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
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). Download Slide Deck: ▸ Here In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discusse...
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...