VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/14/13 -- ShaMaran Petroleum Corp. ("ShaMaran" or the "Company") (TSX VENTURE: SNM)(OMX: SNM) is pleased to announce its financial and operating results for the three months ended March 31, 2013. Unless otherwise stated all currency amounts indicated as "$" in this news release are expressed in thousands of United States dollars.
Highlights
-- A Field Development Plan for the Atrush Block was submitted for approval
to the KRG on May 7, 2013 which is in accordance with the terms of the
Atrush Block PSC.
-- The Atrush-3 appraisal well, located five kilometers to the east of the
Atrush-2 appraisal well, was spudded on March 25, 2013 with a planned
total depth of 1,700 meters.
-- The Company announced on February 4, 2013 an increase of 35% in Best
Estimate 2C Contingent Resources (gross) for the Atrush Block, from
465.6 MMBOE at December 31, 2011 to 627.3 MMBOE at the end of 2012. The
estimates were provided by the Company's independent qualified resources
evaluator, McDaniel & Associates Consultants Ltd., in a Detailed
Property Report prepared as at December 31, 2012.
-- On March 12, 2013 the Contractor entities to the Atrush Block PSC were
notified by the Kurdistan regional Government ("KRG") that it had
exercised its option to acquire a 25% Government Interest in accordance
with the provisions of the Atrush Block PSC.
-- At March 31, 2013 the Company had a cash balance of $35.3 million and
working capital of $26.7 million.
Financial and Operating Results for the three months ended March 31st, 2013
During the three months ended March 31, 2013 the Company continued its appraisal and development campaign in respect of the Atrush petroleum property located in the Kurdistan Region of Iraq which constitutes the continuing operations of the Company. Atrush currently generates no revenues. The net loss in the quarter principally relates to the general and administrative expenses incurred in respect of the continuing operations of the Company.
Condensed Interim Consolidated Statement of Comprehensive Income
(Unaudited, expressed in thousands of United States Dollars)
For the three months ended March 31,
2013 2012
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Expenses from continuing operations
General and administrative expense (450) (384)
Depreciation and amortisation expense (19) (49)
Share based payments (expense) / recovery (1) 2
Share of loss of associate - (66)
Impairment loss - (248)
Relinquishment costs - (25,732)
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Loss before finance items and income tax
expense (470) (26,477)
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Finance income 50 391
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Total finance income 50 391
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Loss before income tax expense (420) (26,086)
Income tax expense (40) (24)
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Loss from continuing operations (460) (26,110)
Discontinued operations
Loss from discontinued operations (20) (37)
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Loss for the period (480) (26,147)
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Other comprehensive (loss) / income :
Items that may be reclassified subsequently to
net income:
Currency translation differences (88) 33
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Total other comprehensive (loss) / income (88) 33
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Total comprehensive loss for the period (568) (26,114)
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Condensed Interim Consolidated Balance Sheet
(Unaudited, expressed in thousands of United States Dollars)
At At
March 31, December 31,
2013 2012
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Assets
Non-current assets
Intangible assets 305,911 303,549
Property, plant and equipment 232 257
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306,143 303,806
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Current assets
Other current assets 395 127
Inventories 198 198
Other receivables 46 204
Cash and cash equivalents 35,300 41,216
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35,939 41,745
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Assets associated with discontinued operations 1 3
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Total assets 342,083 345,554
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Liabilities
Current liabilities
Accounts payable and accrued expenses 4,134 7,027
Current tax liabilities 63 90
Deferred liability 5,000 5,000
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9,197 12,117
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Non-current liabilities
Provisions 120 120
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120 120
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Liabilities associated with discontinued
operations 1,957 1,941
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Total liabilities 11,274 14,178
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Equity
Share capital 534,068 534,068
Share based payments reserve 3,837 3,836
Cumulative translation adjustment (80) 8
Accumulated deficit (207,016) (206,536)
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Total equity 330,809 331,376
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Total liabilities and equity 342,083 345,554
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The cash position of the Company decreased by $5.9 million during first quarter of 2013. The decrease in the cash position was due to outflows of funds of $2.4 million on appraisal and development operations on the Atrush Block, $2.9 million on a reduction to accounts payable and accrued expenses, and 0.6 million on cash expenses and changes in other working capital items. The Company has a number of additional financing possibilities which will be pursued as required. The Company is confident that it will obtain the resources sufficient to satisfy its contractual obligations and commitments under the agreed budgets.
Condensed Interim Consolidated Cash Flow Statement
(Unaudited, expressed in thousands of United States Dollars)
For the three months ended March 31,
2013 2012
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Operating activities
Net loss from continuing operations (460) (26,110)
Adjustments for:
Interest income (9) (24)
Foreign exchange gain (41) (367)
Depreciation and amortisation expense 19 49
Income tax (27) (2)
Impairment loss - 248
Share based payments expense / (recovery) 1 (2)
Share of loss of associate - 66
Changes in trade and other receivables 158 (1,242)
Changes in other current assets (268) 270
Changes in inventories - 1,302
Changes in accounts payable and accrued
expenses (2,893) (15,572)
Cash used in discontinued operations (2) (217)
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Net cash outflows to operating activities (3,522) (41,601)
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Investing activities
Purchases of intangible assets (2,363) (2,432)
Purchases of property, plant and equipment - 194
Interest received on cash deposits 9 24
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Net cash outflows to investing activities (2,354) (2,214)
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Financing activities
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Net cash flows from financing activities - -
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Effect of exchange rate changes on cash and
cash equivalents (40) 400
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Change in cash and cash equivalents (5,916) (43,415)
Cash and cash equivalents, beginning of the
period 41,216 49,085
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Cash and cash equivalents, end of the period 35,300 5,670
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Outlook
The outlook to the end of the year 2013 is as follows:
Atrush Block
The Operator (TAQA) submitted to the KRG for approval a Field Development Plan ("FDP") on May 7, 2013 which is, in accordance with the terms of the Atrush Block PSC, within 180 days of the Declaration of Commercial Discovery made November 7, 2012.
The Atrush-3 appraisal well was spudded March 25, 2013 with a planned total depth of 1,700 meters. The well is located approximately 5km east of the Atrush-2 well and is an important step out from the previous two Atrush wells. In particular, the well is targeting the Oil Water Contact / Free Water Level in the reservoir section.
There are plans to drill Atrush-4 in 2013 and commence drilling Atrush-5. Technical discussions on the final location of these wells are currently underway.
The 3D seismic acquisition program which covered the entire Atrush block and adjoining Swara Tika discovery in the Sarsang Block was completed on August 11, 2012. Final processing of the complete 3D seismic survey is expected in the second quarter of 2013. Further processing is expected during 2013 with the specific purpose on enhancing the data for the development drilling program.
The Company is currently considering a number of financing initiatives.
New Ventures
As part of its normal business the Company continues to evaluate new opportunities in the MENA region.
About ShaMaran
ShaMaran Petroleum Corp. is a Kurdistan focused oil development and exploration vehicle with a 20.1% direct interest in the Atrush Block located in the region. This project is nearby and on trend with existing fields and recent discoveries.
Kurdistan lies within the northern extension of the Zagros Folded Belt. The area is highly underexplored and is currently undergoing a significant exploration and development campaign by over 40 mid to large size international oil companies.
ShaMaran Petroleum is a Canadian oil and gas company listed on the TSX Venture Exchange and the NASDAQ OMX First North Exchange (Stockholm) under the symbol "SNM".
The Company's condensed interim consolidated financial statements, notes to the financial statements and management's discussion and analysis have been filed on SEDAR (www.sedar.com) and are available on the Company's website (www.shamaranpetroleum.com).
Forward-Looking Statements
This press release contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as legal and political risk, civil unrest, general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and management's capacity to execute and implement its future plans. Actual results may differ materially from those projected by management. Further, any forward-looking information is made only as of a certain date and the Company undertakes no obligation to update any forward-looking information or statements to reflect events or circumstances after the date on which such statement is made or reflect the occurrence of unanticipated events, except as may be required by applicable securities laws. New factors emerge from time to time, and it is not possible for management of the Company to predict all of these factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information.
On behalf of the Board,
Pradeep Kabra, President and CEO
ShaMaran Petroleum's Certified Advisor on NASDAQ OMX First North is Pareto Ohman AB.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
ShaMaran Petroleum Corp.
Keith Hill
Chairman
(604) 806-3583
khill@namdo.com
ShaMaran Petroleum Corp.
Pradeep Kabra
President and CEO
0041 22 560 8605
pradeep.kabra@shamaranpetroleum.com
ShaMaran Petroleum Corp.
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)
sophias@namdo.com
www.shamaranpetroleum.com
