Click here to close now.


News Feed Item

ShaMaran Q2 2014 Financial and Operating Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/22/14 -- ShaMaran Petroleum Corp. ("ShaMaran" or the "Company") (TSX VENTURE:SNM)(OMX:SNM) is pleased to announce its financial and operating results for the three and six months ended June 30, 2014. Unless otherwise stated all currency amounts indicated as "$" in this news release are expressed in thousands of United States dollars.


--  The Chiya Khere-5(1) ("CK-5") development well was drilled to a measured
    depth ("MD") of 2,098 metres which was reached on June 28, 2014. The
    well was spudded on May 16, 2014 from the same well pad used for the
    Atrush-1 well discovery (the "Chamanke-A" pad) and the bottom hole
    location was approximately 870 metres west southwest of the well pad.
    CK-5 has been suspended pending completion planned in early 2015 as a
    Phase 1 producer.
    (1) Approved changes to terminology relating to the Atrush Block,
    effective from 2014, include well names. Following the Atrush-4 well all
    future wells on the Atrush block will be prefixed with "Chiya Khere" (or
    "CK"), rather than with "Atrush". 
--  On April 16, 2014 the Company announced the test results of the Atrush-4
    ("AT-4") appraisal and development well which was drilled to a MD 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. AT-4 is a deviated well with bottom hole
    location approximately 2.2 kilometres southeast of the surface location.
    AT-4 has been suspended as a Phase 1 producer. 
--  A second rig will be used to drill the Chiya Khere-6 ("CK-6"), the
    second eastern area appraisal well. CK-6 is planned to spud in 2014 and
    will be drilled from the same pad (the "Chamanke-C" well pad) used to
    drill Atrush-3 ("AT-3"), which was the first eastern area appraisal
    well. CK-6 has a bottom hole target approximately 1.1 kilometres
    southeast of AT-3. 
--  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. 
--  On May 15, 2014 the Company announced the listing on the Oslo Bors in
    Norway of the $150 million of senior secured bonds which were issued in
    November 2013 by General Exploration Partners, Inc. ("GEP"), a wholly
    owned subsidiary of the Company. The ticker for the bonds is "GEP01". 
--  At June 30, 2014 the Company had a cash balance of $102.8 million and
    working capital of $94.4 million. 


During the reporting period 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 $1.9 million in the second quarter of 2014, which was primarily driven by net 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)

                                      Three months ended    Six months ended
                                                June 30,            June 30,
                                          2014      2013      2014      2013
Expenses from continuing operations                                         
General and administrative expense       (462)     (355)   (1,018)     (805)
Share based payments expense              (61)     (565)     (208)     (566)
Depreciation and amortisation                                               
 expense                                  (13)      (16)      (24)      (35)
Impairment loss                              -      (84)         -      (84)
Loss before finance items and income                                        
 tax expense                             (536)   (1,020)   (1,250)   (1,490)
Finance income                              26        10        13        37
Finance cost                           (1,309)      (23)   (2,658)         -
Net finance (cost) / income            (1,283)      (13)   (2,645)        37
Loss before income tax expense         (1,819)   (1,033)   (3,895)   (1,453)
Income tax expense                        (23)      (10)      (55)      (50)
Loss from continuing operations        (1,842)   (1,043)   (3,950)   (1,503)
Discontinued operations                                                     
Loss from discontinued operations          (1)       (7)      (16)      (27)
Loss for the period                    (1,843)   (1,050)   (3,966)   (1,530)
Other comprehensive (loss) / income                                         
Currency translation differences          (17)        11      (11)      (77)
Total other comprehensive (loss) /                                          
 income                                   (17)        11      (11)      (77)
Total comprehensive loss for the                                            
 period                                (1,860)   (1,039)   (3,977)   (1,607)

Condensed Interim Consolidated Balance Sheet

(Unaudited, expressed in thousands of United States Dollars)

                                                           At June  December
                                                          30, 2014  31, 2013
Non-current assets                                                          
Intangible assets                                          379,958   344,990
Property, plant and equipment                                  180       179
                                                           380,138   345,169
Current assets                                                              
Cash and cash equivalents                                  102,780   142,588
Other current assets                                           246       194
                                                           103,026   142,782
Assets associated with discontinued operations                   -         3
Total assets                                               483,164   487,954
Liabilities and equity                                                      
Current liabilities                                                         
Accounts payable and accrued expenses                        6,304     7,458
Accrued interest expense on bonds                            2,252     2,252
Current tax liabilities                                         27        92
                                                             8,583     9,802
Non-current liabilities                                                     
Borrowings                                                 147,354   147,050
Provisions                                                   1,610     1,185
                                                           148,964   148,235
Liabilities associated with discontinued operations            397       928
Total liabilities                                          157,944   158,965
Share capital                                              534,068   534,068
Share based payments reserve                                 4,926     4,718
Cumulative translation adjustment                               16        27
Accumulated deficit                                      (213,790) (209,824)
Total equity                                               325,220   328,989
Total liabilities and equity                               483,164   487,954

The total assets reported at June 30, 2014 have decreased by $2.5 million relative to the total assets reported at the end of 2013, which was primarily due to the use of cash on expenses from continuing operations and accounts payable during the reporting period.

The decrease by $39.8 million in the cash position of the Company during the six months ended June 30, 2014 was due to cash outflows of $28.7 million on Atrush Block appraisal and development activities, $8.6 million on interest payments to bondholders, $1.2 million on G&A and other cash expenses, $0.8 million in negative cash movements due to changes in working capital items, and $0.5 million used on discontinued operations.

Condensed Interim Consolidated Cash Flow Statement

(Unaudited, expressed in thousands of United States Dollars)

                                      Three months ended    Six months ended
                                                June 30,            June 30,
                                          2014      2013      2014      2013
Operating activities                                                        
Net loss from continuing operations    (1,842)   (1,043)   (3,950)   (1,503)
Adjustments for:                                                            
  Interest expense on senior secured                                        
   bonds - net                           1,307         -     2,643         -
  Share based payments expense              61       565       208       566
  Depreciation and amortisation                                             
   expense                                  13        16        24        35
  Foreign exchange (gain) / loss          (15)        23         6      (18)
  Impairment loss                            -        84         -        84
  Interest income                         (11)      (10)      (13)      (19)
  Changes in provisions                    533        61       425        61
  Changes in inventories                     -       114         -       114
  Changes in other current assets        1,553        31      (52)      (79)
  Changes in current tax liabilities         8      (10)      (65)      (37)
  Changes in accounts payable and                                           
   accrued expenses                      2,777     1,421   (1,154)   (1,472)
Cash used in discontinued operations      (19)      (17)     (544)      (19)
Net cash inflows from / (outflows                                           
 to) operating activities                4,365     1,235   (2,472)   (2,287)
Investing activities                                                        
Interest received on cash deposits          11        10        13        19
Purchase of property, plant and                                             
 equipment                                 (7)         -      (43)         -
Purchases of intangible assets        (14,948)   (7,957)  (28,665)  (10,320)
Net cash outflows to investing                                              
 activities                           (14,944)   (7,947)  (28,695)  (10,301)
Financing activities                                                        
Interest payments to bondholders       (8,625)         -   (8,625)         -
Net cash outflows to financing                                              
 activities                            (8,625)         -   (8,625)         -
Effect of exchange rate changes on                                          
 cash and cash equivalents                   -      (13)      (16)      (53)
Change in cash and cash equivalents   (19,204)   (6,725)  (39,808)  (12,641)
Cash and cash equivalents, beginning                                        
 of the period                         121,984    35,300   142,588    41,216
Cash and cash equivalents, end of                                           
 the period                            102,780    28,575   102,780    28,575


The outlook is as follows:

Atrush Block

The Abu Dhabi National Energy Company ("TAQA"), operator of the Atrush Block, announced on August 9, 2014 that, as a result of recent developments and escalating instability around the Kurdistan Region of Iraq, it had suspended its operations at the Atrush Block as a precautionary measure and significantly reduced staffing levels. The Company continues to closely monitor the security situation with its Atrush partners and the Kurdistan Regional Government ("KRG").

Drilling plans for the remainder of the year 2014 include resumption of drilling operations on CK-8, the fourth Phase 1 development well, and the CK-6 well, a Phase 2 appraisal well. CK-8, spudded on July 19, 2014, has now been safely suspended, and CK-6 is planned to spud in 2014. Further testing of the AT-3 well is also scheduled to be conducted during 2014 following a planned re-entry. CK-7 is expected to spud in 2015.

Works are in progress to implement the 30,000 gross bopd Phase 1 production facility. The FEED for the Phase 1 Production Facilities was completed in October 2013. The production modules for the facility are currently being fabricated.

The FEED contract has been awarded to KAR Group/ILF Consulting Engineers for a dedicated feeder pipeline between the Chiya Khere production facility and the tie-in point to the main export pipeline at KCP2 at kilometre 92. The definitive route is currently being finalized.

Plans are to mobilise a workover rig in 2015 which will complete the wells for production. Following testing and commissioning of the production facilities and feeder pipeline first production is anticipated in 2015.


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 six months ended June 30, 2014 the Company spent $37.8 million of the budgeted total for the year 2014.

The Company believes that based on the forecasts and projections they have prepared and potential financing initiatives which will be pursued as required the Company will have financial resources sufficient 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 as required.

New Ventures

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


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 ( and are available on the Company's website (


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.


Pradeep Kabra, President and CEO

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]

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
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Y...
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNu...
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem"...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, San...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at, examined how Docker has evolved into a highly effective tool for application del...
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
We are rapidly moving to a brave new world of interconnected smart homes, cars, offices and factories known as the Internet of Things (IoT). Sensors and monitoring devices will touch every part of our lives. Let's take a closer look at the Internet of Things. The Internet of Things is a worldwide network of objects and devices connected to the Internet. They are electronics, sensors, software and more. These objects connect to the Internet and can be controlled remotely via apps and programs. ...
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, explored the IoT cloud-based platform technologies driving t...