VANCOUVER, April 1, 2020 /CNW/ - ShaMaran Petroleum Corp. (“ShaMaran” or the “Company”) (SNM - TSXV, Nasdaq First North Growth Market) provides the following update to shareholders. View PDF Version

The Company confirms that a payment of $16.2 million ($4.6 million net to ShaMaran) has been received from the Kurdistan Regional Government (“KRG”) for Atrush crude oil sales during October 2019. The payment is net of production bonus amounts owing to the KRG under the terms of the Atrush production sharing contract relating to the 25 million barrel cumulative production milestone reached in February, the Company’s share of which was $3.7 million.

In these challenging times we are reviewing all options that will serve in the best interest of ShaMaran.  The adverse market conditions we are currently witnessing are unprecedented and the Company is proactively assessing its best path forward.

ShaMaran took swift action to mitigate any potential impact from the Covid-19 pandemic to production operations.  We have been following all recommended guidelines for some time and implementing them as necessary, including travel bans, containment measures, and compliance with other local health requirements. In the field, the KRG has implemented a temporary, but extended curfew on the major cities including Erbil and a mandatory quarantine on travellers from Europe. Local staff in Erbil are set up to work remotely from home. Operations have made the necessary adjustments to ensure the safety of site personnel.

One of the major uncertainties we all face is the duration and extent of the economic fallout from Covid-19 as well as the ongoing “oil price war” between Saudi Arabia and the Russian Federation. As always, in good markets and bad, ShaMaran looks to optimize cost efficiencies.  Given the rapid onset and severity of the current global market conditions, the Company took immediate steps to reduce expenditures and is working closely with its partner on ways to further reduce capital outlay.

Even with a reduced budget and personnel, production has continued at a steady pace, attesting to the quality of the Atrush Field.   However, given the current low oil prices and delayed payments for the production, we are actively looking at opportunities and options that will represent the best long-term value for ShaMaran.  We will provide updates as we achieve more visibility on our action plan going forward.

OTHER

This information is information that ShaMaran Petroleum Corp is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 5:30 p.m. ET on April 1, 2020.  Pareto Securities AB is the Company’s Certified Advisor on Nasdaq First North Growth Market, +46 84 02 5000, certifiedadviser.se@paretosec.com.

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.

ABOUT SHAMARAN

ShaMaran Petroleum Corp. is a Kurdistan focused oil development and exploration company which holds a 27.6% working interest in the Atrush Block through its wholly-owned subsidiary, General Exploration Partners, Inc.

ShaMaran is a Canadian oil and gas company listed on the TSX Venture Exchange and the Nasdaq First North Growth Market (Stockholm) under the symbol “SNM”.

SOURCE ShaMaran Petroleum Corp.