ShaMaran Petroleum Ltd. · OSL:SNM
ShaMaran Petroleum — Investor Presentation (June 2011)
24 slides from ShaMaran Petroleum's investor presentation, June 2011
Slide 1: Exploration & Development in the Last Frontier: Kurdistan
Investor Presentation ‐ June 2011 Exploration & Development in the Last Frontier: KURDISTAN
Slide 2: A Lundin Group Company
A Lundin Group Company ShaMaran Petroleum BlackPear! R Africa Oil ackrearl Resources A SHAMARAN Etrion Lundin Petroleum petroleum AfricaQil f )—Lundin_| t A t t LUNDIN GROUP Ypatok Atacama Lucara Diamond ener Minerals Corp. HY. a Lundin Mining Ip \% Lucara Diamond Corp. lundin mining siateeis cous v
Slide 3: In the Heart of the Middle East: Kurdistan
In the Heart of the Middle East: Kurdistan 3 » Over 55% of the World’s oil reserves are in the Middle East * » Kurdistan region is projected to have 70 billion barrels of oil Iraq reserves and 200 TCM of gas** 8.6% 8 6% » Kurdistan is the only region in the (Service Contracts) Iran Middle East which
Slide 4: Land of the Giants
Land of the Giants 4 Exploring, Appraising & Developing Oil and Gas Opportunities in one of the World’s most prolific f petroleum provinces 3 of the World’s 10 largest fields are in Iraq » Kirkuk » Majnoon » Rumaila
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 Legend Oil Fi Field ld Gas Field Prospect
Slide 6: Kurdistan Industry Interest Imminent
Kurdistan Industry Interest Imminent 6 » World’s largest oil companies currently in the south are not working in Kurdistan yet » New entrants will have to pay a huge premium to get into Kurdistan as most of the prospective acreage has already been licensed. Oklahoma Land Rush, April 1889 Entry costs
Slide 7: Asset Summary
Asset Summary 7 ShaMaran has one of the best acreage positions in Kurdistan: » Pulkhana oilfield appraisal / development project » Atrush world class oil discovery » Two high potential exploration blocks ShaMaran Gross Block Working Partners Operator Acres Status Map showing current and near future
Slide 8: The Opportunity
The Opportunity 8 • Previous discovery on block • Major new discovery • Significant contingent resources • Huge upside +huge upside (+500 MMBL PIIP) • Plans for an aggressive appraisal • Appraisal pp and workover drilling g programme including an EPS • Early production system (EPS) • Capacity to be
Slide 9: Atrush Block
Atrush Block 9 Swara Tika Reported Significant Discovery » Between the significant Gulf Keystone Shaikan discovery and the Hillwood Swara Tika-1 well (testing) » Atrush gross oil column of over 700 meters ATRUSH Major Discovery » 120 meters net matrix pay in the Shaikan 2-7 BBO Jurassic Additional 1
Slide 10: Atrush-1 Jurassic Oil Discovery
Atrush--1 Jurassic Oil Discovery Atrush 10 Atrush discovery Aggressive gg appraisal pp plans p : » Shoot 3D seismic and drill appraisal well & to confirm reserves » Considering Early Production System and put field on long-term test » Generate early cash flow » Post-drill Reserves / Resource reports
Slide 11: Pulkhana Oilfield
Pulkhana Oilfield 11 » Legacy discovery (tested 2,950 bopd from two horizons in PLK5 in 1956). Awarded as a field appraisal / development project. project On trend to major Kirkuk 26 BBO fields in the area » One of the four PSC’s awarded prior to 2007 hydrocarbon h d b law l Jambur 1.2 BBO » Signifi
Slide 12: Pulkhana Oilfield
Pulkhana Oilfield 12 NW Pulkhana Lead » Currently drilling first appraisal well to confirm proven oil and potential upside in Jeribe and Lower Jaddala Pulkhana Field » Plan to have three wells (two new + Pulkhana-9 one legacy well) on Early Production System by early 2012 Pulkhana-8 Pulkhana-5 Pulkh
Slide 13: Arbat Prospect & Leads Summary
Arbat Prospect & Leads Summary 13 » High potential exploration block (over 930 k 2 with km ith an active ti petroleum t l system) t ) » Two prospects (Potential PIIP 600 MMB): E » Arbat-A: Main prospect (Arbat-1) » Arbat-B: Shallow Cretaceous prospect (success could prove the shallow Cretaceous play
Slide 14: Arbat Structural Leads – Large Surface Anticlines
Arbat Structural Leads – Large Surface Anticlines 14 » 3 large g 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
Slide 15: Block K42
Block K42 15 » Acquired, processed & interpreted 232 line-kms line kms of 2D seismic (vs. commitment of 200 line-kms) A’ » One significant drillable 4-way dip-closed prospect identified » Application made to convert the Option Agreement to a PSC A K42 A Prospect » 4-way dip closure of 80+ km2 » Bill
Slide 16: Aggressive Forward Plan to Move Resources to Reserves
Aggressive Forward Plan to Move Resources to Reserves 16 Current Schedule Subject to partner and government approval
Slide 17: Key Issues / Risks
Key Issues / Risks 17 Politics: » Moving in the right direction » Baghdad & Erbil working towards resolutions of outstanding issues » Cost recovery payments on exports from Kurdistan a major milestone G vs. Oil: Gas Oil » Two assets (Pulkhana & Atrush) are oil only » Increasing evidence that the two
Slide 18: Building Value
Building Value 18 U i k d hi Unrisked high h estimate ti t – 770 MMBOE Upside K42 and Arbat Upside Atrush and Pulkhana Mean Prospective Resources (4 Assets) Mean Contingent Resources 3P (PLK+Atrush) Arbat 2D Seismic Acquisition 2P Reserves (PLK+Atrush) Valuations are difficult due to lack of pure tr
Slide 19: The Lundin Group Track Record for Shareholder Return
The Lundin Group Track Record for Shareholder Return 19 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 (20
Slide 20: Health, Safety & Environment (HSE)
Health Safety & Environment (HSE) Health, 20 » Good working relationship with local authorities,, communities in the area » Excellent Corporate HSE record - No Loss Time Incidents (LTIs) » No security incidents in the area of operations » Targeted CSR projects have created goodwill in the area
Slide 21: Key Points
Key Points 21 Drilling in Pulkhana, April 2011 » Large acreage position in one of most prospective areas in the world Asset Testing the Mus Fm (Atrush‐1), Accumulation March 2011 Estimated » Cash >$77 million Area (km2) Oil Column Height (m) » Size potential of SNM’s projects similar to recent disco
Slide 22: ShaMaran Petroleum: Listing in Sweden
ShaMaran Petroleum: Listing in Sweden 22 » Dual listing on North Lights Stockholm StockS Exchange in progress » Trading likely to begin by end of June » Ohman: Adviser and Market Maker www.shamaranpetroleum.com
Slide 23: Profile & Contacts
Profile & Contacts 23 » Symbol TSX V: SNM www.shamaranpetroleum.com » Share Capital p Issued and outstanding 680,483,860 shares Fully diluted 683,692,194 shares » Directors and Management » Keith Hill, Chairman of the Board » Pradeep Kabra, Director, President and CEO » J. Cameron Bailey, Director »
Slide 24: Cautionary Statements
Cautionary Statements 24 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 g and p political risk, civil unrest, g general economic, ma
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