VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 11/21/12 — ShaMaran Petroleum Corp. (TSX VENTURE: SNM)(OMX: SNM) (“ShaMaran” or the “Company”) is pleased to announce its financial and operating results for the three and nine months ended September 30, 2012.
Financial and Operating Results for the three and nine months ended September 30, 2012
During the nine months ended September 30, 2012 the Company continued its exploration and appraisal campaign in respect of petroleum properties located in the Kurdistan Region of Iraq which constitute the continuing operations of the Company. These petroleum properties have generated no revenues. The net loss in the first three quarters of 2012 was primarily 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 $5.8 million during first nine months of 2012. The decrease in the cash position was due to $59.3 in cash outflows, which was mainly comprised of cash payments to the KRG of $25 million in relinquishment fees, payments against accounts payable and accrued expenses by $20.7 million and $14.1 million in spending related to the Atrush and Taza Block petroleum properties, offset by cash inflows of $53.5 million related to the sale of the Taza Block PSC interest and other assets.
Outlook
The outlook to the end of the year 2013 is as follows:
Atrush Block
The Contractor is currently in the process of preparing a Field Development Plan which will be submitted to the Atrush Block Management Committee within 180 days following the Declaration of Commercial Discovery which was submitted on November 7, 2012.
The Atrush-3 appraisal well is expected to be spudded before the end of the current year. Civil engineering work is nearing completion which will provide road access to the Atrush-3 well location which is approximately 5km east of the Atrush-2 well. The drilling rig will be moved from the Atrush-1 well site to the Atrush-3 location.
The Atrush-4 and Atrush-5 appraisal wells are planned to be spudded during the year 2013. Planning for these wells is currently underway.
The 3D seismic acquisition program which covered the entire Atrush block and adjoining Swara Tika discovery was completed on August 11, 2012. Final processing of the complete 3D seismic survey is expected in the first quarter of 2013.
The tendering process has been completed for a contract to install and operate extended test facility (“ETF”) with a maximum production capacity of 5,000 bopd. The ETF is expected to be commissioned in the first quarter of 2013 with production coming from the Atrush-1 well. The Atrush-2 well will be used to monitor reservoirs. An additional ETF is planned to be installed on the Atrush-3 well in the second half of the year 2013. Work on an enhanced ETF with production capacities from 10,000 bopd expandable to 30,000 bopd is planned to commence in the second 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)