ShaMaran Petroleum Ltd. · OSL:SNM
ShaMaran Petroleum — Investor Presentation (October 2011)
26 slides from ShaMaran Petroleum's investor presentation, October 2011
Slide 1: Exploration & Development in Kurdistan
Corporate Presentation – October 2011 Exploration & Development in Kurdistan
Slide 2: A Lundin Group Company
SHAMARAN petroleum corp ) A Lundin Group Company ¥S ShaMaran Petroleum Africa Oil BASE) RRR A SHAMARAN Etrion Lundin Petroleum petroleum A, [Lundin_| ricaOil . 4” f t t LUNDIN GROUP Atacama Lucara Diamond Minerals Corp. Be tS Lundin Mining TREX. Lucara Diamond Corp. lundin mining sinensitcnae Vv Vv
Slide 3: In the Heart of the Middle East: Kurdistan
In the Heart of the Middle East: Kurdistan 3 Kurdistan » Over 55% of the World’s oil reserves are in the Middle East * » Kurdistan region is projected to have 70 billion barrels of oil reserves and 200 TCM of gas** » Kurdistan is the only region in the Middle East which is open to industry with good
Slide 4: ShaMaran in the Land of the Giants
ShaMaran in the Land of the Giants 4 Pursuing Exploration, Appraisal & Development Opportunities..... .....in one of the World’s most prolific petroleum provinces
Slide 5: Kurdistan – Virtually Unexplored
Kurdistan – Virtually Unexplored 5 » Less than 10 exploration wells drilled in Kurdistan prior to 2006 due to politics and predominance of Kirkuk » Prior drilling based on surface anticlines and seeps - no seismic KURDISTAN » 25 wells drilled in the last 5 years with over 70% success rate for findin
Slide 6: Additional Industry Interest Imminent
Additional Industry Interest Imminent 6 » Most of the prospective acreage has been taken up Kurdistan » Largest oil companies working in the south are not working in Kurdistan » Passing of the Oil & Gas Law would spark a significant additional interest in Kurdistan » New entrants will have to pay a
Slide 7: Asset Summary
Asset Summary 7 ShaMaran has one of the best acreage positions in Kurdistan: » Pulkhana oilfield appraisal / development » Atrush world class oil discovery » Two high potential exploration blocks ShaMaran Gross Block Working Partners Operator Acres Status Interest Map showing current and near future
Slide 8: The Opportunity
The Opportunity 8 » Previous discovery on block » Major new discovery with upside » Significant contingent resources + upside »Plans for an aggressive » Appraisal and workover drilling appraisal / programme including an EPS » Early production system (EPS) »3D seismic in progress being implemented »
Slide 9: Atrush Block
Atrush Block 9 » Between the significant Gulf Keystone Shaikan and the Hillwood Swara Tika-1 discoveries » Gross oil column of over 700 meters. 120 meters net matrix in the Jurassic with additional 140 meters potential net pay in Jurassic Butmah and Cretaceous (logged with good oil shows) » Atrush-1
Slide 10: Atrush-1 Jurassic Oil Discovery
Atrush--1 Jurassic Oil Discovery Atrush 10 Atrush discovery Gross Prospective Resources* Low Best High (MMBO) (1C) (2C) (3C) Gross Volumetrics* (MMBO) Low Best High Cretaceous STOIIP 15 208 451 (1C) (2C) (3C) Jurassic STOIIP 125 220 416 Discovered Jurassic STOIIP 1075 1423 1891 Footwall STOIIP 9 59
Slide 11: Aggressive Atrush Appraisal Programme
Aggressive Atrush Appraisal Programme 11 » Appraisal plan approved by KRG » 3D seismic (over 275 sq. kms) to be completed year end » Appraisal drilling to commence in Bijeel Discovery 2012 » Planning Early Production System for long-term test ATRUSH DISCOVERY Swara Tika Discovery » Generate early ca
Slide 12: Pulkhana Oilfield
Pulkhana Oilfield 12 » Legacy discovery on trend to major fields in the area (tested 2,950 bopd from two horizons in Pulkhana-5 in 1956) » Awarded as a field appraisal / development Kirkuk 26 BBO project. One of the four PSCs awarded prior to permanent Iraq constitution Jambur 1.2 BBO » Significant
Slide 13: Pulkhana Drilling
Pulkhana Drilling 13 » Completed drilling of first appraisal well Pulkhana-9 NW Pulkhana Lead » 6 DSTs conducted. Recovered oil (ranging 28-34°API) . Mechanical issues prevented representative flows. Results currently undergoing evaluation Pulkhana Field » Planning for 3 wells (2 new + 1 legacy well
Slide 14: Pulkhana-9 Finds Oil in Two New Reservoirs
Pulkhana--9 Finds Oil in Two New Reservoirs Pulkhana 14 » Predrill expectation to appraisal two proven reservoirs (Euphrates & Shiranish) and evaluate potential in Jeribe & Jaddala » Post-test confirmation of pre-existing proven reservoirs Euphrates (31-34°API oil, 120m potential gross column, Oil D
Slide 15: Pulkhana-8 Re-Entry
Pulkhana--8 Re Pulkhana Re--Entry 15 » 2006 legacy well (drilled as PPP-1) » Successful rigless intervention conducted to secure well prior to rig operations » Workover rig on location. Re-entry operations in progress (original tubing recovered) » Plan to workover well, retest and drill additional n
Slide 16: Arbat Prospect & Leads
Arbat Prospect & Leads 16 » High potential exploration block (over 930 km2 with active petroleum system) » Two prospects (Potential PIIP 600 MMB*): » Arbat-A: Main prospect (Arbat-1) – regional Jurassic & Triassic reservoirs E » Arbat-B: Shallow Cretaceous prospect (success could prove the shallow C
Slide 17: Arbat Structural Leads – Large Surface Anticlines
Arbat Structural Leads – Large Surface Anticlines 17 3 large surface anticlines: » Lead E has closure in dip direction – Strike direction to be determined by new seismic » Lead F has closure in strike direction – Dip direction to be determined by new seismic » Possible closure in front of Lead E (si
Slide 18: Taza (formerly Block K42)
Taza (formerly Block K42) 18 » Option agreement converted to PSC A’ » Significant drillable 4-way dip-closed prospect identified K42 » Billion++ PIIP barrel potential*. On trend to Jambur (1.2 BBO) and Sarqala (WZR) A » Presence of surface oil seep and proven oil on trend increases chance for oil ra
Slide 19: Converting Resources to Reserves
Converting Resources to Reserves 19 Aggressive Schedule: Subject to partner and Government approval
Slide 20: Key Issues / Risks
Key Issues / Risks 20 Politics: » Moving in the right direction. Petroleum Law in Parliament » Baghdad & Erbil working towards resolutions of issues » Cost recovery payments on exports from Kurdistan a major milestone Gas vs. Oil: » Two assets (Pulkhana & Atrush) are oil only » Increasing evidence t
Slide 21: Building Value
Building Value 21 Valuations are difficult due to lack of pure or publicised transactions Internal estimated value of Contingent Resources / 2P reserves in the range of $4-$8 per barrel *McDaniel & Associates / RPS Energy
Slide 22: Lundin Group Track Record for Shareholder Return
Lundin Group Track Record for Shareholder Return 22 Company 2002 Present Notes Tanganyika $0.55/share $31.50/share Sold to Sinopec 2008 $13.5 million MC $1.9 billion MC Valkyries $0.45/share $16.00/share Sold to Lundin $4 million MC $750 million MC Petroleum 2006 Red Back $1.35/share (2000) $30.50/s
Slide 23: Health, Safety & Environment (HSE)
Health, Safety & Environment (HSE) 23 » Good working relationship with local authorities, communities in the area » Excellent Corporate HSE record » No security incidents in the area of operations » Targeted CSR projects have created goodwill in the area
Slide 24: Key Points
Key Points 24 » One of the best acreage positions in one of most prospective areas in the world » Size potential of SNM’s projects similar to recent discoveries in Kurdistan » Cash >$ 30 million » Mean unrisked PIIP (gross) in excess of 3.3 billion barrels in four projects* » Two discoveries and two
Slide 25: Profile & Contacts
Profile & Contacts 25 » Symbol TSX V: SNM www.shamaranpetroleum.com » Share Capital Issued and outstanding 680,483,860 shares Fully diluted 683,717,194 shares » Directors and Management » Keith Hill, Chairman of the Board » Pradeep Kabra, Director, President and CEO » J. Cameron Bailey, Director » B
Slide 26: Cautionary Statements
Cautionary Statements 26 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 a
ShaMaran Petroleum — Investor Presentation (October 2011) on 6ix