ShaMaran Posts Loss In First Quarter

ShaMaran Petroleum has announced its financial and operating results for the three months ended March 31, 2012:


  • The Appraisal Work Program and Budget on the Atrush Block has been approved by the KRG. The Program consists of 3D seismic and a number of appraisal wells and studies.
  • 3D seismic acquisition on the Atrush Block is in progress and on schedule to be completed by the end of June 2012. Preparations for the Atrush-2 appraisal well are near complete and well spud is expected by end of May 2012. Planning for an Early Well Test facility and a third appraisal well is also underway.
  • Location construction and contracting is on schedule for a June 2012 spud of the Taza-1 exploration well. The Romfor-101 drilling rig has been contracted to drill the well. The well is targeting the proven regional Tertiary reservoirs of the Miocene Jeribe formation which is confirmed as oil-bearing and highly productive at the on trend Sarqala-1 well, the Miocene Euphrates formation and the Oligocene Kirkuk Group.
  • The Company signed final binding agreements with the KRG in January 2012 to relinquish the 60% working interests previously held in each of the Arbat and Pulkhana Production Sharing Contracts (“PSCs”). An amount of $25 million was paid in January 2012 to the KRG as relinquishment fees and the agreements relieve the Company of any further obligations under these PSCs. Disappointing testing results from the Pulkhana 9 well led the Company to this decision.
  • In February 2012 the Company received a Detailed Property Report (“the Report”) from its independent qualified resources evaluator, McDaniel & Associates Consultants Ltd. The Report is as at December 31, 2011 and includes 124,782 Mboe as best estimate of Gross Estimated Contingent Resources and 87,910 Mboe as the unrisked best estimate of Gross Estimated Prospective Resources net to ShaMaran for the Company's two assets. These estimates are exclusive of amounts relating to the Pulkhana and Arbat Blocks which were relinquished in January 2012.
  • On April 2, 2012 the Company secured short term financing of $10 million from two related parties.
  • The Company reported a net loss of $26.1 million for the quarter ended March 31, 2012 (2011: $0.5 million net income). The cash balance of the Company was $5.7 million as at March 31, 2012 (December 31, 2011: $49.1 million).
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