Click here to close now.

Welcome!

News Feed Item

ShaMaran 2013 Year End Financial and Operating Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/13/14 -- ShaMaran Petroleum Corp. ("ShaMaran" or the "Company") (TSX VENTURE: SNM)(OMX: SNM) is pleased to announce its financial and operating results for the year ended December 31, 2013. Unless otherwise stated all currency amounts indicated as "$" in this news release are expressed in thousands of United States dollars.

HIGHLIGHTS


--  The Company reports initial recognition of reserves (property gross of
    58 MMbo 2P) as well as updates to estimated contingent resources
    (property gross of 518 MMboe 2C) and prospective resources (property
    gross unrisked best estimate of 245 MMboe) as of December 31, 2013 for
    the Atrush block. The reserves and resources estimates were provided by
    McDaniel & Associates Consultants Ltd, the Company's independent
    qualified resources evaluator.
--  On November 13, 2013 General Exploration Partners, Inc. a fully owned
    subsidiary of the Company, issued $150 million of senior secured bonds.
    Net proceeds from the bond will be used to fund the Company's future
    capital expenditures related to the development of the Atrush Block.
--  On October 7, 2013 the Company announced that the Kurdistan Regional
    Government ("KRG") had approved Phase 1 of the Field Development Plan
    for the Atrush Block with an October 1, 2013 effective date for the
    commencement of the Development Period. The Atrush Block, located 85
    kilometres northwest of Erbil and operated by TAQA Atrush B.V. is
    planned to have an initial production capacity of 30,000 barrels of
    gross oil per day with first oil expected by early 2015.
--  The Atrush-4 Phase 1 development well spudded on October 20, 2013 and
    reached a total depth ("TD") of 2,916 meters on January 23, 2014.
    Atrush-4 is currently being tested.
--  The Atrush-3 appraisal well, located 6.5 kilometres 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 Jurassic age
    Barsarin-Sargelu-Alan-Mus reservoir and extended the Deepest Proven Oil
    column by approx. 180 meters. Drill stem tests were conducted with
    hydrocarbons recovered to surface but due to equipment limitations
    accurate flow rates were not determined. Atrush-3 is currently
    suspended.
--  On March 12, 2013 the Contractor entities to the Atrush Block Production
    Sharing Contract ("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 YEAR ENDED DECEMBER 31, 2013

During the year ended December 31, 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 Company has reported a net loss of $3.3 million in 2013, which was primarily due to routine general and administrative and share based payment expenses in respect of continuing operations, as well as the portion of uncapitalised interest expense on the Company's senior secured bonds, included as a finance cost. These charges have been offset by a gain on the release of an excess site restoration provision associated with the Company's discontinued operations in the United States.



Consolidated Statement of Comprehensive Income
(Audited, expressed in thousands of United States Dollars)

                                            For the year ended December 31,
                                                       2013            2012
---------------------------------------------------------------------------
Expenses from continuing operations
General and administrative expense                   (2,393)         (2,852)
Share based payments expense                           (882)             (8)
Impairment (loss) / recovery                            (84)          1,814
Depreciation and amortisation expense                   (65)           (183)
Share of income of associate                              -         129,000
Gain on fair valuation of net assets of
 subsidiary                                               -         102,735
Gain on sale of asset                                     -           1,100
Relinquishment costs                                      -         (25,732)
---------------------------------------------------------------------------
(Loss) / income before finance items and
 income tax expense                                  (3,424)        205,874
---------------------------------------------------------------------------
Finance cost                                           (740)           (719)
Finance income                                           28             359
---------------------------------------------------------------------------
Net finance cost                                       (712)           (360)
---------------------------------------------------------------------------
(Loss) / income before income tax expense            (4,136)        205,514
Income tax expense                                      (87)            (89)
---------------------------------------------------------------------------
Net (loss) / income from continuing
 operations                                          (4,223)        205,425
Discontinued operations
Net income / (loss) from discontinued
 operations                                             935             (61)
---------------------------------------------------------------------------
Net (loss) / income for the year                     (3,288)        205,364
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Other comprehensive income:
Currency translation differences                         19              26
---------------------------------------------------------------------------
Total other comprehensive income                         19              26
---------------------------------------------------------------------------

Total comprehensive (loss) / income for the
 year                                                (3,269)        205,390
---------------------------------------------------------------------------
---------------------------------------------------------------------------


Consolidated Balance Sheet
(Audited, expressed in thousands of United States Dollars)

                                                         As at December 31,
                                                        2013           2012
---------------------------------------------------------------------------
Assets
Non-current assets
Intangible assets                                    344,990        303,549
Property, plant and equipment                            179            257
---------------------------------------------------------------------------
                                                     345,169        303,806
---------------------------------------------------------------------------
Current assets
Cash and cash equivalents                            142,588         41,216
Other current assets                                     194            331
Inventories                                                -            198
---------------------------------------------------------------------------
                                                     142,782         41,745
---------------------------------------------------------------------------
Assets associated with discontinued operations             3              3
---------------------------------------------------------------------------
Total assets                                         487,954        345,554
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Liabilities and equity
Current liabilities
Accounts payable and accrued expenses                  7,458          7,027
Accrued interest expense on bonds                      2,252              -
Current tax liabilities                                   92             90
Deferred liability                                         -          5,000
---------------------------------------------------------------------------
                                                       9,802         12,117
---------------------------------------------------------------------------
Non-current liabilities
Borrowings                                           147,050              -
Provisions                                             1,185            120
---------------------------------------------------------------------------
                                                     148,235            120
---------------------------------------------------------------------------
Liabilities associated with discontinued
 operations                                              928          1,941
---------------------------------------------------------------------------
Total liabilities                                    158,965         14,178
---------------------------------------------------------------------------
Equity
Share capital                                        534,068        534,068
Share based payments reserve                           4,718          3,836
Cumulative translation adjustment                         27              8
Accumulated deficit                                 (209,824)      (206,536)
---------------------------------------------------------------------------
Total equity                                         328,989        331,376
---------------------------------------------------------------------------
Total liabilities and equity                         487,954        345,554
---------------------------------------------------------------------------
---------------------------------------------------------------------------

The total assets reported at the end of the year 2013 have increased by $142 million relative to the total assets reported at the end of 2012 which was mainly due to the increase in the Company's cash and debt positions resulting from the issue during the year of $150 million of senior secured bonds.

The increase by $101.4 million in the cash position of the Company during year 2013 was the combined result of receiving net cash proceeds of $147 million on the issue of the bonds, while spending $39.8 million on Atrush Block appraisal and development activities, $5.0 million on the settlement of a deferred liability and $2.5 million on G&A and other cash expenses, and with $1.7 million of positive cash movements due to changes in working capital items.


Consolidated Cash Flow Statement
(Audited, expressed in thousands of United States Dollars)

                                            For the year ended December 31,
                                                     2013              2012
---------------------------------------------------------------------------
Operating activities
Net (loss) / income from continuing
 operations                                        (4,223)          205,425
Adjustments for:
 Share based payments expense                         882                 8
 Interest expense on senior secured
  bonds - net                                         689                 -
 Impairment loss / (recovery)                          84            (1,814)
 Depreciation and amortisation expense                 65               183
 Foreign exchange loss / (gain)                        49              (333)
 Income tax                                             2               (32)
 Interest income                                      (28)              (26)
 Interest expense on equity based
  finance fee                                           -               719
 Gain on sale of asset                                  -            (1,100)
 Gain on fair valuation of net assets of
  subsidiary                                            -          (102,735)
 Share of income of associate                           -          (129,000)
 Changes in provisions                              1,065               120
 Changes in accounts payable and accrued
  expenses                                            431           (16,550)
 Changes in inventories                               114             2,552
 Changes in other current assets                      137               421
Cash used in discontinued operations                  (78)             (715)
---------------------------------------------------------------------------
Net cash outflows to operating
 activities                                          (811)          (42,877)
---------------------------------------------------------------------------

Investing activities
Interest received on cash deposits                     28                26
Deferred liability                                 (5,000)            5,000
Purchases of intangible assets                    (39,788)           (8,395)
Net proceeds on sale of intangible
 assets                                                 -            52,671
Proceeds on reimbursement of intangible
 costs                                                  -             1,250
Net proceeds on sale of property, plant
 and equipment                                          -               802
Purchases of property, plant and
 equipment                                              -              (595)
Investment in associate                                 -           (16,110)
---------------------------------------------------------------------------
Net cash (outflows to) / inflows from
 investing activities                             (44,760)           34,649
---------------------------------------------------------------------------

Financing activities
Proceeds on bond issue                            150,000                 -
Bond related transaction costs                     (3,028)                -
---------------------------------------------------------------------------
Net cash inflows from financing
 activities                                       146,972                 -
---------------------------------------------------------------------------

Effect of exchange rate changes on cash
 and cash equivalents                                 (29)              359
---------------------------------------------------------------------------

Change in cash and cash equivalents               101,372            (7,869)
Cash and cash equivalents, beginning of
 the year                                          41,216            49,085
---------------------------------------------------------------------------
Cash and cash equivalents, end of the
 year                                             142,588            41,216
---------------------------------------------------------------------------
---------------------------------------------------------------------------

OUTLOOK

The outlook for the year 2014 is as follows:

Atrush Block

Following the KRG approval of Phase 1 plans are being implemented to achieve First Oil of 30,000 bopd gross by early 2015.

Testing of the AT-4 appraisal/development well is expected to be completed during the first quarter of 2014. Drilling plans for the year 2014 include drilling of AT-5, the third Phase 1 development well, followed by the Atrush-6 well. Further testing of the AT-3 well will also be conducted during 2014 following a planned re-entry.

The FEED for the Phase 1 Production Facilities was completed in October 2013. Orders for the production modules for the 30,000 bopd facilities were finalised in December 2013. Civil engineering at the selected facilities site commenced in early 2014.

Budget

The Board of Directors approved a budget for the year 2014 which includes net capital spending on the Atrush Block appraisal and development program and debt service and other costs totalling $101.0 million.

The Company believes that based on the forecasts and projections they have prepared its current financial resources are sufficient for the Company to satisfy its contractual obligations and commitments under the agreed work program over the next 12 months. Nevertheless the potential remains that the Company's financial resources will be insufficient to fund its obligations over the next 12 months. The Company has a number of financing possibilities which it believes it would be able to pursue if and when required.

New Ventures

As part of its normal business the Company continues to evaluate new opportunities in the MENA region.

ABOUT SHAMARAN

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

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". 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.

ShaMaran Petroleum's Certified Advisor on NASDAQ OMX First North is Pareto Securities AB.

The Company's annual consolidated financial statements, notes to the financial statements, management's discussion and analysis and Annual Information Form have been filed on SEDAR (www.sedar.com) and are also available on the Company's website (www.shamaranpetroleum.com). The Annual Information Form includes the Company's reserves and resource data as at December 31, 2013 as provided by McDaniel & Associates Consultants Ltd and other oil and natural gas information prepared in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.

ShaMaran will hold an annual general meeting of shareholders on June 18, 2014 in Vancouver, British Columbia.

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

Contacts:
ShaMaran Petroleum Corp.
Keith Hill
Chairman
(604) 806-3583
[email protected]

ShaMaran Petroleum Corp.
Pradeep Kabra
President and CEO
0041 22 560 8605
[email protected]

ShaMaran Petroleum Corp.
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)
[email protected]
www.shamaranpetroleum.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Containers are revolutionizing the way we deploy and maintain our infrastructures, but monitoring and troubleshooting in a containerized environment can still be painful and impractical. Understanding even basic resource usage is difficult – let alone tracking network connections or malicious activity. In his session at DevOps Summit, Gianluca Borello, Sr. Software Engineer at Sysdig, will cover the current state of the art for container monitoring and visibility, including pros / cons and liv...
Containers are changing the security landscape for software development and deployment. As with any security solutions, security approaches that work for developers, operations personnel and security professionals is a requirement. In his session at DevOps Summit, Kevin Gilpin, CTO and Co-Founder of Conjur, will discuss various security considerations for container-based infrastructure and related DevOps workflows.
"We have a tagline - "Power in the API Economy." What that means is everything that is built in applications and connected applications is done through APIs," explained Roberto Medrano, Executive Vice President at Akana, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations migh...
WebRTC converts the entire network into a ubiquitous communications cloud thereby connecting anytime, anywhere through any point. In his session at WebRTC Summit,, Mark Castleman, EIR at Bell Labs and Head of Future X Labs, will discuss how the transformational nature of communications is achieved through the democratizing force of WebRTC. WebRTC is doing for voice what HTML did for web content.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of...
"A lot of the enterprises that have been using our systems for many years are reaching out to the cloud - the public cloud, the private cloud and hybrid," stated Reuven Harrison, CTO and Co-Founder of Tufin, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, will explore the IoT cloud-based platform technologies drivi...
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud envir...
Overgrown applications have given way to modular applications, driven by the need to break larger problems into smaller problems. Similarly large monolithic development processes have been forced to be broken into smaller agile development cycles. Looking at trends in software development, microservices architectures meet the same demands. Additional benefits of microservices architectures are compartmentalization and a limited impact of service failure versus a complete software malfunction. Th...
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
The last decade was about virtual machines, but the next one is about containers. Containers enable a service to run on any host at any time. Traditional tools are starting to show cracks because they were not designed for this level of application portability. Now is the time to look at new ways to deploy and manage applications at scale. In his session at @DevOpsSummit, Brian “Redbeard” Harrington, a principal architect at CoreOS, will examine how CoreOS helps teams run in production. Attende...
"We provide a web application framework for building really sophisticated web applications that run on a browser without any installation need so we get used for biotech, defense, and banking applications," noted Charles Kendrick, CTO and Chief Architect at Isomorphic Software, in this SYS-CON.tv interview at @DevOpsSummit (http://DevOpsSummit.SYS-CON.com), held June 9-11, 2015, at the Javits Center in New York