OML 141 license area.

Wasit Province of Iraq

There were no changes to estimated volumes or classifications in the NSAI Report for the previously identified leads in the Wasit Province reflecting the lack of activity in the license area in 2013. Oryx Petroleum has a 40% working interest in the Wasit license area, assuming the Wasit Provincial Government exercises its back-in right.

After-Tax Net Present Values

Proved Plus Probable Oil Reserves

The after-tax net present value of the future net revenues attributable to the Corporation's gross (working interest) proved plus probable oil reserves increased by 58%. The increase reflects higher volumes resulting primarily from the Cretaceous discovery at Zey Gawra, slightly higher assumed oil prices, an accelerated production profile and development cost assumptions more closely reflecting the Corporation's updated development plan.

Best Estimate Contingent Oil Resources

The after-tax net present value of the future net revenues attributable to the Corporation's gross (working interest) best estimate contingent oil resources located in the Hawler license area decreased by 52%. The decrease reflects higher estimated transportation costs, a production profile and development cost assumptions for volumes attributable to the Cretaceous at Demir Dagh more closely reflecting the Corporation's updated development plans and development costs for volumes attributable to Banan and Ain Al Safra that are higher on a per barrel basis due to additional facilities required to produce from these two new discoveries. These negative factors are slightly offset by an overall increase in volumes.

ABOUT ORYX PETROLEUM CORPORATION LIMITED

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, two of which have yielded oil discoveries and four of which are prospective for oil. The Corporation 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 (Brazzaville). Further information about Oryx Petroleum is available at www.oryxpetroleum.com or under Oryx Petroleum's profile at www.sedar.com.

Reader Advisory Regarding Forward-Looking Information

Certain statements in this news release constitute "forward-looking information", including statements related to the Corporation's reserves and resources estimates and potential, drilling plans, development plans and schedules and chance of success, results of exploration activities, future drilling of new wells, ultimate recoverability of current and long-term assets, possible commerciality of our projects, future expenditures, and statements that contain words such as "may", "will", "could", "should", "anticipate", "believe", "intend", "expect", "plan", "estimate", "potentially", "project", 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 net future revenue, 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, forecasts of capital expenditures and the sources of financing thereof, timing and results of exploration activities, 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 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, and business strategies and plans of management.

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 commissions.

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 Resources Advisory 

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

Proved oil reserves are those reserves which are most certain to be recovered. There is at least a 90% probability that the quantities actually recovered will equal or exceed the estimated proved oil reserves. Probable oil reserves are those additional reserves that are less certain to be recovered than proved oil reserves. There is at least a 50% probability that the quantities actually recovered will equal or exceed the sum of the estimated proved plus probable oil reserves. Possible oil reserves are those additional reserves that are less certain to be recovered than probable oil reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible oil reserves. Each of the reserve categories may be divided into developed and undeveloped. The reserves disclosed in this news release have been classified as developed non-producing and undeveloped.

Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (e.g., when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirement of the reserves category (proved, probable, possible) to which they are assigned.

Contingent oil resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. Contingent oil resources entail additional commercial risk than reserves and adjustments for commercial risks have not been incorporated in the summaries of contingent oil set forth in this news release. There is no certainty that it will be commercially viable to produce any portion of the contingent oil resources. Moreover, the volumes of contingent oil resources reported herein are sensitive to economic  assumptions, including capital and operating costs and commodity pricing.

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. Prospective oil resources entail more commercial and exploration risks than those relating to oil reserves and contingent oil resources. 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.

Use of the word "gross" to qualify a reference to reserves or resources means, in respect of such reserves or resources, the total reserves or resources prior to the deductions specified in the production sharing contract, risk exploration contract or fiscal regime applicable to each license area. Reference to 100% indicates that the applicable resources are volumes attributed to the prospect as a whole and do not represent Oryx Petroleum's working interest in such resources.

For details regarding the risk factors affecting the Corporation and the assumptions relied upon by the Corporation, refer to the Corporation's Information Form dated December 19, 2013 (the "IF") and/or the Corporation's current annual information form, as applicable.  The Corporation will file an annual information form for the year ended December 31, 2013 on or before March 31, 2014, which will supersede the IF.

 

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