Shamaran Petroleum Ltd. · OSL:SNM
Shamaran Petroleum — Investor Presentation (December 2022)
19 slides from Shamaran Petroleum's investor presentation, December 2022
Slide 1: ShaMaran Corporate Presentation December 2022
SHAMARAN Corporate Presentation Petroleum Corp. December 2022 TSX V: SNM; NASDAQ OMX: SNM www.shamaranpetroleum.com
Slide 2: ShaMaran At A Glance
ShaMaran At A Glance TSX V: SNM; NASDAQ OMX: SNM ShaMaran – a Lundin group E&P company active in KRI Location of Operating Assets • Kurdistan’s oil industry well established • Significant reserves and resources • Export route to Mediterranean via Turkish port of Ceyhan • ShaMaran contributed over $6
Slide 3: Corporate Highlights 2022 YTD
Corporate Highlights 2022 YTD M&A Acquisition of Sarsang from TOTALEnergies closed $100MM Over double EBITAX in 2022 vs. 2021 +50% Increase in ShaMaran Net Q3.2022 Production vs Q3.2021 +115MM* Reached over 115MM bbl cumulative from Atrush + Sarsang 102% Atrush reserve-replacement ratio for 2021 [2]
Slide 4: ShaMaran Petroleum – Value Roadmap
ShaMaran Petroleum – Value Roadmap 2022 2025 Transformation through M&A ~18K net boepd YE 2022 50k+ Target production goal • Led last 2 KRI transactions Boepd • Aiming to grow significantly over time Focus on Stakeholder returns • Debt reduction Annual FCF • Capital return $100MM+ generation* Carbon
Slide 5: KRG Repayments Atrush + Sarsang
KRG Repayments Atrush* + Sarsang** • Resumption of payments from KRG since March 2020 • KRG Receivable for Nov 2019 – Feb 2020 balance recovered by June 28, 2022 35 30 25 20 $MM Sarsang Acquisition Date 15 10 5 0 Invoiced Atrush + Sarsang Received Atrush+ Sarsang (*) Amounts in this table reflect Sh
Slide 6: Atrush – Asset Overview
Atrush – Asset Overview • Production – Averaged 37k bopd in Q1-Q3 2022 from 11 producing wells – Two dedicated water disposal wells • Drilling – CK-16 well drilled from Pad G proving hydrocarbons in Triassic – CK-18 drilled from Pad G as first horizontal development well – P-119 well currently being
Slide 7: Atrush – Value Creation Priorities
Atrush – Value Creation Priorities 2022+ 2021 2019-2020 Deliver Full Asset Value Implement “integrated oil Position to column development plan” Deliver Value Return to normal operations Continue to drill and following COVID impact complete development wells Debottleneck & Continue to achieve 2017-20
Slide 8: Sarsang – Asset Overview
Sarsang – Asset Overview • Production – Averaged 29.8k bopd in Q1-Q3 2022 from 11 wells – Cumulative production exceeded 50MM bbls in September 2022 • Drilling – Five production wells drilled from Pad B drilled and completed in 2021 – Additional production well spudded at Pad B in August 2022 • Faci
Slide 9: Sarsang – Value Creation Priorities
Sarsang – Value Creation Priorities Long-term (2027+) Develop East Swara Tika and evaluate additional prospective Triassic areas on block Mid-term (2023-2026) Maintain Swara Tika production plateau by Develop Jurassic reservoir if keeping all 3 facilities full, improve commercially attractive operat
Slide 10: 2022 Corporate Metrics
2022 Corporate Metrics* Guidance Atrush + Sarsang • 2022 lifting costs estimated to range from US$4.80 per barrel to US$5.80 per barrel • 2022 Net Capital Expenditures** at US $63 million • Combined Gross average daily production Atrush and Sarsang fields Q4 2022 expected range, 77,000 bopd to 88,00
Slide 11: ShaMaran Rights Offering & Bond Update
ShaMaran Rights Offering & Bond Update Rights Offering • Successfully completed in May 2022 with oversubscription by Company’s shareholders • Gross proceeds (including FX gains) of US$30.15MM received Bond Update • Company’s 2023 Bonds merged into one single $300 million issue 2025 Bond listed in No
Slide 12: Strong growth in EBITDAX and Cashflow
Strong growth in EBITDAX and Cashflow USD MM USD MM EBITDAX* Cash Flow from Operations* 220 211 195 187 175 170 155 152 133 135 115 120 100 93 95 75 70 55 48 41 35 20 15 -5 Q1-Q3 2021A Q1-Q3 2022A Q1-Q3 2023F Q1-Q3 2021A Q1-Q3 2022A Q1-Q3 2023F -30 Profitability and cash generation remains very stro
Slide 13: ESG
ESG www.shamaranpetroleum.com/company/esg/ Environmental Focus • Atrush first asset in KRG to have Produced Water Disposal via re-injection, online since 2019 • Gas Solutions to eliminate flaring and emissions via gas sweetening strategies • Facilities heat capture project for diesel displacement un
Slide 14: ESG - Emission Reduction Strategy
ESG - Emission Reduction Strategy Carbon footprint reduction key component of ShaMaran’s ESG strategy • Multi pronged strategic process designed to reduce Scope 1 + Scope 2 emissions • Aiming to develop pragmatic and clear path to Net Zero which will set Company apart from most similar scale oil & g
Slide 15: ShaMaran – Positioned to Deliver Long Term Value
ShaMaran –Positioned to Deliver Long Term Value Production Growth - Targeting 50k+ bopd Net Production by 2025 • Organic growth and further development of own assets TSX V: SNM • M&A driven growth in our region, both inside and outside Kurdistan NASDAQ OMX: SNM Free Cash Generation - $100 million pe
Slide 16: Cautionary Statements
Cautionary Statements Cautionary Statement Regarding Forward-Looking Information Certain statements in this presentation are “forward-looking information” and “forward-looking statements” (within the meaning of applicable securities legislation). Forward-looking information is information concerning
Slide 17: Cautionary Statements
Cautionary Statements The Company does not undertake to update or re-issue the forward-looking statements and information that may be contained herein, whether due to new information, future events or otherwise. Where such forward-looking statements or forward-looking information is updated or withd
Slide 18: Cautionary Statements
Cautionary Statements ▪ future foreign currency exchange rates ▪ future market interest rates ▪ future expenditures and future allowances relating to environmental matters ▪ dates by which certain areas will be developed or will come on stream or reach expected operating capacity ▪ changes in any of
Slide 19: Cautionary Statements
Cautionary Statements The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these factors are interdependent, and management’s future course of action would depend on our assessment of all information at that time. Although
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