Mr. Vance Querio reports

ORYX PETROLEUM SECOND QUARTER 2017 FINANCIAL AND OPERATIONAL RESULTS

Oryx Petroleum Corp. Ltd. has released its financial and operational results for the three and six months ended June 30, 2017. All dollar amounts set forth in this news release are in U.S. dollars, except where otherwise indicated.

Second quarter 2017 financial highlights:

• Total revenues of $7.1-million on working interest sales of 168,800 barrels of oil and an average realized sales price of $37.93 per bbl:
  • The corporation has received full payment in accordance with production-sharing contract entitlements for all oil sales into the Kurdistan export pipeline through May, 2017;
• Operating expenses of $4.0-million ($23.89 per bbl) and a negative Oryx petroleum netback (1) of $1.15 per bbl:
  • Lower operating expenses versus first quarter 2017;
• General and administrative expenses of $2.5-million:
  • Unchanged versus first quarter 2017 but higher than second quarter 2016 due to the inclusion of approximately $800,000 of costs for technical support that had been applied to capital projects in periods prior to 2017;
• Net loss of $9.2-million (three cents per common share) versus net loss of $11.4-million (five cents per common share) in second quarter 2016;
• Net cash used in operating activities of $1.2-million versus $900,000 in second quarter 2016. Second quarter 2017 result consists of negative operating cash flow (2) of $2.1-million partially offset by a $900,000 decrease in non-cash working capital;
• Net cash used in investing activities was $10.9-million and includes payments related to drilling and facilities work in the Hawler licence area, seismic processing and interpretation costs in the AGC Central licence, and the settlement of the finance lease obligation related to the Hawler production facilities;
• $57.4-million of cash and cash equivalents as of June 30, 2017.

Operations update:

• Average gross (100 per cent) oil production of 2,900 bbl per day in second quarter 2017:
  • Production impacted by a planned shut-in of the Zey Gawra-1 sidetrack well (Zeg-1st well) for eight days in May in connection with the drilling of the ZAB-1 sidetrack well (Zab-1st well);
  • Average gross (100 per cent) oil production of 2,900 bbl per day in July, 2017;
• Drilling and completion of the Zab-1st well;
• The Zab-1st well was drilled to a measured depth of 2,069 metres and completed in the Cretaceous reservoir in the Zey Gawra field of the Hawler licence area;
  • The well was completed and allowed to flow through a small choke while cleaning up with bottom hole and surface pressures being monitored. During the cleanup flow period that spanned approximately a week, production of the 35-degree API oil was restricted to approximately 350 barrels per day with gas to oil ratio varying from 950 to 1,150 standard cubic feet per barrel and with the water cut varying from 0 to 3 per cent. Initial results indicate that the well has a higher productivity than the Zeg-1st well prior to acid stimulation. The well is currently shut in for a final pressure buildup measurement, and an acid stimulation treatment will be performed within the next few days;
  • Data collected during drilling of the Zab-1st well included measurements of pressure at a series of points in the Zey Gawra Cretaceous reservoir providing a basis for estimating the depths of the gas-oil contact and the free water level in the reservoir. This information, together with well performance data to be acquired over the coming weeks, will provide an improved basis for estimating the maximum efficient rate of withdrawal and ultimate recovery from the Zey Gawra Cretaceous reservoir and, consequently, determining future development plans and estimating oil reserves;
  • The Tertiary reservoir was also evaluated during the drilling of the Zab-1st well. The presence of an oil column was confirmed based on logging and pressure data collected. However, the corporation does not believe the oil column is of sufficient size to warrant drilling targeting the Tertiary reservoir at Zey Gawra in the near term;
• Workovers of the Demir Dagh-8 and Demir Dagh-7 wells in the Cretaceous reservoir:
  • The rig used to drill the Zab-1st well has now moved to the Demir Dagh field to recomplete the Demir Dagh-8 and Demir Dagh-7 wells targeting the Cretaceous reservoir. These operations are expected to be completed in third quarter 2017;
• Preparations for the drilling of additional wells at the Zey Gawra field targeting the Cretaceous reservoir are in progress with drilling now expected to commence in fourth quarter 2017 subject to performance of the existing two producing wells over the coming weeks;
• Fast-track processing of 1,921 square kilometres of 3-D seismic data covering the AGC Central licence area is complete, with full processing and interpretation in progress:
  • Preliminary interpretation of the data is positive with exploration drilling expected to commence in late 2018 or early 2019.

(1) Oryx Petroleum netback is a non-international financial reporting standard measure.

(2) Operating cash flow is a non-IFRS measure.

Liquidity outlook:

• The corporation expects that cash on hand as of June 30, 2017, and cash receipts from net revenues will allow it to finance its forecasted cash expenditures and operating and administrative costs and to meet its obligations through the end of 2018. Capital expenditures beyond those currently forecasted in 2018 will likely require access to additional financing.

Chief executive officer's comment

Commenting today, Oryx Petroleum's chief executive officer, Vance Querio, stated: "During Q2 2017, we maintained fairly stable production and sales. Gross (100 per cent) oil production averaged 2,900 bbl per day in Q2 2017 with all production sold via the export pipeline and payments for export sales through the end of May received in full.

"In recent weeks, we have successfully drilled and completed the Zab-1st well as a producer in the Cretaceous reservoir at the Zey Gawra field. The well is now being prepared for acid stimulation, and we expect to have it on production before the end of August at a rate similar to that of the Zeg-1st well. The rig that was used to drill the Zab-1st well has now been moved to Demir Dagh, where it will complete the workovers of the Demir Dagh-8 and Demir Dagh-7 wells, both targeting the Cretaceous reservoir. Results of these wells are expected in Q3 2017.

"Fast-track processing of the approximately 2,000 square kilometres of 3-D seismic data covering the AGC Central licence area is complete, with full processing and interpretation ongoing and expected to be completed later this year. Initial results are very encouraging with several large prospects identified. In the coming months, we will begin preparations for an exploration drilling program that we expect to commence as early as late 2018. We expect the AGC Central licence to be a very important determinant of our value in the future.

"We have modified our capital program for the second half of 2017 and early 2018. We now plan to drill two rather than three further wells at Zey Gawra. The drilling of the next well targeting the Zey Gawra Cretaceous is now expected in Q4 2017 with spudding of the second well expected in Q1 2018. The third well originally planned to target the Tertiary reservoir at Zey Gawra has been deferred indefinitely. We have also added a workover of the Demir Dagh-7 well to the program.

"In June, we completed the restructuring of our key obligations and a recapitalization of our balance sheet. The agreement with AOG to amend the credit facility's repayment terms was approved by disinterested shareholders and accepted by the Toronto Stock Exchange. We also reached an agreement with the vendor of the Hawler licence to restructure the contingent consideration obligation, and equity subscriptions by AOG and Zeg Oil and Gas in consideration for cash and debt extinguishment have closed. The restructuring of our obligations and the equity subscriptions have provided us with the liquidity and financial flexibility needed to execute our capital program in 2017 and 2018.

"We look forward to implementing our plans for continued appraisal, development and exploration of our core assets."

Selected financial results

Financial results are prepared in accordance with international financial reporting standards, and the reporting currency is U.S. dollars. References in this news release to the group refer to Oryx Petroleum and its subsidiaries. The attached table summarizes selected financial highlights for Oryx Petroleum for the three- and six-month periods ended June 30, 2017, and June 30, 2016, as well as the year ended Dec. 31, 2016.

                                            FINANCIAL HIGHLIGHTS
                                 ($ in millions unless otherwise indicated) 

                                                  Three months ended          Six months ended   Year ended  
                                                        June 30                   June 30           Dec. 31
                                                   2017         2016         2017         2016         2016

Revenue                                             7.1          7.1         15.0          8.3         22.8
                                                -------      -------      -------      -------      -------
Working interest oil production (bbl)           169,100      185,100      340,300      230,000      588,000
Average WI oil production per day (bbl/d)         1,900        2,000        1,900        1,300        1,600
Working interest oil sales (bbl)                168,800      186,000      338,500      239,200      593,300
Average sales price ($ per bbl)                  $37.93       $34.15       $39.94       $31.05       $34.61
                                                -------      -------      -------      -------      -------
Operating expense                                   4.0          3.2          8.3          6.7         12.6
Field production costs ($/bbl) (1)                18.25        13.28        18.71        21.49        16.28
Field netback ($/bbl) (2)                          0.27         3.39         0.80        (6.33)        0.63
Operating expenses ($/bbl)                        23.89        17.37        24.46        28.11        21.28
Oryx Petroleum netback ($/bbl) (3)                (1.15)        3.09        (0.53)       (9.50)       (0.54)
                                                -------      -------      -------      -------      -------
(Loss)                                             (9.2)       (11.4)        (5.1)       (30.8)       (65.7)
(Loss) per Share ($/sh)                           (0.03)       (0.05)       (0.02)       (0.16)       (0.31)
                                                -------      -------      -------      -------      -------

(1) Field production costs represent Oryx Petroleum's working interest share of gross production costs 
and exclude the partner share of production costs carried by Oryx Petroleum.
(2) Field netback is a non-IFRS measure that represents the group's working interest share of oil sales 
net of the group's working interest share of royalties, the group's working interest share of operating
expenses and the group's working interest share of taxes. Management believes that field netback is a 
useful supplemental measure to analyze operating performance and provides an indication of the results
generated by the group's principal business activities prior to the consideration of production-
sharing contract and joint operating agreement financing characteristics, and other income and 
expenses. Field netback does not have a standard meaning under IFRS and may not be comparable with
similar measures used by other companies.
(3) Oryx Petroleum netback is a non-IFRS measure that represents field netbacks adjusted to reflect the
impact of carried costs incurred and recovered through the sale of cost oil during the reporting 
period. Management believes that Oryx Petroleum netback is a useful supplemental measure to analyze the
net cash impact of the group's principal business activities prior to the consideration of other 
income and expenses. Oryx Petroleum netback does not have a standard meaning under IFRS and may not be
comparable with similar measures used by other companies.                                                                                                                                                                                      

Capital expenditure forecast

Oryx Petroleum reforecasted capital expenditures for the second half of 2017 are $16-million, which is a decrease of $13-million versus the previous forecast of $29-million. The decrease reflects the deferral of previously planned drilling at the Zey Gawra field into late 2017 and early 2018 partially offset by the addition of the Demir Dagh-7 workover to the drilling program.

  CAPITAL EXPENDITURE FORECAST

Location             Licence/field/activity        H2 2017 forecast
                                                         $ millions
Kurdistan region     Hawler
                     Zey Gawra drilling                          $8
                     Demir Dagh drilling                          3
                     Other                                        3
                     Total Hawler                                14
West Africa          AGC Central                                  1
                     Other                                        1
                     =======================                     ==
                     Capex total                                 16
                     =======================                     ==

Regulatory filings

This announcement coincides with the filing with the Canadian securities regulatory authorities of Oryx Petroleum's unaudited consolidated financial statements for the three and six months ended June 30, 2017, and the related management's discussion and analysis thereon. Copies of these documents filed by Oryx Petroleum may be obtained on SEDAR and the corporation's website.

About Oryx Petroleum Corp. Ltd.

Oryx Petroleum is an international oil exploration, development and production company focused in Africa and the Middle East. The Oryx Petroleum group of companies was founded in 2010 by the Addax and Oryx Group PLC. Oryx Petroleum has interests in five licence areas, two of which have yielded oil discoveries. The corporation is the operator in three of the five licence areas.

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