VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 08/23/12 — ShaMaran Petroleum Corp. (“ShaMaran” or the “Company”) (TSX VENTURE: SNM)(OMX: SNM) is pleased to announce its financial and operating results for the three and six months ended June 30, 2012.
Highlights
Financial and Operating Results for the three and six months ended June 30, 2012
During the first six months ended June 30, 2012 the Company continued its exploration and appraisal campaign in respect of the Taza and Atrush Block petroleum properties in Kurdistan constituting the continuing operations of the Company. These properties currently generate no revenues. The net loss in the first half of 2012 was driven by one-time relinquishment fees totaling $25 million which were relating to the relinquishment of the Pulkhana and Arbat Block PSCs paid to the KRG in January 2012.
The cash position of the Company decreased by $43.1 million during first six months of 2012. The main reasons for the decrease in the cash position was the payment to the KRG of $25 million in relinquishment fees and the outflow of funds to decrease accounts payable and accrued expenses by $19.7 million. In addition the Company spent $8.4 million on its exploration and appraisal activities in Kurdistan and received $10 million in short term financing on April 2, 2012.
Outlook
The outlook for the year 2012 is as follows:
Atrush Block
The Atrush-1 appraisal well was drilled to planned total depth of 1,750 meters after 48 days on July 10, 2012, ahead of schedule. A comprehensive well testing program which includes an open hole test of the Butmah formation and four further cased hole tests over the main reservoir section are currently in progress. Logging and well test results will be reported upon completion of testing. Following completion of operations on Atrush-2 the drilling rig will be moved to Atrush-1 for a completion workover of this well which was drilled last year. The location and timing of the Atrush-3 appraisal well will be determined once the results of the Atrush-2 are available with plans to commence drilling in the first half of the year 2013.
The 3D seismic acquisition program which will provide coverage over a total of 310 square kilometers was completed on August 11, 2012. The processing of the complete 3D seismic survey (Post Stack Time Migration) is expected at the end of the current year.
Results of tendering for the Early Well Test Facility (EWTF) will be announced in August 2012 along with an updated timetable for installation and commissioning will be announced in the third quarter of 2012. EWTF installation and implementation work is expected to commence before year end 2012 and first production is forecasted in the first half of the year 2013.
New Ventures
As part of its normal business the Company continues to evaluate new opportunities in the region.
About ShaMaran
ShaMaran Petroleum Corp. is a Kurdistan focused oil development and exploration vehicle with an indirect interest in the Atrush Block located in the region. This project is nearby and on trend with existing fields and recent discoveries.
Kurdistan lies within the northern extension of the Zagros Folded Belt. The area is highly underexplored and is currently undergoing a significant exploration and development campaign by over 40 mid to large size international oil companies.
ShaMaran Petroleum is a Canadian oil and gas company listed on the TSX Venture Exchange and the NASDAQ OMX First North Exchange (Stockholm) under the symbol “SNM”.
Forward-Looking Statements
This press release contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as legal and political risk, civil unrest, general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and management–s capacity to execute and implement its future plans. Actual results may differ materially from those projected by management. Further, any forward-looking information is made only as of a certain date and the Company undertakes no obligation to update any forward-looking information or statements to reflect events or circumstances after the date on which such statement is made or reflect the occurrence of unanticipated events, except as may be required by applicable securities laws. New factors emerge from time to time, and it is not possible for management of the Company to predict all of these factors and to assess in advance the impact of each such factor on the Company–s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information.
On behalf of the Board,
Pradeep Kabra, President and CEO
ShaMaran Petroleum–s Certified Advisor on NASDAQ OMX First North is Pareto Ohman AB.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
ShaMaran Petroleum Corp.
Keith Hill
Chairman
(604) 806-3583
ShaMaran Petroleum Corp.
Pradeep Kabra
President and CEO
0041 22 560 8605
ShaMaran Petroleum Corp.
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)