ShaMaran Petroleum Ltd. · OSL:SNM
ShaMaran Petroleum — Shareholder Meeting (June 2012)
25 slides from ShaMaran Petroleum's shareholder meeting presentation, Jun 26, 2012
Slide 1: Annual General Meeting 26th June 2012
Annual General Meeting 26th June 2012
Slide 2: Cautionary Statements
Cautionary Statements 2 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 ppolitical risk, civil unrest, g g general economic, mark
Slide 3: A Lundin Group Company
A Lundin Group Company ShaMaran Petroleum BlackPear! R Africa Oil ackPear! Resources A SHAMARAN Etrion Lundin Petroleum petroleum fant Lundin] t ; t : LUNDIN GROUP Atacama Lucara Diamond Minerals Corp. Bee Lundin Mining IRR. Lucara Diamond Corp. lundin mining Saresis ones v Vv Vv Denison Mines NGEx
Slide 4: ShaMaran Strategy
ShaMaran Strategy 4 » Discover and develop major oil fields in Kurdistan » Prioritize development of Atrush to become a significant producer » Technical T h i l and d fifinancial i l resources tto b be ffocused d on th the At Atrush h discovery. Atrush-2 (appraisal well) spudded in May 2012 » Taza-1
Slide 5: Huge Reserves Spur High Activity Level
Huge Reserves Spur High Activity Level 5 » Over 54% of the World’s World s oil reserves are in the Middle East. * Kurdistan » Kurdistan region projected to have up to 45 billion barrels of oil reserves and 200 TCF of gas. ** » Kurdistan the only region in the Middle East which is open to industry wi
Slide 6: Kurdistan Becoming a Major Oil Producer
Kurdistan Becoming a Major Oil Producer 6 DNO-operated Tawke Field »6 fields currently producing: » Taq Taq, Tawke, Kormor, Bardarash, Sarqala and Khurmala Dome (Kirkuk field) » Gross capacity of approx. 175,000 bopd production » The KRG expects to start exporting its oil along a new pipeline to the
Slide 7: Local Sales Provide a Pre-Export Solution
Pre-Export Solution Local Sales Provide a Pre- 7 » Local sales is currently available for producers in Kurdistan since the export of oil is not resolved » Local sales p presently y at +/- USD 50 p per barrel » Refining capacity ramping up* » Currently y estimated at 160,000 , bopd p » Expected to in
Slide 8: KRG Plans for Export
KRG Plans for Export 8 Recent quotes (KRG website): Dr. Ashti Hawrami, Minister for Natural Resources, KRG: Turkey means for us the access “Turkey route to monetise oil & gas and create benefits for the Iraqi people. ” Taner Yildiz, Minister of Energy & Natural Resources, Turkey: “With With the KRG
Slide 9: Asset Summary
Asset Summary 9 » Atrush: A world class oil discovery » 513 MMBOE mean certified contingent resource under appraisal » Early E l production d ti ttargeted t d iin Q1 2013 » Taza: High-impact exploration » 324 MMBOE mean certified tifi d prospective resource » Well spudding in June 2012 ShaMaran Gros
Slide 10: Atrush Project – A World Class Oil Discovery
Atrush Project – A World Class Oil Discovery 10 » Jurassic oil discovery under appraisal » Discovery well drilled in 2010/2011 – results announced April 2011 » Atrush-1 tested over 6,000 bopd (from three Jurassic horizons, equipment q p constrained) » Potential for flow rates >10,000 bopd* per welll
Slide 11: Atrush Jurassic Oil Discovery – Resource Base
Atrush Jurassic Oil Discovery – Resource Base 11 Gross Contingent Low Best Mean High Resources* (Barsarin, (1C) (2C) (3C) Sargelu, Alan-Mus, Adaiyah) Total (MMBOE) 275 465 513 813 Gross Prospective Low Best Mean High Resources* (Cretaceous & Jurassic Butmah) Total (MMBOE) 74 134 146 235 * YE 2011 Mc
Slide 12: Atrush Project: Forward Plans (Near Term)
Atrush Project: Forward Plans (Near Term) 12 » 3D seismic acquisition underway. To be completed in July 2012 » Atrush-2 appraisal well spudded in May 2012 » Atrush-1 Atrush 1 to be recompleted and Atrush-2 to be tied in to Early Well Testing Facility » Pursuing an aggressive appraisal programme DQE
Slide 13: Atrush-2 Appraisal Well
Atrush--2 Appraisal Well Atrush 13 » Spudded 23rd May 2012 » Planned Total Depth 1750m » 3.5km east of AT-1 discovery well » 67 days (excluding testing) » Appraisal A i l off JJurassic i di discovery reservoirs » Total depth (TD) formation: Lower J i B Jurassic t h Butmah » Complete and connect to E
Slide 14: Atrush – Early Well Testing Facility
Atrush – Early Well Testing Facility 14 » Currently tendering for Early Well Test Facilities (EWTF) » EWTF capacity of up to 30,000 bopd ( modular design) » Initial tie-in of two wells AT-1 & AT-2. Additi Additional l wells ll titied d iin tto th the EWTF as soon as drilled and completed » Initial p
Slide 15: Taza Prospect (20%) – Ongoing Exploration
Taza Prospect (20%) – Ongoing Exploration 15 » Taza block operated by Oil Search » Option agreement converted into a PSC in July 2011 » Significant 4-way dip-closed prospect on trend to giant Jambur field and Sarqala discovery (Western Zagros) » Surface oil seeps and proven oil trendology increases
Slide 16: Taza – Ontrend To & Between Major Discoveries
Taza – Ontrend To & Between Major Discoveries 16 KIRKUK FIELD JAMBUR FIELD SARQALA
Slide 17: Taza Prospect
Taza Prospect 17 » Five main regional reservoir targets: Upper Fars clastics, Jeribe, Euphrates/Serikagni, Kirkuk Group, Group and Jaddala » Regional trends (Jambur-Sarqala) suggest prospect should be oil bearing in the Tertiary » More than 90% of the mapped resources in the Tertiary section » 2011
Slide 18: Taza Volumetrics
Taza Volumetrics 18 » McDaniel M D i l&AAssociates i t ffor SNM (YE 2011) Resources Low Median Mean High Property Gross – MMBOE Contingent Resources 0 0 0 0 Prospective Resources (unrisked) 116.5 260.1 324.1 603.4 » ShaMaran holds 20% participating interest Source: 31stt December S D b 2011 Detailed
Slide 19: Taza-1 Exploration Well
Taza--1 Exploration Well Taza 19 » On schedule for June 2012 spud. Romfor 101 rig on location end May » Planned Total Depth 3,250m » 102 days (excluding testing) » Targeting regionally proven Tertiary reservoirs (Miocene Jeribe & Euphrates, Oligocene Kirkuk Group) » TD formation: Eocene Jaddala
Slide 20: Summary of Corporate Resources
Summary of Corporate Resources 20 As p per Januaryy 2012: Company Gross Contingent Low Best Mean High Resources* (Atrush) (1C) (2C) (3C) Total (MMBOE) 73.6 124.8 137.4 217.9 Company Unrisked Gross Low Best Mean High Prospective Resources* (Atrush + Taza) Total ((MMBOE)) 43.0 87.9 104.1 183.7 * YE 20
Slide 21: Building Value
Building Value 21 Valuations are difficult due to lack of p pure or p publicised transactions. Internal estimated value of Contingent Resources / 2P reserves in the range of $3-$8 per barrel.
Slide 22: Forward Plan
Forward Plan 22 All plans subject to JV partner and Government approvals Forward plan on Taza is dependent on Taza-1 well results
Slide 23: Executive Summary
Executive Summary 23 » A World Class Oil Discovery undergoing appraisal with plans in place to start production in early 2013 » Atrush-2 appraisal well currently drilling » High Impact Exploration play at Taza with first exploration well due to t t drilling start d illi iin JJune 2012 » KRG announce
Slide 24: Lundin Group Track Record for Value Creation
Lundin Group Track Record for Value Creation 24 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/share
Slide 25: Profile & Contacts
Profile & Contacts 25 » Symbol TSX V: SNM www.shamaranpetroleum.com » Share Capital Issued and outstanding 810,983,860 shares Fully diluted 813,632,194 shares » Directors and Management » Keith Hill, Chairman of the Board » J. Cameron Bailey, Director » Pradeep Kabra, Director, President and CEO » A