ShaMaran Announces Results

By John Lee.

ShaMaran Petroleum has announced its financial and operating results for the three and nine months ended September 30, 2013. (Unless otherwise stated all currency amounts indicated as “$” in this news release are expressed in thousands of United States dollars):

Highlights

  • The Company announced on October 30, 2013 that its USD 150 million senior secured bond was fully subscribed. Net proceeds from the bond will be used to fund the Company’s future capital expenditures related to the development of the Atrush Block. The bond is expected to close on November 13, 2013.
  • On October 7, 2013 the Company announced that the Kurdistan Regional Government (“KRG”) had approved Phase 1 of the Field Development Plan (“FDP”) for the Atrush Block with an October 1, 2013 effective date for the commencement of the Development Period. The TAQA-operated Atrush Block, located 85 km northwest of Erbil, is planned to have an initial production capacity of 30,000 barrels of gross oil per day (bpd) with first oil expected by early 2015.
  • The Atrush-4 Phase 1 development well spudded on October 20, 2013 with planned total depth (“TD”) of 2,460 meters and an estimated drilling time of 70 days.
  • The Atrush-3 appraisal well, located 6.5 kilometers to the east of the Atrush-2 appraisal well, was spudded on March 25, 2013 and reached TD of 1,806 meters on June 23, 2013 within the potential Phase 2 development area. The well confirmed the extension of the oil bearing BSAM reservoir (Jurassic age Barsarin-Sargelu-Alan-Mus formations), while also confirming lowest known oil at depths consistent with the previous wells. Drill stem tests conducted with hydrocarbons recovered to surface but due to equipment limitations accurate flow rates were unable to be determined. AT-3 has been suspended as a potential future producer.
  • The Company announced on February 4, 2013 an increase of 35% in Best Estimate 2C Contingent Resources (gross) for the Atrush Block, from 465 MMBOE at December 31, 2011 to 627 MMBOE at the end of 2012. The estimates were provided by the Company’s independent qualified resources evaluator, McDaniel & Associates Consultants Ltd., in a Detailed Property Report prepared as at December 31, 2012.
  • On March 12, 2013 the Contractor entities to the Atrush Block PSC were notified by the KRG that it had exercised its option to acquire a 25% Government Interest in accordance with the provisions of the Atrush Block PSC.
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