By John Lee.
ShaMaran Petroleum has announce its financial and operating results for the three and six months ended June 30, 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 6 2013 which is in accordance with the terms of the Atrush Block PSC.
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 total depth of 1,806 meters on June 23, 2013. The well testing program is nearing conclusion with results expected by end of August 2013.
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 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 June 30, 2013 the Company had a cash balance of $28.6 million and working capital of $18.4 million.
Financial and Operating Results for the three and six months ended June 30th 2013
During the three and six months ended June 30, 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 first half principally relates to the general and administrative expenses and share based payments expense incurred in respect of the continuing operations of the Company.
The outlook to the end of the year 2013 is as follows:
The Operator (TAQA) submitted to the KRG for approval a Field Development Plan ("FDP") in May 2013 and discussions will continue with the Ministry of Natural Resources to obtain necessary approvals. In the meantime, work will continue with preparations for the implementation of the Phase 1 development.
The Atrush-3 appraisal well testing program is nearing conclusion with the results expected to be announced by the end of August 2013.
Final processing of the complete 3D seismic survey is expected in the third quarter of 2013. The enhanced data will be used for the development drilling program. The Atrush-4 appraisal/development well is planned to commence drilling in the third quarter 2013. Atrush-4 will be a high-deviation appraisal/development well from the AT-1 drilling pad targeting the undrilled crest of the field.
The Company is currently considering a number of financing initiatives.
As part of its normal business the Company continues to evaluate new opportunities in the MENA region.
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