ShaMaran Up on Results

Shares in ShaMaran Petroleum Corp were up 7% on Friday following the announcement of its financial and operating results for the second quarter of 2011

Highlights

  • A major oil discovery in the Atrush Block was announced by the Company on April 13, 2011. The Atrush 1 well flowed at rates totalling over 6,393 bopd of 26.5 API oil from three tests in the middle and upper Jurassic reservoirs and well analysis indicated that the intervals are capable of much higher rates when completed for production. The well was drilled in budget and on time to a total depth of 3,400 meters.
  • Pulkhana 9 was spudded by the Company on April 3, 2011 and a total depth of 2,333 meters was reached on July 23, 2011. Oil indications have been seen in all of the four targeted Pulkhana reservoirs. A comprehensive well testing program which could include up to five tests has commenced and is expected to be completed in early September 2011.
  • The Company’s 100% owned subsidiary ShaMaran Petroleum BV entered into a production sharing contract (“PSC”) on July 27, 2011 in respect of the Taza Block (formerly Block K42) in the Kurdistan Region of Iraq.   ShaMaran holds a 20% working interest in the PSC, and Oil Search Iraq Limited (“OSIL”) is the operator with a 60% working interest in the PSC.  The Kurdistan Regional Government of Iraq (“KRG”) holds a 20% working interest in the PSC with costs carried by ShaMaran and OSIL.
  • The Appraisal Work Program on the Atrush Block has been submitted to the KRG. The program consists of 3D seismic, appraisal wells and studies leading to the possible installation of an Early Production facility in 2012. 3D seismic acquisition operations commenced on the block in July 2011 and planning for the Atrush-2 well is currently in progress.
  • Trading of the common shares of the Company on the NASDAQ OMX First North Exchange (Stockholm) commenced at the market opening on June 22, 2011.
  • Cash proceeds of $CAD 50.4 million ($CAD 49.5 million net of issuance costs) were raised by the Company through a private placement of 56 million common shares at $CAD 0.90 per share which was concluded on May 5, 2011.
  • The Company had net losses of $975,000 and $513,000 for the three and six months ended June 30th, 2011 (2010: $3,430,000 and $2,751,000). The cash balance of the Company was $72.0 million as at June 30th, 2011 (December 31st 2010: $58.7 million).
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