ShaMaran 2011 Year End Financial and Operating Res
Boy Atrush1 sure sound promising, "flowed over 6393 bopd and well analysis indicated that intervals are capable of much higher rates when completed for production.. On their presentation they use the 10,000 bopd mark... Lost some money last year but would be nice to get going in right direction over the next few months..
========================
ShaMaran 2011 Year End Financial and Operating Results
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 29, 2012) -
ShaMaran Petroleum Corp. ("ShaMaran" or the "Company") (TSX VENTURE:SNM)(OMX:SNM) is pleased to announce its financial and operating results for the year ended December 31, 2011
Highlights
A major oil discovery in the Atrush Block was announced by the Company on April 13, 2011. The Atrush 1 well flowed at rates totalling over 6,393 bopd of 26.5 API oil from three tests in the Middle and Upper Jurassic reservoirs and well analysis indicated that the intervals are capable of much higher rates when completed for production. The well was drilled in budget and on time to a total depth of 3,400 meters.
The Appraisal Work Programme and Budget on the Atrush Block has been submitted to the KRG. The Programme consists of 3D seismic and a number of appraisal wells and studies. 3D seismic acquisition is in progress and the construction of the location for the Atrush-2 appraisal well is underway with drilling operations planned to commence in May 2012. Planning for an Early Production facility to conduct a long term test in the field is also underway.
The Company's 100% owned subsidiary ShaMaran Petroleum BV entered into a production sharing contract ("PSC") on July 27, 2011 in respect of the Taza Block (formerly Block K42) in the Kurdistan Region of Iraq. ShaMaran holds a 20% working interest in the PSC, and Oil Search Iraq Limited ("OSIL") is the operator with a 60% working interest in the PSC. The Kurdistan Regional Government of Iraq ("KRG") holds a 20% working interest in the PSC with costs carried by ShaMaran and OSIL. Planning is underway for an exploration well with drilling operations expected to commence near the end of the second quarter of 2012.
Operations were discontinued in December 2011 in Pulkhana after disappointing testing results from the Pulkhana 9 well. On January 17, 2012 the Company signed a final binding agreement with the KRG to relinquish to the KRG the 60% working interests previously held in each of the Arbat and Pulkhana Production Sharing Contracts.
In February 2012 the Company received a Detailed Property Report ("the Report") from its third party auditors, McDaniel & Associates Consultants Ltd. The Report includes 124,782 Mboe as best estimate of Gross Estimated Contingent Resources and 87,910 Mboe as the unrisked best estimate of Gross Estimated Prospective Resources net to ShaMaran for the Company's two assets. These estimates are exclusive of amounts relating to the Pulkhana and Arbat Blocks which were relinquished in January 2012.
Cash proceeds of $CAD 51.0 million were raised by the Company ($CAD 49.7 million net of issuance costs) through a private placement of 127.5 million common shares at $CAD 0.40 per share which was concluded on November 15, 2011. In May 2011 the Company raised cash proceeds of $CAD 50.4 million ($CAD 49.5 million net of issuance costs) through a private placement of 56 million common shares at $CAD 0.90 per share.
The Company had a net loss of $210.9 million for the year ended December 31st, 2011 (2010: $1,093,000). The cash balance of the Company was $49.1 million as at December 31st, 2011 (2010: $58.7 million)
Financial and Operating Results for the year ended December 31st , 2011
(Unaudited: Expressed in thousands of United States Dollars)
During the year 2011 the Company continued its exploration campaign in respect of its petroleum properties in Kurdistan constituting the continuing operations of the Company which currently have no corresponding revenue. The net loss in 2011 was driven by the impairment losses relating to the suspension in December 2011 of all operations associated with the Pulkhana and Arbat Blocks and the relinquishment of these PSCs which was completed on January 17, 2012.