By John Lee.
Shares in ShaMaran Petroleum were down as much as 6 percent this morning following the announced of its financial and operating results for the three months ended March 31, 2013. (Unless otherwise stated all currency amounts indicated as "$" in this news release are expressed in thousands of United States dollars).
- A Field Development Plan for the Atrush Block was submitted for approval to the KRG on May 7, 2013 which is in accordance with the terms of the Atrush Block PSC.
- The Atrush-3 appraisal well, located five kilometers to the east of the Atrush-2 appraisal well, was spudded on March 25, 2013 with a planned total depth of 1,700 meters.
- The Company announced on February 4, 2013 an increase of 35% in Best Estimate 2C Contingent Resources (gross) for the Atrush Block, from 465.6 MMBOE at December 31, 2011 to 627.3 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 Kurdistan regional Government ("KRG") that it had exercised its option to acquire a 25% Government Interest in accordance with the provisions of the Atrush Block PSC.
- At March 31, 2013 the Company had a cash balance of $35.3 million and working capital of $26.7 million.
Financial and Operating Results for the three months ended March 31st, 2013
During the three months ended March 31, 2013 the Company continued its appraisal and development campaign in respect of the Atrush petroleum property located in the Kurdistan Region of Iraq which constitutes the continuing operations of the Company. Atrush currently generates no revenues. The net loss in the quarter principally relates to the general and administrative expenses incurred in respect of the continuing operations of the Company.