CORPORATE PRESENTATION. June 2017

Transcription

1 CORPORATE PRESENTATION June 2017

2 BUILDING A FULL CYCLE E&P COMPANY FOCUSED ON OIL IN ESTABLISHED HYDROCARBON BASINS Key License Areas Founded in 2010 by AOG AOG previously established, developed and sold Addax Petroleum March 2016 strategic investment by Zeg Oil and Gas, a Kurdistan Region of Iraq based company Current Ownership: AOG 61%, Zeg Oil 25%, Other 14% Three oil fields in the Hawler license area (Kurdistan Region of Iraq) 202 MMbbl 2P Oil Reserves (1) with Future Net Revenue (2) of $1.0 billion Pipeline exports commenced March 2016 with full revenue payments received through end of March 2017 Q average gross (100%) oil production of 2,900 bbl/d with planned drilling expected to increase production in 2017 and beyond Appraisal and development in the Hawler license area Near-term focus on Zey Gawra field Five wells planned in 2017 for Zey Gawra (4) and Demir Dagh (1) fields Exploration upside in West Africa Two licenses in Senegal / Guinea Bissau with 3D seismic data on one license area recently acquired Two licences in Congo (Brazzaville) 1) Gross (working interest) proved plus probable oil reserves as at December 31, Gross refers to volumes before applicable PSC deductions. 2) After-tax net present value of related future net revenue using forecast prices and costs assumed by NSAI and a 10% discount rate as at December 31, Gross proved plus probable oil reserves 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, or fiscal regime applicable to each license area. The estimated values disclosed do not represent fair market value. TSX listed (ticker: OXC) 2

3 HAWLER LICENSE (KURDISTAN REGION OF IRAQ) Gross (2) Proved Plus Probable Oil Reserves Future Net Revenue (3) 100% Working Interest Discovery: Oct 2013 Discovery: Feb 2013 Currently producing Field (MMbbl) (MMbbl) (US$MM) Demir Dagh Cretaceous Discovery: Mar 2014 Wells Discovery Completed Appraisal Planned Appraisal Demir Dagh Jurassic 8 5 Zey Gawra Cretaceous Discovery: Dec 2013 Currently producing Banan East Cretaceous Banan West Cretaceous Total ,014 Working Interests 65% Oryx Petroleum (Operator) 20% KEPCO (Kurdistan Regional Government) 15% KNOC (Korean National Oil Corporation) (1) The oil reserves, contingent resources and prospective resources data is based upon an evaluation by NSAI with effective date as at December 31, See material change report dated February 22, 2017 filed on SEDAR. (2) Gross refers to volumes before applicable PSC deductions. (3) After-tax net present value of related future net revenue using forecast prices and costs assumed by NSAI and a 10% discount rate as at December 31, The estimated values disclosed do not represent fair market value. See material change report dated February 22, 2017 filed on SEDAR. Unrisked 2C Gross (100%) Oil Resources - Development Pending of 71 MMbbl (Risked: 64 MMbbl) Appraisal / Exploration potential Unrisked Gross 2C (100%) Oil Resources - Development Unclarified of 145 MMbbl (Risked: 100 MMbbl) Unrisked Best Estimate Gross (100%) Prospective Oil Resources of 171 MMbbl (Risked: 8 MMbbl) Zey Gawra Tertiary reservoir to be further appraised in 1H 2017 Four discoveries with production from the Demir Dagh and Zey Gawra fields (2,900 bbl/d) 3

4 HAWLER LICENSE: FIELD DEVELOPMENT PLAN Zey Gawra (Cretaceous) One well drilled to date with full suite of test, logging, MDT data Light sweet crude (35º API) Matrix and fracture porosity Zey Gawra-1 successfully re-completed in December 2016 and on extended well test Three wells planned for 2017 including at least one horizontal well AAS-2 AAS-1 Ain Al-Safra 220 km 2 Relinquished Area 850 km 2 Demir Dagh (Cretaceous) Four wells currently producing Medium grade crude (22º API average) with very small quantities of gas and H 2 S Matrix and fracture porosity Re-completion of Demir Dagh-8 planned in 2017 with horizontal well development in 2018 Gross (100%) 2P Oil Reserves: 100 MMbbls (1) Gross (100%) 2P Oil Reserves: 117 MMbbls (1) Zey Gawra (Tertiary) No reserves booked One well (ZAB-1) drilled in 1990 s but not tested or completed Re-entry and completion of ZAB-1 completed in late 2016 Flowed water, natural gas, and light oil Evidence of poor zonal isolation Further evaluation planned in 1H 2017 with planned contingent well in late 2017 BAN-2 Zey Gawra 160 km 2 Banan 211 km 2 BAN-1 ZAB-1 ZEG-1 Demir Dagh 197 km 2 DD-5 DD-2 DD-10&11 DD-7 DD-8 DD-4 DD-3&9 Demir Dagh (Jurassic) One producing well for most of 2016 but recently shut-in in December 2016 Light crude with gas and H 2 S treatment required Fracture porosity only Gross (100%) 2P Oil Reserves: 8 MMbbls (1) Banan (Cretaceous) Two wells drilled to date with one DST Medium grade crude similar to Demir Dagh Cretaceous (~20º API) Matrix and fracture porosity Tertiary & Cretaceous Reservoirs Gross (100%) 2P Oil Reserves: 86 MMbbls (1) Jurassic Reservoirs Possible Triassic Reservoirs (1) As at December 31, 2016 per evaluation conducted by Netherland Sewell & Associates, Inc. ( NSAI ). See Material Change Report dated February 22, 2017 filed on SEDAR. Demir Dagh and Zey Gawra producing from Cretaceous, near term focus on Zey Gawra field 4

5 ZEY GAWRA DISCOVERY AND EARLY APPRAISAL ZEG-1 ST Reserves Prospective Resources 81m column 4,800 bbl/d of 35º API Crude ZEG-1 discovery in the Cretaceous in MMbbl Gross (100%) Proved Plus Probable Oil Reserves (1) Light sweet crude (35º API) Matrix porosity similar to Demir Dagh Higher recovery rates than Demir Dagh Full suite of logging, MDT and test data for ZEG-1, 2D seismic Successful sidetrack and completion of ZEG-1 discovery well targeting Cretaceous reservoirs concluded in late 2016 with well on extended well test ZEG-1 ZAB-1 re-entry in Tertiary reservoir concluded in late 2016 but unable to be completed as a producer Well initially drilled in 1990s by Iraq Oil Exploration Company but not tested or completed No reserves currently booked in Tertiary Water, natural gas and small quantity of light oil flowed to surface (2) Evidence of lack of zonal isolation Further evaluation planned in 1H 2017 with contingent well planned for late 2017 (1) As at December 31, 2016 (2) 8 hour test period using 1 inch choke: 9.6 mmscf/d natural gas, 1,120 bbl/d water and 20 bbl/d of 33 API oil. 5

6 ZEY GAWRA APPRAISAL AND EARLY PRODUCTION ZAB-1 ZAB-1-ST ZEG-1 ZEG-C Four wells planned in 2017 / early 2018 ZAB-1 sidetrack to target completion in Cretaceous and to evaluate Tertiary SHIRANISH KOMETAN ZEG-1-ST Est GOC Two new wells targeting Cretaceous including at least one horizontal well QAMCHUQA SARMORD Est FWL One well to target Tertiary reservoir if evaluation indicates sizeable oil column presence ZAB-1 (vertical) ZEG-1 ZEG-B ZAB-1 ST ZEG-B ZAB-1 (vertical) ZAB-1 ST ZEG-C (horizontal) ZEG-C (horizontal) ZEG-1 Top Upper Qamchuqa map Top Upper Qamchuqa map 6

7 DEMIR DAGH FIELD APPRAISAL AND DEVELOPMENT Planned Horizontal Well DD-11 DD-2 DD-10 BAN-1 DD-5 DD-7 DD-H DD-6 DD-8 DD-4 DD-9 DD-3 Ten wells drilled to date Two deep wells to evaluate all reservoirs (DD-2 & 3) Eight shallow wells appraising Cretaceous (DD-4, 5, 6, 7, 8, 9, 10 & 11) Vertical/deviated well designs Six wells completed for production with four wells currently producing DD-2, 4, 6, 7 & 10 in Cretaceous DD-3 in Jurassic DD-2 and DD-3 shut-in due to high water production Re-completion of DD-8 planned in 1H 2017 A successful completion high in the Cretaceous reservoir would provide important validation of horizontal well development Horizontal wells expected to be drilled in

8 HAWLER PRODUCTION FACILITIES Facilities with capacity of 40,000 bbl/d at Demir Dagh commissioned in September 2015 Two trains to accommodate both crude oil with and without H 2 S treatment requirements ~1km tie-in pipeline from production facilities to KRI-Turkey export pipeline 25,000 bbl of storage capacity and 12,000 bbl/d unloading capacity Truck Loading Station (TLS) at Demir Dagh Initial leased processing facilities installed at Zey Gawra (~6,000 bbl/d) in Q with trucking to Demir Dagh for export pipeline entry A more permanent solution contemplates pipeline transport back to facilities at Demir Dagh for processing and export 8

9 KURDISTAN REGION: SUPPLY DYNAMICS ITP 40 & 46 pipelines, 600 & 900 Mbbl/d capacity To Ceyhan KRI - Turkey 24/36 oil pipeline, 700 Mbbl/d capacity Export Sales: Via Turkey by pipeline or truck Pipeline expected to be principal export route going forward Recent KRI exports of oil ~500,000 to 600,000 bbl/d Payments from the KRG to oil exporters largely current since September 2015 and now based on Production Sharing Contracts Realisation referenced to international prices Domestic Sales: Pre-payment for sales Realisations at discount to international prices Limited demand Oryx Petroleum is currently exporting all production by pipeline 9

10 HAWLER NEAR TERM NETBACKS Illustrative Netback ($/bbl) Contractor Netback Realised Price $40.00 $50.00 $60.00 Royalties 10% (4.00) (5.00) (6.00) Net revenue Realised Prices: Export - Pipeline: Brent less $12/bbl with adjustment for API gravity and sulphur content Export - Truck: Brent less $26/bbl (2) Domestic - N/A Cost oil 40% Profit oil Contractor share 28% Contractor Profit oil and Oryx Petroleum capacity building payment assumes R factor <1 Government share 72% Total Contractor (Cost + Profit oil) Less: Opex (1) (7.00) (7.00) (7.00) Contractor Netback Oryx Petroleum Netback Revenue 65% Less: Royalties & Government share of Profit oil 65% (12.71) (15.89) (19.07) Less: Capacity Payment (3) (0.59) (0.74) (0.88) Less: Opex 85% (5.95) (5.95) (6.17) Plus: Carry Recovery (4) Oryx Petroleum After-tax Netback (1) Assumes gross (100%) production of 8,000-9,000 bbl/d (2) Terms of last contract in place in early 2016 (3) 15% of Oryx Petroleum Share of Profit oil (4) Government share of cost oil Normalised Opex to be achieved as production increases $10.00/ bbl+ expected in near term ~$7.00/bbl assuming gross (100%) production of ~10,000 bbl/d Opex and Capex carries Oryx Petroleum carries 20% KRG share Oryx Petroleum carries KRG capex up to $300 million Recoverable from KRG share of cost oil 10

11 AGC SHALLOW & CENTRAL (SENEGAL / GUINEA BISSAU) AGC Central 750 km 2 of seismic obligation in initial 3-year exploration phase 3,150 km 2 licence area in water depths of 100-1,500m Carbonate edge play type similar to SNE-1 discovery identified from seismic data Initial identification of two prospects and one lead Best estimate unrisked gross (100%) prospective oil resources of 367 MMbbl (risked: 11 MMbbl) (1) Seismic commitment before October 2018 Seismic survey and fast track processing completed in early 2017; Full processing / interpretation expected to be completed later in 2017 AGC Central 80% Oryx Petroleum (Operator) 20% AGC AGC Shallow 80% Oryx Petroleum (Operator) 20% AGC AGC Shallow Working petroleum system with two shallow heavy oil discoveries in the 1960s Two deeper light oil play types Seismic amplitude prospects in Maastrichtian Sub-salt related structural traps in Albian Three structures identified to date with two drill ready prospects Best estimate unrisked gross (100%) prospective oil resources of 192 MMbbl (risked: 4 MMbbl) (1) Commitment well before March 2018 (1) Gross (100%) best estimate prospective resources as of December 31, Gross refers to volumes before applicable PSC deductions. See material change report dated February 22, 2017 filed on SEDAR. Significant oil potential in an area with a working petroleum system and recent discoveries in adjoining areas 11

12 HAUTE MER A & HAUTE MER B (CONGO (BRAZZAVILLE)) Haute Mer A Working Interest 20% Oryx Petroleum 45% CNOOC (Operator) 20% CPC 15% SNPC Haute Mer B Working Interest 30.00% Oryx Petroleum 34.62% Total (Operator) 20.38% Chevron 15.00% SNPC Wells Planned Discovery Tested: Feb 2014 Haute Mer A Elephant Discovery in 2013 More resource required to confirm commercial development 2C Unrisked gross (100%) contingent oil resources development unclarified of 31 MMbbl (Risked: 5 MMbbl) (1) Best estimate unrisked gross (100%) prospective oil resources of 168 MMbbl (Risked: 1 MMbbl) Haute Mer B Multiple large prospects near existing discoveries Best estimate unrisked gross (100%) prospective oil resources of 650 MMbbl (Risked: 7 MMbbl) (1) High NPV per barrel in success case 2018 commitment well 2016 commitment well Request for extension of exploration period has been submitted by Operator and is expected to be received (1) Gross (100%) 2C contingent and best estimate prospective resources as at December 31, Gross refers to volumes before applicable PSC deductions. See material change report dated February 22, 2017 filed on SEDAR. Discovery and further exploration for oil adjacent to large producing fields 12

13 2017 CAPITAL EXPENDITURE FORECAST $ Millions Location License/Field Drilling Facilities Kurdistan Region Hawler Seismic & Total 2017 Studies and Other (2) Budget Zey Gawra Demir Dagh Banan Other (2) Total Hawler W. Africa & Corp Various Capex Total Note: 1) The above table excludes license acquisition costs. Totals in rows and columns may not add-up due to rounding 2) Other is comprised primarily of license maintenance costs Key Objectives Achieve production and cash flow levels that should sustain operations by early 2018 Evaluate Zey Gawra Tertiary reservoir Validate horizontal well development plans for Demir Dagh Cretaceous Mature AGC Central exploration license Maintain licenses Hawler Zey Gawra Drilling ZAB-1 sidetrack targeting Cretaceous and evaluating Tertiary Two new wells targeting Cretaceous (including at least one horizontal well) One horizontal well targeting Tertiary (contingent upon evaluation) Zey Gawra Facilities Flowlines and field infrastructure required to support new wells Demir Dagh Drilling Re-entry of Demir Dagh-8 targeting Cretaceous Demir Dagh Facilities Lease payments re Hawler production facilities including full settlement in March 2017 West Africa Seismic processing in AGC Central, PSC costs 13

14 KEY BALANCE SHEET ITEMS (MARCH 31,2017) AND LIQUIDITY OUTLOOK AOG Credit Facility $77 million balance of principal plus accrued interest Interest payable in shares of OXC Currently scheduled to mature in July 2019 Contingent Consideration Payable to vendor of Hawler license area upon a second commercial discovery $76 million balance of principal plus accrued interest $5 million plus accrued interest payable by August 2017 (non contingent) Remainder payable (contingent) in instalments on September 30, of if second commercial discovery before September 30, 2018 Liquidity Outlook Cash on hand at March 31, 2017, proceeds from recent equity cash injection and expected net revenues from sales expected to fund planned capital expenditures, cash operating and administrative costs, and payments under existing obligations through mid

15 POSITIONED FOR GROWTH IN 2017 AND BEYOND Expected Production Ramp-up in the Kurdistan Region of Iraq Q Gross (100%) average oil production of 2,900 bbl/d Commencement of pipeline exports in March 2016 and regular revenue payments paid through March 2017 Near-term focus on Zey Gawra field appraisal Four Zey Gawra wells and one re-completion at Demir Dagh planned in 2017 Potential Resource Addition Medium / Long Term Tertiary reservoirs in Kurdistan Region of Iraq Material light oil prospects in AGC and Congo (Brazzaville) Available liquidity to fund plans through mid-2018 AOG / Zeg Oil partnership provides complementary relationships and skills Demir Dagh (Kurdistan) 15

16 DISCLAIMER This document has been prepared by Oryx Petroleum Corporation Limited ( Oryx Petroleum or the Corporation ) for information purposes only. This document should be read in conjunction with the annual information form of Oryx Petroleum dated March 23, 2017 (the AIF ). Additional information about Oryx Petroleum is available on its website at and Oryx Petroleum s profile at CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Statements that are not reported financial results or other historical information are forward-looking information within the meaning of applicable Canadian securities laws and forward-looking statements within the meaning of applicable United States securities laws (collectively, forward-looking statements ). This presentation includes forward-looking statements regarding Oryx Petroleum and the industry in which it operates, including statements about, among other things, exploration and drilling activities, expectations, beliefs, plans, future oil prices, business and acquisition strategies, opportunities, objectives, prospects, assumptions, including those related to trends, prospects, future events and performance. Sentences and phrases containing or modified by words such as anticipate, plan, continue, estimate, intend, expect, may, will, project, predict, potential, targets, projects, is designed to, strategy, should, believe and similar expressions, and the negative of such expressions, are not historical facts and are intended to identify forwardlooking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward-looking statements should not be read as guarantees of future events, future performance or results, and will not necessarily be accurate indicators of the times at, or by which, such events, performance or results will be achieved, if achieved at all. Forward-looking statements are based on information available at the time and/or management s expectations with respect to future events that involve a number of risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The factors described under the heading Risk Factors in the AIF provide examples of the risks, uncertainties and events that may cause Oryx Petroleum s actual results to differ materially from the expectations it describes in its forward-looking statements. Readers should be aware that the occurrence of the events described in such risk factors could have an adverse effect on, among other things, Oryx Petroleum s business, prospects, operations, results of operations and financial condition. Specific forward-looking statements contained in this presentation include, among others, statements, management s beliefs, expectations or intentions regarding the following: the ability of each of the Corporation and its partners to fund ongoing exploration and meet their respective financing and carry obligations with respect to the license areas of Oryx Petroleum; the performance characteristics and discovery potential of Oryx Petroleum s properties; the Corporation s expectations of current and future production levels; exploration work plans, conceptual development and marketing plans; the reserve and resource potential of Oryx Petroleum s license areas; the political, economic, regulatory and business stability of the jurisdictions in which Oryx Petroleum operates; export pipeline options and export capacity; the Corporation s re-forecasted capital expenditure program and the Corporation s expectations regarding the use of existing capital, its ability to raise capital, develop reserves and resources and to add reserves and resources through exploration, acquisitions and development; the amount, nature, timing and effects of the Corporation s capital expenditures; the Corporation s plans for drilling wells and chance of success; the Corporation s plans for completion or acquisition of seismic data; market prices and supply and demand fundamentals for oil and other commodities; timing and amount of the Corporation s potential future production, forecasts of capital expenditures, net revenues, future development plans and the sources of financing thereof; the Corporation s operating and other costs and expenses; business strategies and plans of management; anticipated benefits and enhanced shareholder value resulting from prospect development and acquisitions; and oil reserves and resources quantities and the discounted present value of future net cash flows from these reserves and resources. Readers are cautioned that the foregoing list of forward-looking statements should not be construed as being exhaustive. In making the forward-looking statements in this presentation, the Corporation has made assumptions regarding: timing and results of exploration activities; the enforceability of the Corporation s production sharing contracts and risk exploration contracts; treatment under the fiscal terms of production sharing contracts, risk exploration contracts, governmental regulatory regimes and royalty laws; the timing and terms of government approvals and the timing and terms of any renewal or extension of any of the Corporation s license areas; the cost of expenditures to be made by Oryx Petroleum; future crude oil prices and prices realised by Oryx Petroleum on oil production sold; the amount of oil production sold domestically in the Kurdistan Region and the amount of oil production sold as export; oil from the Kurdistan Region refining capacity in the local jurisdiction and access to local and international markets for crude oil production; the Corporation s ability to obtain and retain qualified staff and equipment in a timely and cost-efficient manner; the political situation and stability in jurisdictions in which Oryx Petroleum has licenses, including, without limitation, that the recent escalation in violence in Iraq relating to the incursion by the Islamic State in Iraq and Syria (ISIS) will not adversely disrupt the Corporation s production and development activities in the Kurdistan Region; the regulatory, legal and political framework governing the production sharing contracts, risk exploration contracts, royalties, taxes and environmental matters in the jurisdictions in which the Corporation conducts and will conduct its business and the interpretations of applicable laws; the ability to renew its licenses on attractive terms; the Corporation s current and future production levels and the timing and payment mechanism for export oil from the Kurdistan Region; the market for domestic oil sales in the Kurdistan Region and the timing and payment mechanism for such domestic sales in the Kurdistan Region; the applicability of technologies for the recovery and production of the Corporation s oil reserves and resources; ability to gain access to existing facilities or to build necessary facilities to sell oil production; operating costs; availability of equipment and qualified contractors and personnel; future capital expenditures to be made by the Corporation; future sources of funding for the Corporation s capital programs; the Corporation s future debt levels; 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; the impact of increasing competition on the Corporation; the ability of the Corporation to obtain financing and, if obtained, to obtain acceptable terms; and government/state participation in the Corporation s development activities through the exercise of back-in rights. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future events, performance or results, and will not necessarily be accurate indicators of whether or not such events, performance or results will be achieved. Forwardlooking statements are based on information available at the time and/or management s expectations with respect to future events that involve a number of risks and uncertainties. Any forward-looking statements concerning prospective results of operations, financial position, production, expectations of cash flows and future cash flows that are based upon assumptions about future results, economic conditions and courses of action and are presented for the purpose of providing prospective purchasers 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 statements. Actual results could differ materially from those anticipated in or implied by any forward-looking statements, including without limitation, as a result of the risk factors, which are described in detail under Risk Factors in the AIF. Readers should reference the factors discussed under the heading Risk Factors in the AIF. The forward-looking statements included in this presentation are expressly qualified by this cautionary statement and readers are cautioned that any forward-looking statement speaks only as of the date of this presentation. The Corporation does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. If the Corporation does update one or more forward-looking statements, 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 statements. 16

17 DISCLAIMER RESERVES AND RESOURCES ADVISORY The reserves and resources and associated future net revenue information presented herein are estimates only. In general, estimates of oil reserves and resources and the future net revenue therefrom are based upon forward-looking statements and a number of variable factors and assumptions, such as production rates, ultimate reserve recovery, timing and amount of capital expenditures, ability to transport production, marketability of oil, royalty rates, the assumed effects of regulation by governmental and other regulatory agencies and future operating costs, all of which may vary materially from actual results, and for resources, additional variable factors and assumptions such as discovery and commerciality. For those reasons, estimates of the oil reserves and resources attributable to any particular group of properties, as well as the classification of such reserves and resources (based on risk of recovery) and estimates of future net revenues associated with such reserves and resources prepared by different engineers (or by the same engineers at different times) may vary. The actual reserves and resources of Oryx Petroleum may be greater or less than those estimated and such variation may be material. In addition, Oryx Petroleum s actual production, revenues, development, capital and operating expenditures, as applicable, with respect to its reserves and resources will vary from estimates thereof and such variations could be material. Any activities undertaken by Oryx Petroleum to develop or permit the reclassification of its reserves and resources will be subject to the terms of the applicable contractual arrangement. Statements relating to net present value, future net revenues, reserves and resources are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions (including, without limitation, pricing assumptions), that the reserves and resources described exist in the quantities predicted or estimated, and can be profitably produced in the future. Readers should refer to the AIF for information regarding the assumptions related to the reserves and resources reported herein. There is no assurance that forecast price and cost assumptions will be attained and variances could be material. 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 estimated proved plus probable plus possible oil reserves. 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 are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub classified based on project maturity. Contingent oil resources entail additional commercial risk than reserves. 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 an associated 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. The risked prospective oil resources reported in this presentation are risked resources that have been risked for chance of discovery, for chance of development. If a discovery is made, there is no certainty that itwill be developed or, if itis developed, there is no certainty as to the timing or cost of such development. The reserves estimates and evaluation and resource estimates and evaluation contained herein are derived from the NSAI Report which was prepared with reference to NI relying on the COGE Handbook definitions. Reserves and resources provided herein are as at December 31, 2016 and are only valid as of such date. The estimates of reserves and resources and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and resources and future net revenue for all properties, due to the effects of aggregation. The estimated future net revenues contained herein are valid only as at December 31, 2016 and do not necessarily represent the fair market value of Oryx Petroleum s reserves and resources. As used herein, unless otherwise indicated, gross means, in respect of reserves, resources, production, area, capital expenditures or operating expenses, the total reserves, resources, production, area, capital expenditures or operating expenses, as applicable, attributable to either (i) 100% of the license area, field, prospect or lead; or, (ii) the Corporation s working interest in the license area, field, prospect or lead, as indicated, prior to the deductions specified in the applicable production sharing contract, risk exploration contract or fiscal regime for each license area. In addition to the general advisory language above, the below notes qualify certain reserves and resources volumes and other oil and gas information disclosed in this document: : This volume is an arithmetic sum of multiple estimates of reserves or resources, as applicable, 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 or resources, as applicable, and appreciate the differing probabilities of recovery associated with each class as explained above. : All field fluid measurements will require laboratory analysis to confirm results and should be considered preliminary until such analysis has been done. The test results are not necessarily indicative of long-term performance or of ultimate recovery. 17

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