Welcome!

News Feed Item

ShaMaran Q1 2014 Financial and Operating Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/16/14 -- ShaMaran Petroleum Corp. (TSX VENTURE: SNM)(OMX: SNM) ("ShaMaran" or the "Company") is pleased to announce its financial and operating results for the three months ended March 31, 2014. Unless otherwise stated all currency amounts indicated as "$" in this news release are expressed in thousands of United States dollars.

HIGHLIGHTS

--  On April 16, 2014 the Company announced the test results of the Atrush-4
    appraisal and development well which was drilled to a total depth of
    2,916 metres. Three separate cased hole drill stem tests were conducted
    in the Jurassic reservoir with the highest reported rates totalling
    9,059 bopd of 27-28 API from two of the tests. None of the tests
    produced formation water. Down hole samples for PVT analysis and surface
    samples for oil assay studies were taken. Well testing operations were
    completed on April 7, 2014. Atrush-4 is a deviated well from the Atrush-
    1 well pad with the bottom hole location approximately 2.2 km SE of the
    surface location. Atrush-4 has been suspended as a Phase 1 producer.

--  The Company reported on March 13, 2014 the 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.

--  At March 31, 2014 the Company had a cash balance of $122 million and
    working capital of $114 million.

FINANCIAL AND OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2014

During the three months ended March 31, 2014 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 reported a net loss of $2.1 million in the first quarter of 2014, which was primarily driven by the bond interest expense, included within finance cost, as well as routine general and administrative expenses and share based payments expense.


Condensed Interim Consolidated Statement of Comprehensive Income
(Unaudited, expressed in thousands of United States dollars)

                                                 For the three months ended
                                                                  March 31,
                                                         2014          2013
---------------------------------------------------------------------------
Expenses from continuing operations
General and administrative expense                       (556)         (450)
Share based payments expense                             (147)           (1)
Depreciation and amortisation expense                     (11)          (19)
---------------------------------------------------------------------------
Loss before finance items and income tax expense         (714)         (470)
---------------------------------------------------------------------------
Finance cost                                           (1,364)            -
Finance income                                              2            50
---------------------------------------------------------------------------
Net finance (cost) / income                            (1,362)           50
---------------------------------------------------------------------------
Loss before income tax expense                         (2,076)         (420)
Income tax expense                                        (32)          (40)
---------------------------------------------------------------------------
Net loss from continuing operations                    (2,108)         (460)
Discontinued operations
Net loss from discontinued operations                     (15)          (20)
---------------------------------------------------------------------------
Net loss for the period                                (2,123)         (480)
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Other comprehensive income / (loss) :
Currency translation differences                            6           (88)
---------------------------------------------------------------------------
Total other comprehensive income / (loss)                   6           (88)
---------------------------------------------------------------------------

Total comprehensive loss for the period                (2,117)         (568)
---------------------------------------------------------------------------
---------------------------------------------------------------------------


Condensed Interim Consolidated Balance Sheet
(Unaudited, expressed in thousands of United States Dollars)

                                               At March 31, At December 31,
                                                       2014            2013
---------------------------------------------------------------------------
Assets
Non-current assets
Intangible assets                                   361,891         344,990
Property, plant and equipment                           196             179
---------------------------------------------------------------------------
                                                    362,087         345,169
---------------------------------------------------------------------------
Current assets
Cash and cash equivalents                           121,984         142,588
Other current assets                                  1,799             194
---------------------------------------------------------------------------
                                                    123,783         142,782
---------------------------------------------------------------------------
Assets associated with discontinued
 operations                                               2               3
---------------------------------------------------------------------------
Total assets                                        485,872         487,954
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Liabilities and equity
Current liabilities
Accrued interest expense on bonds                     6,612           2,252
Accounts payable and accrued expenses                 3,527           7,458
Current tax liabilities                                  19              92
---------------------------------------------------------------------------
                                                     10,158           9,802
---------------------------------------------------------------------------
Non-current liabilities
Borrowings                                          147,201         147,050
Provisions                                            1,077           1,185
---------------------------------------------------------------------------
                                                    148,278         148,235
---------------------------------------------------------------------------
Liabilities associated with discontinued
 operations                                             417             928
---------------------------------------------------------------------------
Total liabilities                                   158,853         158,965
---------------------------------------------------------------------------
Equity
Share capital                                       534,068         534,068
Share based payments reserve                          4,865           4,718
Cumulative translation adjustment                        33              27
Accumulated deficit                                (211,947)       (209,824)
---------------------------------------------------------------------------
Total equity                                        327,019         328,989
---------------------------------------------------------------------------
Total liabilities and equity                        485,872         487,954
---------------------------------------------------------------------------
---------------------------------------------------------------------------

The total assets reported at the end of the first quarter of 2014 have decreased by $2.1 million relative to the total assets reported at the end of 2013, which was due to the use of cash on expenses from continuing operations and accounts payable during this period.

The decrease by $20.6 million in the cash position of the Company during the three months ended March 31, 2014 was due to cash outflows of $13.8 million on Atrush Block appraisal and development activities, $0.6 million on G&A and other cash expenses and $0.5 million used on discontinued operations and to negative cash movements due to changes in working capital items of $5.7 million.


Condensed Interim Consolidated Cash Flow Statement
(Unaudited, expressed in thousands of United States Dollars)

                                                 For the three months ended
                                                                  March 31,
                                                       2014            2013
---------------------------------------------------------------------------
Operating activities
Net loss from continuing operations                  (2,108)           (460)
Adjustments for:
Interest expense on senior secured bonds -
 net                                                  1,336               -
Share based payments expense                            147               1
Foreign exchange loss / (gain)                           21             (41)
Depreciation and amortisation expense                    11              19
Interest income                                          (2)             (9)
Changes in current tax liabilities                      (73)            (27)
Changes in provisions                                  (108)              -
Changes in other current assets                      (1,605)           (110)
Changes in accounts payable and accrued
 expenses                                            (3,931)         (2,893)
Cash used in discontinued operations                   (525)             (2)
---------------------------------------------------------------------------
Net cash outflows to operating activities            (6,837)         (3,522)
---------------------------------------------------------------------------

Investing activities
Interest received on cash deposits                        2               9
Purchase of property, plant and equipment               (36)              -
Purchases of intangible assets                      (13,717)         (2,363)
---------------------------------------------------------------------------
Net cash outflows to investing activities           (13,751)         (2,354)
---------------------------------------------------------------------------

Financing activities
---------------------------------------------------------------------------
Net cash flows from financing activities                  -               -
---------------------------------------------------------------------------

Effect of exchange rate changes on cash and
 cash equivalents                                       (16)            (40)
---------------------------------------------------------------------------

Change in cash and cash equivalents                 (20,604)         (5,916)
Cash and cash equivalents, beginning of the
 period                                             142,588          41,216
---------------------------------------------------------------------------
Cash and cash equivalents, end of the period        121,984          35,300
---------------------------------------------------------------------------
---------------------------------------------------------------------------

OUTLOOK

The outlook to the end of 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.

Drilling and testing of the AT-4 appraisal/development well has been completed during the second quarter of 2014. Drilling plans for the remainder of the year 2014 include drilling of CK-5, the third Phase 1 development well, and CK-6 well, a Phase 2 appraisal well. Both CK-5 and CK-6 are expected to spud during the second quarter. Further testing of the AT-3 well will also be conducted during 2014 following a planned re-entry. Access and location preparations are also underway for CK-7.

The front end engineering design ("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 was commenced in early 2014.

Plans are being put in place to implement a single dedicated feeder pipeline between Atrush and tie-in point at Kurdistan Crude Pipeline pumping station #2 ("KCP2") at kilometre 92 on the KRG export pipeline. The final route being is finalised. The pipeline FEED has been awarded to KAR Group/ILF Consulting Engineers.

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. During the three months ended March 31, 2014 the Company spent $18.6 million of the budgeted total for the year 2014.

The Company believes that based on the forecasts and projections they have prepared that its financial resources currently available will be sufficient for it 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 condensed interim consolidated financial statements, notes to the financial statements and management's discussion and analysis have been filed on SEDAR (www.sedar.com) and are available on the Company's website (www.shamaranpetroleum.com).

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
"We do one of the best file systems in the world. We learned how to deal with Big Data many years ago and we implemented this knowledge into our software," explained Jakub Ratajczak, Business Development Manager at MooseFS, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
When applications are hosted on servers, they produce immense quantities of logging data. Quality engineers should verify that apps are producing log data that is existent, correct, consumable, and complete. Otherwise, apps in production are not easily monitored, have issues that are difficult to detect, and cannot be corrected quickly. Tom Chavez presents the four steps that quality engineers should include in every test plan for apps that produce log output or other machine data. Learn the ste...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning provides predictive models which a business can apply in countless ways to better understand its customers and operations. Since machine learning was first developed with flat, tabular data in mind, it is still not widely understood: when does it make sense to use graph databases and machine learning in combination? This talk tackles the question from two ends: classifying predictive analytics methods and assessing graph database attributes. It also examines the ongoing lifecycl...
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
In this Women in Technology Power Panel at 15th Cloud Expo, moderated by Anne Plese, Senior Consultant, Cloud Product Marketing at Verizon Enterprise, Esmeralda Swartz, CMO at MetraTech; Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems; Seema Jethani, Director of Product Management at Basho Technologies; Victoria Livschitz, CEO of Qubell Inc.; Anne Hungate, Senior Director of Software Quality at DIRECTV, discussed what path they took to find their spot within the tec...