ShaMaran Petroleum

ShaMaran Petroleum Corp. is a Canadian independent oil development and exploration company with a 27.6% interest in the Atrush Block production sharing contract. The Atrush Block is located in the Kurdistan Region of Iraq.[2] The company listed on the TSX Venture Exchange and the Nasdaq First North Growth Market (Stockholm) under the symbol "SNM". https://shamaranpetroleum.com

ShaMaran Petroleum Corp.
TypePublic
TSX-V: SNM
IndustryOil and gas
FoundedOctober 3, 1991 (1991-10-03)[1]
Headquarters
Vancouver
,
Canada
Key people
Adel Chaouch
(President and CEO)
ProductsPetroleum
Natural gas
Websitewww.shamaranpetroleum.com


Management

Dr. Adel Chaouch, President, CEO and Director

Alex Lengyel, Chief Commercial Officer and Corporate Secretary


Directors

Chris Bruijnzeels, Chairman

Dr. Adel Chaouch, President & CEO

Keith Hill

Terry L. Allen

Mike Ebsary

William Lundin


2021 Guidance

  • Atrush field gross average daily production is expected to range from 39,000 barrels of oil per day (“bopd”) to 44,000 bopd.  Resumption of deferred drilling and completion spending in 2021 is expected to generate quarter-on-quarter production growth;
  • The Atrush capital expenditures for 2021 are planned at US$53.2 million (US$14.7 million net to ShaMaran), pending final approval by the Ministry of Natural Resources of the Kurdistan Regional Government of Iraq (“KRG”).  The Atrush 2021 capital program includes drilling and completion of a production well with targeted offtake rates of over 4,000 bopd and initiation of the gas solution project which will significantly reduce emissions and operating costs from reliance on diesel use;
  • The Atrush operating expenditure is forecast to be US$80 million (US$22 million net to ShaMaran) for 2021, in line with 2020 actual operating costs;
  • Atrush average lifting costs per barrel are estimated to range from US$4.70 to US$5.70.  Atrush lifting costs are mainly fixed costs and dollar-per-barrel estimates should decrease with increasing levels of production and operational efficiencies;
  • Payments from the KRG for oil delivered in 2021 are expected to continue to be made one month after production.  Recovery of the US$41.7 million receivable owed to the Company by the KRG for November 2019 to February 2020 entitlements has started as per the KRG’s December 2020 proposed repayment mechanism of sharing equally the incremental revenue if Brent prices exceed US$50 per barrel in any month;
  • ShaMaran will continue to implement prudent management of its cashflow in 2021 with an annual corporate budget of US$5.6 million, a 30% reduction in spending over 2020; and
  • Following the amendment of the ShaMaran bond terms in January 2021 the Company intends to use its free cash flow to buy its bonds should commercially attractive rates be available in the market and as a result will be reducing its debt burden over the coming year and will update the market of such activity on a quarterly basis.


2020 Operational Highlights

  • 2020 oil production increase of 39% (2020 vs 2019);
  • Cumulative production of 40 million barrels achieved on January 4, 2021 despite a significantly reduced 2020 development program due to the global pandemic and first quarter 2020 collapse of crude oil prices;
  • Average production of approximately 40,800 barrels of oil per day (“bopd”) for the fourth quarter of 2020; lower than the year’s average due deferral of capital development wells, and operational interventions aggregated in this quarter;
  • Full year 2020 average production of approximately 45,100 bopd in line with 2020 guidance;
  • Full year 2020 lifting costs per barrel of $5.08 in line with 2020 guidance and a 31% decrease vs. 2019 lifting costs;
  • Full year 2020 capital expenditure of $34 million ($9.4 million net to ShaMaran) in line with the capex program as revised in April 2020 in response to the global pandemic and collapse of oil prices; and
  • Atrush Property gross 2P reserves[1] increased to 109.9 MMbbls as at December 31, 2020 from 108.5 in 2019 being a 108% reserves replacement and Company’s gross 2P reserves from 29.9 MMbbls to 30.3 MMbbls

(1) Reserves estimates, contingent resource estimates and estimates of future net revenue in respect of ShaMaran’s oil and gas assets in the Atrush Block are effective as at December 31, 2020, and are included in the report prepared by McDaniel & Associates Consultants Ltd. (McDaniel), an independent qualified reserves evaluator, in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (NI 51-101) and the Canadian Oil and Gas Evaluation Handbook (the COGE Handbook) and using McDaniel's  January 1, 2021 price forecasts.

For further information regarding 2021 Guidance and 2020 Operational Highlights please see https://www.shamaranpetroleum.com/investors/financial-reports-other-filings/financial-reports/

See also

References
  1. "ShaMaran Petroleum Corp. - Company Spotlight Profile". Companyspotlight.com. Retrieved 12 August 2018.
  2. "Archived copy" (PDF). Archived from the original (PDF) on 2016-03-03. Retrieved 2013-03-30.CS1 maint: archived copy as title (link)
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.