Cash proceeds of $CAD 51.0 million were raised by the Company through a private placement of 127.5 million common shares at $CAD 0.40 per share which was concluded on November 15, 2011. A 4% finders’ fee is payable in cash on a portion of the private placement.
The Company had net losses of $2,810,000 and $3,323,000 for the three and nine months ended September 30th, 2011 (2010: $750,000 and $3,501,000). The cash balance of the Company was $28.6 million as at September 30th, 2011 (December 31st 2010: $58.7 million).
Outlook
The outlook for the remainder of the year 2011 for the four blocks which the Company holds interests in Kurdistan is as follows:
Atrush Block
3D seismic is currently in progress and operations are expected to continue until the winter weather window closes operations in the high mountains for 2011. The Atrush-2 well location is under construction and operator, GEP, is tendering for a rig that can commence drilling operations in Q2 2012.
Pulkhana Block
The geological sidetrack and openhole testing of the Shiranish & Balambo formations in Pulkhana 9 should be completed in December, and the rig moved drilling Pulkhana-10. The workover operations on Pulkhana-8 should be completed. Planning for Pulkhana-11 will commence.
The Company will progress with the feasibility study and design for the Pulkhana Early Production Facility ("EPF") planned to be installed in 2012 using information gathered from current operations.
Arbat Block
Construction of the Arbat-1 well location will commence and the design for the well finalized. The ongoing infill 2D seismic should be completed by year end with data processing initiated.
Taza Block (Formerly Block K42)
Well planning for the Taza exploration well will continue following approval of the surface location. Civil engineering works for access road and the well location are under preparation.
New Ventures
As part of its normal business the Company is pursuing new opportunities in the region.
Please click here to see the full results.
(Source: ShaMaran)
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