Addition of new acreage and play type to complement AGC Shallow interest

CALGARY, Oct. 16, 2014 /CNW/ – Oryx Petroleum Corporation Limited (“Oryx Petroleum” or the “Group”) has acquired an 85% interest in the AGC Central license located in the joint development offshore area between Senegal and Guinea Bissau (“AGC”).

Highlights:

• 3,150 square kilometre offshore license area in water depths ranging from 100 metres to 1,500 metres
• Carbonate edge play type identified from existing 2D and 3D seismic; similar to play type being pursued by other industry participants offshore Senegal and sharing some common geological features with AGC Shallow
• Oryx Petroleum to hold 85% participating interest and serve as Operator with the remaining 15% interest held by L’Entreprise AGC
• The Production Sharing Contract (“PSC”) has an initial three year exploration phase with a commitment to acquire 750 square kilometres of 3D seismic data

CEO´s Comment

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

“We are excited about expanding our presence in the AGC. The low cost addition of a new play type, one that others are pursuing in Senegal with some recent success, gives us another way to succeed in the AGC. We aim to build a substantial business in the region.”

Signing of Production Sharing Contract

The Group has signed a new PSC covering the AGC Central license area in the joint development offshore area between Senegal and Guinea Bissau. The PSC has been approved by decree from the Haute Autorite, the Presidencies of Senegal and Guinea Bissau, who are responsible for administering oil exploration activities in the AGC.

The license covers 3,150 square kilometres in water depths ranging from 100 metres to 1,500 metres, an area that was previously included in the AGC Profond license area. Previous operators in the AGC Profond license area have focused activities on the deep water portions of the license.

Oryx Petroleum will hold an 85% participating interest and serve as Operator with L’Entreprise AGC holding the remaining 15%. Terms of the Joint Operating Agreement between partners and the PSC largely emulate the terms for the AGC Shallow license area. Notably, L’Entreprise AGC’s share of costs will be carried through exploration and they will have a back-in right for an additional 5% paying interest in the license upon declaration of commerciality.

A signature bonus was paid in conjunction with the signing of the PSC. The PSC includes three exploration periods of three, two and two years. Commitment in the initial three year exploration phase is the acquisition of 750 square kilometres of 3D seismic data.

Play Type

Based on available technical data Oryx Petroleum has identified a carbonate edge play type with potential Cretaceous clastic/carbonate structures.. The play type is similar to plays being pursued in similar water depths in Senegal by other industry participants. The play type also shares some commonalities in terms of a working petroleum system with play types that Oryx Petroleum has identified in the AGC Shallow license area.

AGC Shallow License Area

Oryx Petroleum also holds an 85% participating interest in and serves as Operator of the AGC Shallow license area, a 1,700 square kilometres license area in water depths up to 100 metres. Based on technical data the Group has identified two play types in three structures: sub-salt related structural traps in the Albian and seismic amplitude prospects in the Maastrictian. 3D seismic data has been acquired, processed and analyzed and the Group is finalizing drilling plans with the drilling of the first exploration well expected in the first half of 2015.

ABOUT ORYX PETROLEUM GROUP LIMITED

Oryx Petroleum is an international oil exploration and production company focused in Africa and the Middle East. The Group’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 Group. Oryx Petroleum has interests in seven license areas, two of which have yielded oil discoveries and five of which [the Group believes] are prospective for oil. The Group is the operator or technical partner in five of the seven license areas. Two license areas are located in the Kurdistan Region and the Wasit governorate (province) of Iraq and five 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 Group’s reserves and resources estimates, business strategies 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”, “aim”, “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.

Although Oryx Petroleum believes these statements to be reasonable, the assumptions upon which they are based may prove to be incorrect. For more information about these assumptions and risks facing the Group, refer to the Group`s annual information form dated March 12, 2014 available at www.sedar.com and the Group`s website at www.oryxpetroleum.com. Further, statements including forward-looking information in this news release 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, future events or otherwise. If the Group 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.

SOURCE Oryx Petroleum Corporation Limited