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ShaMaran Petroleum Corp Company Announcement SHAMARAN PETROLEUM: OPERATIONS
UPDATE November 8, 2016 - ShaMaran Petroleum Corp. ("ShaMaran" or the
"Company") (TSX VENTURE: SNM) (NASDAQ OMX: SNM) is pleased to announce that
TAQA Atrush B.V. (“TAQA”), as operator of the Atrush Block Production
Sharing Contract (“PSC”), has entered into an Engineering, Procurement and
Construction (“EPC”) contract with KAR Company (“KAR”) for the construction
of the feeder pipeline from the Atrush block boundary to the tie-in point
with the main Kurdistan export pipeline (the “Feeder Pipeline”). Work on
the Feeder Pipeline will commence immediately. Simultaneously the
Assignment, Novation and Fourth Amendment Agreement to the PSC (the “4th
PSC Amendment”) and Atrush Facilitation Agreement were concluded between
TAQA, General Exploration Partners, Inc. (“GEP”, a wholly owned subsidiary
of ShaMaran), Marathon Oil KDV BV (together, the “Non-Government
Contractors”) and the Kurdistan Regional Government (“KRG”). The 4th PSC
Amendment and Atrush Facilitation Agreement include the following principal
terms: --

The KRG acquires a 25% interest in the PSC effective November 7, 2012, the
date of declaration of commerciality (“DOC date”). As a consequence the
respective participating interests in the Atrush PSC are TAQA at 39.9%, the
KRG at 25%, GEP at 20.1% and Marathon Oil KDV B.V. at 15%;


The Non-Government Contractors will fund the cost of constructing the
Feeder Pipeline which will be novated to the KRG following the commencement
of oil exports from Atrush;


All Atrush petroleum costs from the DOC date through the commencement of
oil exports from Atrush will be paid by the Non-Government Contractors and
the majority of the KRG’s share of these costs will be repaid through an
accelerated PSC cost recovery arrangement from the sale of future oil
production from Atrush; and


Feeder Pipeline costs and the balance of the Atrush petroleum costs
incurred by the Non-Government Contractors on behalf of the KRG that are
not covered by the accelerated PSC cost recovery arrangement will be repaid
by the KRG within 2 years from the commencement of oil exports from Atrush.

The length and complexity of the commercial discussions associated with the
above discussed agreements have brought the commencement of the Atrush
Feeder Pipeline closer to the winter season which means there is an
increased risk to the schedule and, while completion in the first quarter
of 2017 is still the target and a possibility, it is probable that first
production from Atrush will be further delayed to the second quarter of
2017. As a result the Company estimates that it will require approximately
$20 million of additional funding which the Company expects will be made
available by increasing GEP’s Super Senior Bond through facilities provided
for in GEP’s April 2016 financing arrangement. Chris Bruijnzeels, President
and CEO of ShaMaran, commented: “We are very pleased construction on the
Atrush feeder pipeline will now start under the direct operational control
of TAQA. The pipeline funding arrangement with the KRG allows us to move
forward in executing the construction project. We are also pleased that the
KRG has finalised their right to acquire a 25% interest in Atrush. With
this, two major uncertainties surrounding the Atrush project have been
positively resolved. The partnership can now fully concentrate on
delivering first oil. The accelerated cost recovery scheme combined with
the pipeline funding repayment should allow for a robust cash flow once
production has started.” This information in this release is subject to the
disclosure requirements of ShaMaran Petroleum Corp. under the EU Market
Abuse Regulation and/or the Swedish Securities Markets Act. This
information was publicly communicated on November 8, 2016 at 12:30 Central
European Time. ABOUT SHAMARAN ShaMaran Petroleum Corp. is a Kurdistan
focused oil development and exploration company with a 20.1% direct
interest in the Atrush oil discovery. The Atrush Block is currently
undergoing an appraisal and development campaign. ShaMaran 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". 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. Pareto Securities AB is the
Company’s Certified Advisor on NASDAQ OMX First North. FORWARD LOOKING
STATEMENTS This news release contains statements and information 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. Any
statements that are contained in this news release that are not statements
of historical fact may be deemed to be forward-looking information.
Forward-looking information typically contains statements with words such
as "may", "will", "should", "expect", "intend", "plan", "anticipate",
"believe", "estimate", "projects", "potential", "scheduled", "forecast",
"outlook", "budget" or the negative of those terms or similar words
suggesting future outcomes. The Company cautions readers regarding the
reliance placed by them on forward?looking information as by its nature, it
is based on current expectations regarding future events that involve a
number of assumptions, inherent risks and uncertainties, which could cause
actual results to differ materially from those anticipated by the Company.
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. FOR
ShaMaran Petroleum Corp. +41 22 560 8605 Sophia Shane Corporate Development
ShaMaran Petroleum Corp. +1 604 689 7842 Robert Eriksson
Investor Relations, Sweden ShaMaran Petroleum Corp. +46 701 112615

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