Operational Highlights

ShaMaran Petroleum Corp. is in the business of developing and producing oil and gas. The Company has a 27.6% participating interest in the Atrush block, Kurdistan Region of Iraq through its wholly owned subsidiary General Exploration Partners, Inc.

In addition, the Company holds an 18% participating interest in the Sarsang block, Kurdistan Region of Iraq through its wholly owned subsidiary ShaMaran Sarsang A/S.

Year End 2022

Corporate Highlights – the Sarsang acquisition

  • On September 14, 2022, the Company announced the closing of the Sarsang acquisition.  ShaMaran has become a more diversified company with stakes in three world class producing oil fields (Atrush, Swara Tika and East Swara Tika) in Kurdistan with improved oil qualities and complementary production horizons.

Financial Highlights

  • Delivered Q4 2022 oil sales of $53.2 million; for the full year (“FY”) year 2022 the Company achieved the highest-ever annual oil sales revenues of $176.7 million;
  • Generated cash flow from operations of $12.6 million for Q4 2022 and $105.3 million for FY 2022;
  • Reported very strong EBITDAX of $39.6 million in Q4 2022 and $140.1 million for FY 2022, representing a 210% increase over the EBITDAX of FY 2021;
  • Merged existing bonds into one single $300 million issue bond, with interest on all bonds fully paid to January 30, 2023;
  • Acquired more of its own bonds, and currently owns in excess of 10% of the 2025 bond; and
  • Payments have been received to date for oil sales through to August 2022, for both Atrush and Sarsang. The Company (together with other International Oil Companies) remains in discussions with the KRG about the appropriate recovery mechanism for these receivables, however in line with precedents full recovery is expected.

Operational Highlights

  • As of year-end 2022, the Atrush field achieved a cumulative production of approximately 67 MMbbls and the Sarsang fields a cumulative production of approximately 55 MMbbls;
  • Grew the Company’s gross 2P reserves3 by 225% from 30.4 MMbbls at December 31, 2021 to 68.3 MMbbls at December 31, 2022, which resulted in a ShaMaran record high 2P net reserves replacement ratio of 950% and extended the Company’s 2P Reserves Life Index4 to nearly 12 years;
  • Reported Q4 2022 gross average production of approximately 75,697 barrels oil per day (“bopd”), resulting in 16,761 bopd net to ShaMaran;
  • Recorded FY 2022 lifting costs per barrel of $5.47 which was higher than 2021 lifting costs of $5.12 per barrel but within the 2022 guidance (the increase was mainly due to higher diesel prices); and
  • Invested $22.2 million in FY 2022 Atrush net capital expenditures.

2023 Guidance

With steady oil prices in 2023, the Company anticipates a continuation of strong operating cash flow that will be supported with prudent capital deployment in the coming year. The Company will update the market and this 2023 guidance as may be necessary following approval by the Kurdistan Regional Government of Iraq (“KRG”) of the proposed Atrush 2023 budget as well as the implementation of a new KRG receivable repayment mechanism.

ShaMaran’s 2023 guidance for the Atrush and Sarsang blocks is:

Net Average Daily Production 15 kbopd - 18 kbopd5
Net capital expenditures US$64 million6
Net operating costs US$41 million7
Average lifting costs per barrel US$5.40 - US$6.608
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