Bli medlem
Bli medlem

Du är här

2014-03-13

SHAMARAN ANNOUNCES YEAR-END 2013 RESERVES AND RESOURCES

UNCES YEAR-END 2013 RESERVES AND RESOURCES

March 13, 2014 (TSXV-SNM, NASDAQ OMX First North-SNM) – ShaMaran Petroleum
Corp. ("ShaMaran" or the "Company") is pleased to report initial recognition of
reserves as well as updates to estimated contingent resources and prospective
resources for the Atrush block as of December 31, 2013. The reserves and
resources estimates were provided by McDaniel & Associates Consultants Ltd.
(“McDaniel”), the Company’s independent qualified resources evaluator, and were
prepared in accordance with standards set out in the Canadian National
Instrument NI 51-101 and Canadian Oil and Gas Evaluation Handbook (COGEH).

McDaniel estimates for reserves and resources have taken into account the
results of the Atrush-3 well, the latest remapping based on 3D seismic and the
commitment to the first phase of Atrush development as defined by the KRG
approved field development plan.

RESERVES SUMMARY – ATRUSH PHASE 1 DEVELOPMENT

AS OF December 31, 2013

MBBL, (1) (2) (3)

Reserves Category: Property Company Company
Gross Gross (2) Net (3)
-----------------------------
-----------------------------
Light/Medium Oil (Mbbl)
Total Proved Reserves (1P) 30,572 6,145 4,116
Probable Reserves 27,609 5,549 2,283
Proved + Probable Reserves (2P) 58,182 11,694 6,399
Possible Reserves 52,543 10,561 2,904
Proved + Probable + Possible Reserves (3P) 110,724 22,256 9,304

1. Reserves are based on the KRG-approved Phase 1 Atrush development
comprising a 30,000 bpd facility and 3 producers (AT-2, AT-4 and AT-5).
2. Company gross reserves are based on Company working interest share of the
property gross reserves.
3. Company net reserves are based on Company share of total cost and profit
revenues and the income tax paid on behalf of company.

Possible reserves are those additional reserves that are less certain to be
recovered than probable reserves. There is a 10% probability that the
quantities actually recovered will equal or exceed the sum of proved plus
probable plus possible reserves. The reserves were estimated using forecast
prices and costs. The sales oil price was based on the McDaniel January 1, 2014
price forecast for Brent crude oil with a discount of 40 percent in 2014 and
2015, 35 percent in 2016, 30 percent in 2017 and 25 percent in 2018 onwards.
The initial discount to Brent was based on published sales prices in the
Kurdistan Region of Iraq from 2013 and equates to an oil price of US$ 63.00 per
barrel in 2014. Costs were escalated at 2 percent per annum. Oil pricing is
uncertain and any eventual announcement of sales and pricing of exported
Kurdish crude during 2014 together with the Kurdish export pipeline becoming
fully operational will impact on future price scenarios.

The updated estimates of contingent resources for the Atrush block are as
follows:

CONTINGENT RESOURCES Summary – ATRUSH JURASSIC OIL DISCOVERY*

AS of December 31, 2013

(1) (2) (3) (4)

* Barsarin, Sargelu, Alan, Mus (“BSAM”), Adaiyah & Butmah formations, in
addition to the volumes assigned to Reserves.

Low Estimate Best Estimate High Estimate (3C)
(1C) (2C)
------------------------------------------------
Property Gross
Crude Oil (Mbbl) 388,804 497,833 618,027
Natural Gas (MMcf) 90,289 122,585 165,857
Total (Mboe) (6) 403,852 518,263 645,669
Company Gross (5)
Crude Oil (Mbbl) 78,150 100,064 124,223
Natural Gas (MMcf) 18,148 24,640 33,337
Total (Mboe) (6) 81,174 104,171 129,780

1. There is no certainty that it will be commercially viable or technically
feasible to produce any portion of the resources.
2. These are unrisked contingent resources that do not take into account the
chance of commerciality.
3. Contingent resources were estimated by subtracting the reserves from the
total recoverable resources.
4. Total based on the probabilistic aggregation of zones within the Atrush
field and as such does not equal the arithmetic sum of the individual
zones.
5. Company gross resources are based on Company working interest share of the
property gross resources.
6. 6 Mcf is equivalent to 1 BOE.

The resources included in the table above are classified as contingent as the
associated project(s) are dependent upon the results of the Atrush Phase 1
development; this first phase of development should, together with further
appraisal drilling, narrow the uncertainty in the contingent resources
estimates and help determine if their development is economic.

The updated estimates of prospective resources for the Atrush block are as
follows:

Prospective RESOURCES Summary – ATRUSH BLOCK*

AS of December 31, 2013

(1) (2) (3)

* Comprising remaining potential in the Atrush hanging wall (Triassic), Atrush
Footwall (Cretaceous, Jurassic & Triassic) and extension of the Swara Tika
structure into the Atrush block (Jurassic & Triassic).

Unrisked Unrisked Unrisked Unrisked Risked (2)
Low Best Mean High Mean
Estimate Estimate Estimate Estimate Estimate
-----------------------------------------------------------------
Property Gross
Crude Oil 121,425 173,194 180,165 247,211 60,479
(Mbbl)
Condensate 8,741 28,327 36,173 72,890 6,766
(Mbbl)
Natural Gas 141,366 258,352 289,988 481,107 61,445
(MMcf)
Total (Mboe) 153,727 244,580 264,670 400,285 77,485
(5)
Company Gross
(4)
Crude Oil 24,406 34,812 36,213 49,689 12,156
(Mbbl)
Condensate 1,757 5,694 7,271 14,651 1,360
(Mbbl)
Natural Gas 28,415 51,929 58,288 96,702 12,350
(MMcf)
Total (Mboe) 30,899 49,161 53,199 80,457 15,575
(5)

1. There is no certainty that any portion of the prospective resources will be
discovered. If discovered, there is no certainty that it will be
commercially viable or technically feasible to produce any portion of the
resources.
2. These are partially risked prospective resources that have been risked for
chance of discovery, but have not been risked for chance of development.
3. Total based on the probabilistic aggregation of undiscovered pools within
the field/prospect.
4. Company gross resources are based on Company working interest share of the
property gross resources.
5. 6 Mcf is equivalent to 1 BOE.

Additional information related to above noted reserve and resource estimates,
including net present value estimates, is included in Form 51-101F1, which may
be viewed under the Company’s profile on SEDAR at www.sedar.com, or in the
Company’s Annual Information Form, which is available both on SEDAR at
www.sedar.com and on the Company’s web-site at www.shamaranpetroleum.com.

Pradeep Kabra, President and CEO of ShaMaran commented, “We are pleased to
report the initial recognition of reserves relating to ShaMaran’s interest the
Atrush field, and the progress being made towards achieving ‘First Oil’ at
Atrush in early 2015. At this early stage of appraisal, the majority of
contingent and prospective resources are still to be assigned as reserves and
we look forward to continuing the appraisal and development work in 2014 to
achieve the full potential of the field.”

The Atrush Block is operated by the Abu Dhabi National Energy Company PJSC
("TAQA") and is held 39.9% by TAQA, ShaMaran Petroleum Corp, through its wholly
owned subsidiary General Exploration Partners, Inc. (“GEP”) 20.1%, 15% Marathon
Oil KDV B.V., (a wholly owned subsidiary of Marathon Oil Corporation (NYSE:
MRO)), and 25% by the KRG. Atrush reserves and resource estimates presented
represent solely the view of ShaMaran and its experts.

About ShaMaran

ShaMaran Petroleum Corp. is a Kurdistan focused oil development and exploration
vehicle with a 20.1% working interest in the Atrush oil discovery currently
undergoing appraisal and development.

ShaMaran Petroleum is a Canadian oil and gas company listed on the TSX Venture
Exchange under the symbol "SNM" as well as NASDAQ OMX First North under the
symbol "SNM".

On behalf of the Board,

Pradeep Kabra,

President and CEO

Forward looking information: 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 informat...

Författare SSE

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.