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ShaMaran Petroleum has announced its financial and operating results for the three and nine months ended September 30, 2011.
Highlights
A major oil discovery in the Atrush Block was announced by the Company on April 13, 2011. The Atrush 1 well flowed at rates totalling over 6,393 bopd of 26.5 API oil from three tests in the Middle and Upper Jurassic reservoirs and well analysis indicated that the intervals are capable of much higher rates when completed for production. The well was drilled in budget and on time to a total depth of 3,400 meters.
The Appraisal Work Programme & Budget on the Atrush Block has been submitted to the KRG. The Programme consists of 3D seismic and a number of appraisal wells and studies. 3D seismic acquisition is in progress and the construction of the location for the Atrush-2 appraisal well has commenced. Planning for an Early Production facility is also underway.
Pulkhana-9 completed well testing and recovered oil from the Shiranish, Jaddala & Euphrates formations. Due to mechanical issues experienced during testing, a geological sidetrack is underway to allow the openhole testing of the two Cretaceous reservoirs (Shiranish & Balambo) which had good hydrocarbon indications. The workover on the Pulkhana-8 well is on-going.
The Company’s 100% owned subsidiary ShaMaran Petroleum BV entered into a production sharing contract (“PSC”) on July 27, 2011 in respect of the Taza Block (formerly Block K42) in the Kurdistan Region of Iraq. ShaMaran holds a 20% working interest in the PSC, and Oil Search Iraq Limited (“OSIL”) is the operator with a 60% working interest in the PSC. The Kurdistan Regional Government of Iraq (“KRG”) holds a 20% working interest in the PSC with costs carried by ShaMaran and OSIL. Planning is underway for an exploration well to be drilled in 2012.
The Company commenced the acquisition of 2D seismic data on the Arbat Block. The Company will acquire 183 line kilometres of data on the north side of the Block with the objective of defining a closure on a significant lead. The program is expected to be concluded by end of this year.
Cash proceeds of $CAD 51.0 million were raised by the Company through a private placement of 127.5 million common shares at $CAD 0.40 per share which was concluded on November 15, 2011. A 4% finders’ fee is payable in cash on a portion of the private placement.
The Company had net losses of $2,810,000 and $3,323,000 for the three and nine months ended September 30th, 2011 (2010: $750,000 and $3,501,000). The cash balance of the Company was $28.6 million as at September 30th, 2011 (December 31st 2010: $58.7 million).
Outlook
The outlook for the remainder of the year 2011 for the four blocks which the Company holds interests in Kurdistan is as follows:
Atrush Block
3D seismic is currently in progress and operations are expected to continue until the winter weather window closes operations in the high mountains for 2011. The Atrush-2 well location is under construction and operator, GEP, is tendering for a rig that can commence drilling operations in Q2 2012.
Pulkhana Block
The geological sidetrack and openhole testing of the Shiranish & Balambo formations in Pulkhana 9 should be completed in December, and the rig moved drilling Pulkhana-10. The workover operations on Pulkhana-8 should be completed. Planning for Pulkhana-11 will commence.
The Company will progress with the feasibility study and design for the Pulkhana Early Production Facility (“EPF”) planned to be installed in 2012 using information gathered from current operations.
Arbat Block
Construction of the Arbat-1 well location will commence and the design for the well finalized. The ongoing infill 2D seismic should be completed by year end with data processing initiated.
Taza Block (Formerly Block K42)
Well planning for the Taza exploration well will continue following approval of the surface location. Civil engineering works for access road and the well location are under preparation.
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ShaMaran Petroleum has announced its financial and operating results for the three and nine months ended September 30, 2011.
Highlights
A major oil discovery in the Atrush Block was announced by the Company on April 13, 2011. The Atrush 1 well flowed at rates totalling over 6,393 bopd of 26.5 API oil from three tests in the Middle and Upper Jurassic reservoirs and well analysis indicated that the intervals are capable of much higher rates when completed for production. The well was drilled in budget and on time to a total depth of 3,400 meters.
The Appraisal Work Programme & Budget on the Atrush Block has been submitted to the KRG. The Programme consists of 3D seismic and a number of appraisal wells and studies. 3D seismic acquisition is in progress and the construction of the location for the Atrush-2 appraisal well has commenced. Planning for an Early Production facility is also underway.
Pulkhana-9 completed well testing and recovered oil from the Shiranish, Jaddala & Euphrates formations. Due to mechanical issues experienced during testing, a geological sidetrack is underway to allow the openhole testing of the two Cretaceous reservoirs (Shiranish & Balambo) which had good hydrocarbon indications. The workover on the Pulkhana-8 well is on-going.
The Company’s 100% owned subsidiary ShaMaran Petroleum BV entered into a production sharing contract (“PSC”) on July 27, 2011 in respect of the Taza Block (formerly Block K42) in the Kurdistan Region of Iraq. ShaMaran holds a 20% working interest in the PSC, and Oil Search Iraq Limited (“OSIL”) is the operator with a 60% working interest in the PSC. The Kurdistan Regional Government of Iraq (“KRG”) holds a 20% working interest in the PSC with costs carried by ShaMaran and OSIL. Planning is underway for an exploration well to be drilled in 2012.
The Company commenced the acquisition of 2D seismic data on the Arbat Block. The Company will acquire 183 line kilometres of data on the north side of the Block with the objective of defining a closure on a significant lead. The program is expected to be concluded by end of this year.
Cash proceeds of $CAD 51.0 million were raised by the Company through a private placement of 127.5 million common shares at $CAD 0.40 per share which was concluded on November 15, 2011. A 4% finders’ fee is payable in cash on a portion of the private placement.
The Company had net losses of $2,810,000 and $3,323,000 for the three and nine months ended September 30th, 2011 (2010: $750,000 and $3,501,000). The cash balance of the Company was $28.6 million as at September 30th, 2011 (December 31st 2010: $58.7 million).
Outlook
The outlook for the remainder of the year 2011 for the four blocks which the Company holds interests in Kurdistan is as follows:
Atrush Block
3D seismic is currently in progress and operations are expected to continue until the winter weather window closes operations in the high mountains for 2011. The Atrush-2 well location is under construction and operator, GEP, is tendering for a rig that can commence drilling operations in Q2 2012.
Pulkhana Block
The geological sidetrack and openhole testing of the Shiranish & Balambo formations in Pulkhana 9 should be completed in December, and the rig moved drilling Pulkhana-10. The workover operations on Pulkhana-8 should be completed. Planning for Pulkhana-11 will commence.
The Company will progress with the feasibility study and design for the Pulkhana Early Production Facility (“EPF”) planned to be installed in 2012 using information gathered from current operations.
Arbat Block
Construction of the Arbat-1 well location will commence and the design for the well finalized. The ongoing infill 2D seismic should be completed by year end with data processing initiated.
Taza Block (Formerly Block K42)
Well planning for the Taza exploration well will continue following approval of the surface location. Civil engineering works for access road and the well location are under preparation.
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