Kurdistan-focused oil development and exploration company
ShaMaran Petroleum Corporation (TSX-V: SNM, OTC: SHASF, Forum) announced on Wednesday that its market Bonds in the principal amount of $4.95 Million had been retired. The Company's Bond amortization payment due in December 2021 has accordingly been reduced by 33%.
ShaMaran’s President and Chief Executive Officer Dr. Adel Chaouch explained that, as a result of continued sustained production in the Atrush field and Q1 2021’s increase in oil prices, the Company has been able to utilize its free cash to make purchases in the market as permitted by an amendment to its Bond terms.
“ShaMaran is committed to reducing its debt obligations and looks forward to making another positive report to the market at the end of the next quarter.”
For more details on these bonds, click
here.
SNM holds a 27.6% working interest, through its wholly owned subsidiary General Exploration Partners Inc., in the Atrush Block, located in the Kurdistan region of northern Iraq. In 2021 the Atrush field gross average daily production is expected to range from 39,000 barrels of oil per day to 44,000 barrels of oil per day. With further development, the field offers significant production growth potential.
The Company recently received payment of
$21.7 million ($7.3 million net to the Company) from the Kurdistan Regional Government for Atrush oil sales invoice entitlements for the month of January 2021. In addition, the Company has also been paid $1.04 million as the first monthly implementation of the KRG's proposed repayment mechanism for receivables.
FULL DISCLOSURE: ShaMaran Petroleum Corporation is a client of Stockhouse Publishing.