ShaMaran Petroleum has announced its financial and operating results for the year ended December 31, 2015. Unless otherwise stated all currency amounts indicated as "$" in this news release are expressed in thousands of United States dollars.
Construction of the 30,000 bopd Atrush Phase 1 Production Facility ("Production Facility") is in progress. Substantially all equipment has been delivered to site and has been installed. Construction and erection of pipe racks is substantially complete.
Pipe fabrication and welding is progressing. Pulling and terminating of electrical and instrument cable is ongoing and instrumentation is being installed. Based on progress to date, commissioning of the Production Facility is targeted for the second quarter of 2016, with first oil production to follow in mid 2016.
Work on the dedicated feeder pipeline to be constructed between the Production Facility and the tie-in point on the main export pipeline is progressing. The pipeline contractor has mobilised and work on the right of way for the pipeline section within the Atrush Block is in progress. Pipeline installation work is scheduled to start towards the end of the first quarter of 2016. The pipeline is expected to be completed in time for the targeted first oil production date.
The Operator plans to complete the Atrush-2 and Atrush-4 wells prior to first production. Four producing wells, all equipped with ESPs, are planned to be available for production at start up.
Chris Bruijnzeels, President and CEO of ShaMaran, commented, "We are very pleased with the progress made. Despite adverse weather and a prolonged closure of the Turkey-Kurdistan border, the facilities construction project remains on schedule for commissioning in the second quarter of 2016. Pipeline work has started and is scheduled to be completed prior to first oil and will also depend on progress being made on the section outside the Atrush Block for which the Kurdistan Regional Government is responsible."
FINANCIAL AND OPERATING RESULTS FOR THE YEAR ENDED DECEMBER 31, 2015
During the reporting period 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 Company reports a net loss of $252.9 million in 2015 which was primarily driven by a non cash impairment loss on the Company's oil and gas assets as well as by routine general and administrative expenses, share based payment expenses and finance cost, the substantial portion of which was expensed borrowing costs on the Company's senior secured bonds. These charges have been offset by interest income on cash held in short term deposits and by foreign exchange gains.
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