By John Lee.
Shares in ShaMaran Petroleum were trading down 10 percent on the Vancouver stock exchange, following the announcement of its financial and operating results for the three months ended March 31, 2015:
- Implementation of the 30,000 bopd Atrush Phase 1 Production Facility is in progress. Construction has continued on foundations for the individual units and the main production modules for the facility are being fabricated.
- The Atrush-3 appraisal well flowed with a maximum oil rate of 4,900 bopd of 14° API oil using an electrical submersible pump during testing conducted in January 2015 in connection with well re-entry operations. The well was originally drilled in 2013.
- The DQE#30 workover rig has been contracted for mobilisation in the second quarter of 2015 for testing and completion of Chiya Khere-8 ("CK-8") and Chiya Khere-5 ("CK-5") and for completion of the previously tested Atrush-2 ("AT-2") and Atrush-4 ("AT-4") producers.
- On March 12, 2015 the Company reported Atrush Block gross 2P reserve estimates of 61 MMbbls (2013: 58 MMbbls) as well as Atrush Block gross contingent resource estimates of 310 MMboe 2C (2013: 404 MMboe) as of December 31, 2014.
- ShaMaran raised funds of $59.1 million (net of transaction costs) through the issuance of an aggregate of 754,214,990 common shares of the Company in February 2015. The shares were issued further to an offering of rights to existing shareholders of the Company to purchase shares of ShaMaran at an exercise price of CAD 0.10 per share.
Chris Bruijnzeels, President and CEO of ShaMaran, commented:
"Atrush is progressing to first oil but the current situation in Kurdistan is challenging and the progress to date is slower than expected.
"As a result there is the potential for delay in first oil and a consequent reduction in forecast 2015 expenditure."