Message to Shareholders

ShaMaran 2019 and Beyond

The year 2019 was an exciting and productive one for ShaMaran Petroleum. Following first oil from the Atrush Field a short two and a half years ago, the Company’s focus has been on production growth. In 2019, the Atrush Field became one of the top five producing fields in Kurdistan. Increased capacity infrastructure and facilities were constructed and installed and 4 wells were completed and tied-in with the result that production increased 56% over the year with continued growth on the horizon.

The Company would like to wrap up its investor outreach for 2019 by reflecting on the progress the Company made during the year and the recognition the Company received from industry and various media outlets. Looking ahead to 2020, we expect another busy year of meaningful milestones and progress designed to advance the Atrush Field to its full potential.

ShaMaran in the Media

The success of the Atrush Field has been tracked in the Oil & Gas Journal, Pipeline Oil & Gas News, MENAFN, Bloomberg, NS Energy and many more.

ShaMaran in the News

February 1, 2019
Bonds outstanding to be reduced from $240 million to $190 million, a reduction of $50 million. A further reduction to $175 million is expected by July, 2020.https://www.shamaranpetroleum.com/news/bondholders-agree-to-amended-terms-122705/

February 15, 2019
ShaMaran reported an increase of 11% in estimated Proven plus Probable (“2P”) Oil Reserves for the Atrush block as of December 31, 2018 after accounting for Atrush 2018 production. This equates to a 2P Reserves replacement ratio of 2018 production of 140%. Atrush field gross production 2019 guidance estimated to range from 30,000 bopd to 35,000 bopd.https://www.shamaranpetroleum.com/news/shamaran-reports-140-reserve-replacement-ratio-in-122708/

April 3, 2019
The planned heavy oil extended well test facility was installed and commissioned with live oil from the Chiya Khere 10 production well (“CK-10”). CK-10 oil will subsequently be used as a diluent to assist in the processing and export of heavy oil from the Atrush 3 well (“AT-3”).https://www.shamaranpetroleum.com/news/shamaran-update-on-acquisition-and-heavy-oil-test-122710/

May 15, 2019
Dr. Adel Chaouch was appointed President and CEO of ShaMaran. Dr. Chaouch previously headed Marathon Oil Company’s interests in the MENA region. He presided over Marathon Oil Kurdistan, a business that he had been overseeing since 2011, and in that capacity was ShaMaran’s partner in the Atrush block.https://www.shamaranpetroleum.com/news/shamaran-announces-changes-in-senior-management-an-122712/

May 31, 2019
The Company completed the acquisition of an additional 7.5% participating interest in the Atrush Block bringing ShaMaran’s total interest in Atrush up to 27.6%. An important transaction that significantly increased our investment base. Concurrently, Atrush field production increased to 32,000 barrels of oil per day.https://www.shamaranpetroleum.com/news/shamaran-completes-acquisition-and-provides-produc-122713/

August 20, 2019
Atrush Field reaches 1 Million barrel monthly production milestonehttps://www.shamaranpetroleum.com/news/atrush-reaches-1-million-barrel-monthly-production-122717/

October 21, 2019
Atrush field daily total production reaches 45,000 barrels of oil per day (“bopd”). The Company maintains its Atrush average daily production guidance for 2019 of between 30,000 and 35,000 bopd with target exit rate between 45,000 bopd and 50,000 bopd.https://www.shamaranpetroleum.com/news/shamaran-announces-atrush-reaches-45-000-barrels-o-122720/

November 1, 2019
Atrush oil field total production exceeds 20,000,000 barrels.https://www.shamaranpetroleum.com/news/shamaran-atrush-exceeds-20-000-000-barrels-of-oil-122721/

December 12, 2019
ShaMaran announces that two outstanding payments for oil sales will be paid in January, 2020. Average production for the month of November was 43,360 bopd. Since the beginning of the year, production has increased 56% and the Company has invested significantly in infrastructure to facilitate continued production growth.https://www.shamaranpetroleum.com/news/shamaran-atrush-update-122723/

December 16, 2019
The Atrush Field achieves a daily production rate of 50,000 barrels.https://www.shamaranpetroleum.com/news/shamaran-atrush-update-122724/

If you have any questions regarding the above highlighted news, please do not hesitate to contact the Company at: investor.relations@shamaranpetroleum.com

Dr. Adel Chaouch, President and CEO, and all the staff at ShaMaran Petroleum appreciate your support and wish everyone a very Happy New Year.

Best regards,

Adel

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