ShaMaran announces Atrush 2016 year-end reserves estimates
Friday, Feb 17, 2017
ShaMaran Petroleum Corp. ("ShaMaran" or the "Company") (TSX VENTURE:SNM)(OMX:SNM) reports estimated reserves and contingent resources for the Atrush block as of December 31, 2016. The reserves and contingent resources estimates were provided by McDaniel & Associates Consultants Ltd. ("McDaniel"), the Company's independent qualified resources evaluator, and were prepared in accordance with standards set out in the Canadian National Instrument NI 51-101 and Canadian Oil and Gas Evaluation Handbook (COGEH).
Limited new subsurface information was obtained during 2016, which resulted in no changes in Gross Working Interest Reserves and Contingent Resource estimates. Reserves Net Present Values and Net Reserves were updated to reflect timing of first production, projected costs, the fourth amendment to the Atrush production sharing contract, the Atrush Facilitation Agreement and oil price assumptions.
The reserves and net present values were estimated using forecast prices and costs. The sales oil price was based on the McDaniel January 1, 2017 Brent price forecast. All of the Atrush oil production is assumed to be exported via the Khurmala-Fishkabur pipeline to Turkey. A 35 kilometre pipeline is being built from the Atrush Field to a tie-in point on this export line and will be operated by the KRG. McDaniel estimates a discount to Brent crude oil to account for quality differential, marketing fees and pipeline tariff for export via Ceyhan in Turkey.
The contingent resources represent the likely recoverable volumes associated with further phases of development after Phase 1. These are considered to be contingent resources rather than reserves due to the uncertainty over the future development plan which will depend in part on further field appraisal and Phase 1 production performance.
Prospective resources have not been re-evaluated since December 31, 2013.
The Atrush Block is operated by the Abu Dhabi National Energy Company PJSC ("TAQA") and is held 39.9% by TAQA, ShaMaran Petroleum Corp, through its wholly owned subsidiary General Exploration Partners, Inc. 20.1% and Marathon Oil KDV B.V., (a wholly owned subsidiary of Marathon Oil Corporation (NYSE:MRO) 15%. Atrush reserves and resource estimates presented represent solely the view of ShaMaran and its experts.
This information in this release is subject to the disclosure requirements of ShaMaran Petroleum Corp. under the EU Market Abuse Regulation and the Swedish Securities Markets Act. This information was publicly communicated on February 16, 2017 at 11:30 p.m. Central European Time.ABOUT SHAMARAN
ShaMaran Petroleum Corp. is a Kurdistan focused oil development and exploration company with a 20.1% direct interest in the Atrush oil discovery. The Atrush Block is currently undergoing an appraisal and development campaign.
For more information, please visit: www.shamaranpetroleum.com