Atrush Block: World-Class Oil Project

ShaMaran Petroleum Corp. is a Canadian independent oil development and exploration company with a 27.6% working interest in the Atrush Block production sharing contract. The Atrush Block is located in the Kurdistan region of northern Iraq.

The Atrush Block is a high-quality oil field that has a large production base with significant growth potential. ShaMaran is generating cash flow that can fund organic growth and the Company is now strongly positioned to act on new accretive opportunities as they present themselves. As a Lundin Group Company, ShaMaran can leverage the expertise and strength of a family that has been building resource companies around the world for more than 40 years.

Field production guidance for 2019 is an average of 30,000 to 35,000 bopd with an expected 2019 exit production rate of 45,000 to 50,000 bopd. Installation of additional facilities during 2020 is expected to increase production capacity towards 80,000 bopd and an investment decision related to increasing Atrush production up to 100,000 bopd is expected mid-2020.

Atrush Owership Interest

Atrush Owership Interest

Simplified Atrush Production Sharing Agreement

Simplified Atrush Production Sharing Agreement Learn More

Production

Oil Production at Atrush Block commenced July 2017

Artush Installed production facilities have a capacity of over 50,000 barrels of oil per day (“bopd”). By mid-2019 twelve wells have been drilled with seven wells producing. Atrush’s production guidance for 2019 is 30,000 to 35,000 bopd, with an expected production of 45,000 to 50,000 bopd at 2019 exit. Installation of additional facilities during 2020 is expected to increase production capacity towards 80,000 bopd and an investment decision related to increasing Atrush production up to 100,000 bopd is expected mid-2020.

ShaMaran is generating cash flow that can fund organic growth and the Company is now strongly positioned to act on new accretive opportunities as they present themselves. As a Lundin Group Company, ShaMaran can leverage the expertise and strength of a family that has been building resource companies around the world for more than 40 years.

Monthly Production

Monthly Production

Quarterly Production Data

Quarterly PeriodTotal Field Production (bbl)Average Daily Production (bpd)Average NetbackAverage Lifting Cost
Q3 20171.3 million14,600$36.88$8.54
Q4 20172.0 million21,700$47.00$8.09
Q1 20182.1 million23,600$51.14$6.06
Q2 20181.44 million15,800$58.88$7.97
Q3 20182.0 million21,700$59.72$7.92
Q4 20182.52 million27,400$52.58$7.84
Q1 20192.37 million26,300$47.76$8.89
Q2 20192.58 million28,300$53.06$9.28
Q3 20193.06 million33,167$46.43$7.62

Strong Cash Flow

In Million USDQ3.2019Q2.2019Q1.2019
Operating cash, net of G&A and other cash expenses9.77.55.6
Net gain on Atrush acquisition0.0(9.5)-
Receivable/payable and working capital adjustments(0.8)(3.3)3.5
Cash in from operations9.0(5.4)9.1
KRG loans, interest and KRG carry receivables collected8.26.74.9
Purchase of additional interest in Atrush 10.0(18.4)-
Atrush Development(5.4)(1.2)(3.6)
Cash (out on) / in from investments2.9(12.9)1.3
Bonds repaid0.00.0(50.0)
Bond coupon interst payments(11.4)0.0(15.0)
Cash out on financing(11.4)0.0(65.0)
Total change in cash0.4(18.3)(54.6)
Opening cash19.637.992.5
Ending cash20.019.637.9

The Atrush Block is a high-quality oil field that has a large production base with significant growth potential.

The Atrush Block is located approximately 85 kilometers northwest of Erbil, the capital of Kurdistan, is 269 square kilometers in area and has oil proven in Jurassic fractured carbonates in the Chiya Khere structure. The structure is expressed at surface by the Chiya Khere mountain which runs east‐west for approximately 25 kilometers with an approximate width of 3.5 kilometers.

30,000
bopd
2017 Startup Capacity
45,000 - 50,000
bopd
2019 Exit Rate
80,000+ bopd
2020+ Next Development Phase
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