ShaMaran Falls on Results

Outlook

The outlook to the end of the year 2013 is as follows:

Atrush Block

The Operator (TAQA) submitted to the KRG for approval a Field Development Plan ("FDP") on May 7, 2013 which is, in accordance with the terms of the Atrush Block PSC, within 180 days of the Declaration of Commercial Discovery made November 7, 2012.

The Atrush-3 appraisal well was spudded March 25, 2013 with a planned total depth of 1,700 meters. The well is located approximately 5km east of the Atrush-2 well and is an important step out from the previous two Atrush wells. In particular, the well is targeting the Oil Water Contact / Free Water Level in the reservoir section.

There are plans to drill Atrush-4 in 2013 and commence drilling Atrush-5. Technical discussions on the final location of these wells are currently underway.

The 3D seismic acquisition program which covered the entire Atrush block and adjoining Swara Tika discovery in the Sarsang Block was completed on August 11, 2012. Final processing of the complete 3D seismic survey is expected in the second quarter of 2013. Further processing is expected during 2013 with the specific purpose on enhancing the data for the development drilling program.

The Company is currently considering a number of financing initiatives.

(Sources: ShaMaran, Yahoo!)

(Picture: ShaMaran President and CEO, Pradeep Kabra)