Shamaran Petroleum Ltd. · OSL:SNM
Shamaran Petroleum — Investor Presentation (September 2018)
21 slides from Shamaran Petroleum's investor presentation, September 2018
Slide 1: ShaMaran Petroleum Corp. Corporate Presentation September 2018
ShaMaran Petroleum Corp. Corporate Presentation September 2018 – A Lundin –Group ShaMaranShaMaran A Lundin Group Company Company
Slide 2: Highlights – ShaMaran after Marathon acquisition
Highlights – ShaMaran after Marathon acquisition Net 10,500 Large production asset in the Atrush oil field in Kurdistan production bopd capacity* Highly accretive acquisition of Marathon’s working interest in Atrush 36 Net 2P oil MMbbl reserves* Significant cash flow from production 104 Net 2C oil M
Slide 3: ShaMaran is a Kurdistan focused oil company
ShaMaran is a Kurdistan focused oil company Atrush partnership post acquisition ▪ ShaMaran is an E&P company active in the Kurdistan region with a post acquisition KRG TAQA 35.1% direct interest in the Atrush oil field 25.0% (Operator) • CAD 270m market capitalization 39.9% • Listed on TSX.V and NAS
Slide 4: ShaMaran to acquire additional 15% in Atrush
ShaMaran to acquire additional 15% in Atrush ▪ ShaMaran currently has a 20.1% interest in Atrush ▪ ShaMaran has agreed to acquire, with effect from Jan 1, 2018, 15% interest in Atrush from Marathon for USD 60m • Includes 15.4 MMbbl of 2P reserves valued at an NPV10 of USD 164m based on latest McDani
Slide 5: Kurdistan – a world class oil province
Kurdistan – a world class oil province Overview of Kurdistan oil operations ▪ Kurdistan’s oil industry is at a relatively early stage of development • First exploration PSCs were awarded in 2004 ▪ Significant reserves and resources ▪ Strong interest in the region ▪ Several international oil companie
Slide 6: ShaMaran is a Lundin Group company
ShaMaran is a Lundin Group company Combined value ~ USD 21 billion ShaMaran – A Lundin Group Company 6
Slide 7: Management and Board of Directors
Management and Board of Directors Keith C. Hill – Chairman and Director C. Ashley Heppenstall – Director Over 30 years experience in the oil industry including Over 25 years experience working with public international new venture management and senior companies associated with the Lundin family exp
Slide 8: Atrush is a large, world class oil field
Atrush is a large, world class oil field ▪ Atrush block was awarded in 2007 and Atrush oil field facts (gross)1 ShaMaran acquired interest in 2010 • Atrush field discovered 2011 MMbbl 1P/C 2P/C 3P/C • FDP approved October 2013 Oil reserves 37.4 102.7 165.9 • First production July 2017 Oil contingent
Slide 9: The Atrush field – Facilities and well locations
The Atrush field – Facilities and well locations CK-6, AT-3 well location Extended Phase 1 facilities heavy oil test AT-2 well location CK-7 and CK-10 well location AT-4, CK-5, CK-8 CK-9 water well location disposal well location ShaMaran – A Lundin Group Company 9
Slide 10: Kurdistan export facilities in place
Kurdistan export facilities in place ▪ Atrush crude exported via existing Kurdistan Export Pipeline to Fishkabur and on to Ceyhan in Turkey ▪ Pipeline capacity sufficient to accommodate increased production both from Atrush and other fields in Kurdistan ShaMaran – A Lundin Group Company 10
Slide 11: Production
Production Production facilities completed… ...with 14 months of production ▪ First production in July 2017 Back- produced Shut down to Frequent • Phase I facilities and pipeline project completed Facility shut down to salt plugs facilities tie-in CK-7, pipeline address production CK-10 outages cons
Slide 12: Ample room for production growth
Ample room for production growth Current capacity Debottlenecking plus Further phases 30,000 bopd potential for EPF’s ~100,000 to be defined ~50,000 bopd ~100,000 bopd ▪ Identifying low cost facility modifications to address bottlenecks ▪ Second production ▪ State of the art and fully facility poten
Slide 13: Strong focus on short term production growth
Strong focus on short term production growth ▪ Stress test 30,000 bopd facilities and identify debottlenecking opportunities to further increase capacity ▪ Install extended well test facilities in the east and bring AT-3 in production in Q4 2018 ▪ Install flexible flow line from AT-3 / CK-6 location
Slide 14: 2018 work program
2018 work program 2018 ▪ Objective Complete and test CK-7 well and bring • Increase production as quickly it to production as possible Drill CK-10 producer Wells well and bring to • Increase facilities capacity production • Gather information for next Drill CK-9 water phases of development disposal
Slide 15: Strong first half 2018 cash flow of USD 22m
Strong first half 2018 cash flow of USD 22m Cash from operating activities (after G&A and other cash expenses) USD 35.1m Repayment of KRG loan and exploration cost receivable USD 9.1m Capex USD (5.3m) Last payment for pipeline construction (recovered as loan) USD (0.4m) Receivable/payable and workin
Slide 16: Cost oil and KRG loans & receivables fuel cash flow
Cost oil and KRG loans & receivables fuel cash flow Pro-forma* KRG loans and cost oil as of June 30 2018 USDm *) including Marathon interest ShaMaran – A Lundin Group Company 16
Slide 17: Fully financed
Fully financed ▪ New USD 240m bond facility • Maturity July 2023 • 12% Coupon • Obligation to put 1 year of interest in a restricted cash fund by July 2019 ▪ Repaid USD 186m of old bonds • No senior or super senior bond outstanding ▪ USD 53m in restricted cash to finance the Marathon acquisition • N
Slide 18: Strategy
Strategy ▪ Focus on cash flow and building a robust cash balance • Strong 2018 cash flow: • Strong cash flow at current oil prices • Repayment of preferential historical costs in H1 2018 • Significant KRG loan repayments within the next two years ▪ Focus on near term production growth • Near term in
Slide 19: Corporate profile
Corporate profile ▪ Share capital ▪ Major shareholders • Shares issued and outstanding 2,158,631,534 • Lundin family trusts 22.4% ▪ Market capitalization • VR Capital 3.7% • CAD 270 million (@ 31 August 2018) • Directors/Management 0.3% ▪ Net debt* ▪ Trading information • USD 104 million (@ 31 Augus
Slide 20: ShaMaran after Marathon acquisition
ShaMaran after Marathon acquisition Net 10,500 Large production asset in the Atrush oil field in Kurdistan production bopd capacity* Highly accretive acquisition of Marathon’s working interest in Atrush 36 Net 2P oil MMbbl reserves* Significant cash flow from production 104 Net 2C oil MMbbl resource
Slide 21: Cautionary statements
Cautionary statements This document 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
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