ShaMaran is a Canadian oil and gas company listed on the TSX Venture Exchange and the NASDAQ First North Growth Market (Sweden) under the symbol “SNM.” The Company has a 27.6% ownership interest in Atrush Block, a high‐quality oil field in Kurdistan that has a large production base with significant growth potential. As a Lundin Group Company, ShaMaran can leverage the expertise and strength of a group that has been building resource companies around the world for more than 40 years.
Oil production from Atrush commenced in July 2017. Installed production facilities have a capacity of over 50,000 barrels of oil per day (“bopd”). Fourteen wells have been drilled to date and ten wells are currently producing with a year to date 2020 production average of 46,504 bopd. Oil prices in the third quarter of 2020 have recovered and stabilized relative to the volatility in prices which prevailed in the first two quarters of the year following the onset of the coronavirus (“COVID‐19”)1 pandemic. At that time the Atrush partners reacted quickly to take responsible measures to scale back the development program in the current cycle yet retain the flexibility to allow for the ramp up of development activity in case of strengthening oil prices and at the same time preserve the magnitude and stability of Atrush oil production. Partners have continued to prudently manage Atrush on this basis and Atrush production guidance for 2020 is maintained at 44,000 to 50,000 bopd.
The Atrush Block is located in the Kurdistan Region of Iraq, approximately 85 kilometres northwest of Erbil, the capital of Kurdistan. The Atrush Block is 269 square kilometres in area and has oil proven in Jurassic fractured carbonates in the Chiya Khere structure. Total discovered oil in place in the Atrush Block is a low estimate of 1.6 billion barrels, a best estimate of 2.0 billion barrels and a high estimate of 2.6 billion barrels.
Atrush is continuously being appraised and further phases of development, including further drilling and possible facilities expansion, will be defined based on production data, appraisal information and economics.