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ShaMaran Announces Results
Posted on 14 November 2013
ShaMaran Petroleum has announced its financial and operating results for the three and nine months ended September 30, 2013. (Unless otherwise stated all currency amounts indicated as “$” in this news release are expressed in thousands of United States dollars):
Highlights
◦The Company announced on October 30, 2013 that its USD 150 million senior secured bond was fully subscribed. Net proceeds from the bond will be used to fund the Company’s future capital expenditures related to the development of the Atrush Block. The bond is expected to close on November 13, 2013.
◦On October 7, 2013 the Company announced that the Kurdistan Regional Government (“KRG”) had approved Phase 1 of the Field Development Plan (“FDP”) for the Atrush Block with an October 1, 2013 effective date for the commencement of the Development Period. The TAQA-operated Atrush Block, located 85 km northwest of Erbil, is planned to have an initial production capacity of 30,000 barrels of gross oil per day (bpd) with first oil expected by early 2015.
◦The Atrush-4 Phase 1 development well spudded on October 20, 2013 with planned total depth (“TD”) of 2,460 meters and an estimated drilling time of 70 days.
◦The Atrush-3 appraisal well, located 6.5 kilometers to the east of the Atrush-2 appraisal well, was spudded on March 25, 2013 and reached TD of 1,806 meters on June 23, 2013 within the potential Phase 2 development area. The well confirmed the extension of the oil bearing BSAM reservoir (Jurassic age Barsarin-Sargelu-Alan-Mus formations), while also confirming lowest known oil at depths consistent with the previous wells. Drill stem tests conducted with hydrocarbons recovered to surface but due to equipment limitations accurate flow rates were unable to be determined. AT-3 has been suspended as a potential future producer.
◦The Company announced on February 4, 2013 an increase of 35% in Best Estimate 2C Contingent Resources (gross) for the Atrush Block, from 465 MMBOE at December 31, 2011 to 627 MMBOE at the end of 2012. The estimates were provided by the Company’s independent qualified resources evaluator, McDaniel & Associates Consultants Ltd., in a Detailed Property Report prepared as at December 31, 2012.
◦On March 12, 2013 the Contractor entities to the Atrush Block PSC were notified by the KRG that it had exercised its option to acquire a 25% Government Interest in accordance with the provisions of the Atrush Block PSC.
Financial and Operating Results for the three and nine months ended September 30th 2013
During the three and nine months ended September 30, 2013 the Company continued its appraisal and development campaign in respect of the Atrush petroleum property located in the Kurdistan Region of Iraq which constitutes the continuing operations of the Company.
Atrush currently generates no revenues. The net loss in the first three quarters of the current year principally relates to the general and administrative expenses and share based payments expense incurred in respect of the continuing operations of the Company.
Outlook
The outlook to the end of the year 2013 is as follows:
Atrush Block
Following the KRG approval of Phase 1 plans are being implemented to achieve First Oil of 30,000 bopd by early 2015. The Contractor group and the MNR are working closely to fast-track First Oil.
Drilling of the AT-4 appraisal/development well is expected to continue to year end. Depending on well results, numerous well tests may be conducted.
The FEED for the Phase 1 Production Facilities was completed in October. Bids for the facilities are expected in November, with contracts likely to be awarded by the end of year 2013.
The Company anticipates that the proceeds of a USD 150 million bond issue, expected to close on November 13, 2013, will enable it to finance development activities to achieve first production. Future development phases of the Atrush field are expected to be financed using cash flows from the sale of oil production from the Atrush Block.
New Ventures
As part of its normal business the Company continues to evaluate new opportunities in the MENA region.
(Source: Shamaran)
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Posted on 14 November 2013
ShaMaran Petroleum has announced its financial and operating results for the three and nine months ended September 30, 2013. (Unless otherwise stated all currency amounts indicated as “$” in this news release are expressed in thousands of United States dollars):
Highlights
◦The Company announced on October 30, 2013 that its USD 150 million senior secured bond was fully subscribed. Net proceeds from the bond will be used to fund the Company’s future capital expenditures related to the development of the Atrush Block. The bond is expected to close on November 13, 2013.
◦On October 7, 2013 the Company announced that the Kurdistan Regional Government (“KRG”) had approved Phase 1 of the Field Development Plan (“FDP”) for the Atrush Block with an October 1, 2013 effective date for the commencement of the Development Period. The TAQA-operated Atrush Block, located 85 km northwest of Erbil, is planned to have an initial production capacity of 30,000 barrels of gross oil per day (bpd) with first oil expected by early 2015.
◦The Atrush-4 Phase 1 development well spudded on October 20, 2013 with planned total depth (“TD”) of 2,460 meters and an estimated drilling time of 70 days.
◦The Atrush-3 appraisal well, located 6.5 kilometers to the east of the Atrush-2 appraisal well, was spudded on March 25, 2013 and reached TD of 1,806 meters on June 23, 2013 within the potential Phase 2 development area. The well confirmed the extension of the oil bearing BSAM reservoir (Jurassic age Barsarin-Sargelu-Alan-Mus formations), while also confirming lowest known oil at depths consistent with the previous wells. Drill stem tests conducted with hydrocarbons recovered to surface but due to equipment limitations accurate flow rates were unable to be determined. AT-3 has been suspended as a potential future producer.
◦The Company announced on February 4, 2013 an increase of 35% in Best Estimate 2C Contingent Resources (gross) for the Atrush Block, from 465 MMBOE at December 31, 2011 to 627 MMBOE at the end of 2012. The estimates were provided by the Company’s independent qualified resources evaluator, McDaniel & Associates Consultants Ltd., in a Detailed Property Report prepared as at December 31, 2012.
◦On March 12, 2013 the Contractor entities to the Atrush Block PSC were notified by the KRG that it had exercised its option to acquire a 25% Government Interest in accordance with the provisions of the Atrush Block PSC.
Financial and Operating Results for the three and nine months ended September 30th 2013
During the three and nine months ended September 30, 2013 the Company continued its appraisal and development campaign in respect of the Atrush petroleum property located in the Kurdistan Region of Iraq which constitutes the continuing operations of the Company.
Atrush currently generates no revenues. The net loss in the first three quarters of the current year principally relates to the general and administrative expenses and share based payments expense incurred in respect of the continuing operations of the Company.
Outlook
The outlook to the end of the year 2013 is as follows:
Atrush Block
Following the KRG approval of Phase 1 plans are being implemented to achieve First Oil of 30,000 bopd by early 2015. The Contractor group and the MNR are working closely to fast-track First Oil.
Drilling of the AT-4 appraisal/development well is expected to continue to year end. Depending on well results, numerous well tests may be conducted.
The FEED for the Phase 1 Production Facilities was completed in October. Bids for the facilities are expected in November, with contracts likely to be awarded by the end of year 2013.
The Company anticipates that the proceeds of a USD 150 million bond issue, expected to close on November 13, 2013, will enable it to finance development activities to achieve first production. Future development phases of the Atrush field are expected to be financed using cash flows from the sale of oil production from the Atrush Block.
New Ventures
As part of its normal business the Company continues to evaluate new opportunities in the MENA region.
(Source: Shamaran)
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