ShaMaran Petroleum Corp. (TSX-V: SNM, OTC: SHASF, Forum) released its financial and operating results this week for the three months and year ended December 31st, 2020.
In 2020, oil production increased 39% (2020 vs 2019),with cumulative production of 40 million barrels achieved on January 4th, 2021 despite a significantly reduced 2020 development program due to the global pandemic and first quarter 2020 collapse of crude oil prices. Q4 2020 saw an average production of approximately 40,800 barrels of oil per day (bopd), which was 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.
President and Chief Executive Officer of ShaMaran, Dr. Adel Chaouch commented that in 2020, the team had witnessed the profound impact of the global COVID-19 pandemic and the collapse of crude prices on the oil and gas industry worldwide.
“Despite these tremendous challenges, ShaMaran remained resilient, delivering on its targets with a record production in excess of 16MM barrels in Atrush and a continuation of full replacement of 2P reserves year on year. The Company also successfully implemented rigorous cost reduction measures and secured new agreements with the bondholders that not only resolved its liquidity shortfall but also that put the Company on a stronger financial footing.”
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A Kurdistan focused Canadian oil development and exploration Company, ShaMaran holds a 27.6% working interest, through its wholly owned subsidiary General Exploration Partners, Inc., in the Atrush Block. SNM recently reported
an increase in the Atrush Property Gross 2P reserves to 109.9 million barrels of oil (MMbbls) at December 31, 2020 , up from 108.5 MMbbls at the end of 2019.
FULL DISCLOSURE: ShaMaran Petroleum Corp. is a client of Stockhouse Publishing.