Shamaran Petroleum Ltd. · OSL:SNM
Shamaran Petroleum — Investor Presentation (September 2019)
21 slides from Shamaran Petroleum's investor presentation, September 2019
Slide 1: ShaMaran Petroleum Corp. – Focusing on Growth
ShaMaran Petroleum Corp. Focusing on Growth September 2019 ShaMaranShaMaran – A Lundin –Group A Lundin Group Company Company
Slide 2: ShaMaran at Glance
ShaMaran at Glance 12,400- Net exit 2019 Acquisition of Marathon’s interest in Atrush field in Kurdistan 13,800 production completed- Highly value accretive transaction bopd capacity * Atrush Asset provides large production base with significant growth Net 1/1/2019 potential 29.3 MMbbl 2P oil reserv
Slide 3: ShaMaran in Kurdistan
ShaMaran in Kurdistan Asset location ▪ ShaMaran is an E&P company active in the Kurdistan Region of Iraq. Atrush Kurdistan ▪ Kurdistan’s oil industry at a relatively early stage of development • Significant reserves and resources • Largely stable political landscape • Well established export route t
Slide 4: Atrush - a World Class Oil Field
Atrush - a World Class Oil Field ▪ Atrush block awarded in 2007 and Atrush Resources (gross)* ShaMaran entered in 2010 • Atrush field discovered 2011 MMbbl 1P/C 2P/C 3P/C • FDP approved October 2013 Oil reserves 44.9 106.0 160.8 • First production July 2017 Oil contingent 158 268 407 ▪ Reservoir Oil
Slide 5: ShaMaran Completes Accretive Atrush Acquisition
ShaMaran Completes Accretive Atrush Acquisition ▪ ShaMaran acquisition increases interest in Atrush by over a third Atrush Aquisition Key Metrics • Acquired all of Marathon’s 15% interest with 35.0 400.0 simultaneous sale of 7.5% to TAQA Working Interest (%) Net Reserves (MMbbl) • Interest increased
Slide 6: Atrush – Focus on Production Growth
Atrush – Focus on Production Growth 2017-2018 2019 2020+ Startup Maximize Production and Development of Capacity Mature Resources Matured Resources ~100,000 30,000 bopd 45,000 – 50,000 bopd 2019 80,000 bopd + exit rate ▪ State of the Art and fully ▪ Maximizing existing permanent ▪ Install second pro
Slide 7: Delivering Production Growth in 2019
Delivering Production Growth in 2019 50,000 45,000 40,000 35,000 34,603 Atrush Quarterly Sales Average stb/d 30,000 28,233 25,000 26,284 20,000 15,000 10,000 5,000 0 2019 Q1 2019 Q2 2019 Q3 2019 Q4 Atrush Sales stb/d ShaMaran Lower Guidance ShaMaran Upper Guidance ▪ Over 1,000,000stb (gross) sales p
Slide 8: Atrush 12 Month Production
Atrush 12 Month Production Stripper 7day Export Reboiler CK-10 ESP Flushing and CK-8 ESP CK-8 ESP Column Pipeline CK-12 Online Failure CK-8 ESP Replacement Online Flushing Shutdown 40000 Failure 35000 30000 25000 Bopd 20000 15000 10000 5000 0 Sep-18 Feb-19 Sep-19 Jan-19 Jul-19 Aug-18 Aug-19 Oct-18 M
Slide 9: Delivering Well Capacity in 2019
Delivering Well Capacity in 2019 ▪ 2019 Wells Delivered • CK-6 recompleted 16th Feb. Well online 1st June with a capacity of 4,500 bopd • CK-11 delivered on production on 10th May with a capacity of 8,500 bopd* • CK-12 delivered on production on 10th August with a capacity of 2,000 bopd ** • CK-13 d
Slide 10: Delivering Processing Capacity in 2019
Delivering Processing Capacity in 2019 ▪ Maximizing permanent facility processing capacity through debottlenecking campaigns: • First step delivered May 2019 • Next step to 40,000 bopd planned Q4 2019 ▪ Utilise Temporary Facilities to provide additional processing capacity: • Heavy Oil Extended Well
Slide 11: Delivering a Path Forward for Heavy Oil
Delivering a Path Forward for Heavy Oil ▪ Extended Well Testing • Temporary facilities (HOEWT) installed at Pad C Q1 2019 • AT-3 Heavy Oil Testing commenced 14th April 2019 • Testing concluded on 26th August. • Test results inconclusive ▪ Heavy Oil Forward Plan: • Reservoir Modelling work ongoing an
Slide 12: 2019 Work Program
2019 Work Program ▪ 2019 capex 2019 • ~USD 38MM net to Drill and Complete CK- ShaMaran 11 (27.6% working Drill and Complete Pad interest) Wells E Well Drill and Complete Pad C Well Planned Drill and Complete Pad Workover CK-6 G Well CK-9 Water Re-injection online Permanent Facilities Procure PF1 Des
Slide 13: Atrush Field – Facilities and Well Locations
Atrush Field – Facilities and Well Locations PAD A: PAD B: PAD E: AT-4, CK-5 and Phase 1 facilities and CK-7, CK-10, CK-12 CK-8 well location AT-2 well location and EPF Location PAD G: North PAD C: CK-9, CK-11 and CK-6, AT-3, CK-13 CK-15 location and HOEWT Location ShaMaran – A Lundin Group Company
Slide 14: Strong operational cash flow
Strong operational cash flow ¹ This figure is net of a further $8.75 million of cash spent on acquisition related costs spent during Q2 on the acquisition of an additional 7.5% interest in Atrush. The $8.75 million has been included in the line item “Operating cash, net of G&A and other cash expense
Slide 15: Cost oil and KRG loans & receivables
Cost oil and KRG loans & receivables Pro-forma* KRG loans, receivables and cost oil as of June 30, 2019 USDm (*) amounts in this table reflect a 27.6% effective interest in Atrush as at June 30, 2019, and are inclusive of amounts relating to the 7.5% interest attributable to ShaMaran’s share of the
Slide 16: Strategy
Strategy ▪ Focus on production growth • Target 45,000 – 50,000 bopd as 2019 exit rate through: • Debottlenecking current permanent facilities • Supplementing permanent processing capacity through use of temporary facilities • Drilling and completing four development wells • Lay foundations for next
Slide 17: Cautionary statements
Cautionary statements This document contains statements about expected or anticipated future events and financial results that are forward-looking nature and, as a result, are subject to certain risks and uncertainties, such as legal and political risk, civil unrest, general economic, market and bus
Slide 18: Appendix
Appendix ShaMaran – A Lundin Group Company 18
Slide 19: ShaMaran - a Lundin Group company
ShaMaran - a Lundin Group company $26.2 billion - combined market cap of Lundin Group ShaMaran – A Lundin Group Company 19
Slide 20: Management and Board of Directors
Management and Board of Directors Chris Bruijnzeels – Chairman and Director Over 30 years of experience in the oil and gas industry including Senior Vice President Development of Lundin William Lundin – Director Petroleum, Shell International and PGS Reservoir Mr. Lundin is currently project enginee
Slide 21: Corporate profile
Corporate profile ▪ Share capital ▪ Major shareholders • Shares issued and outstanding 2,160,631,534 • Lundin family trusts 22.5% ▪ Market capitalization • Directors/Management 0.3% • CAD 151 million (@ 29 August 2019) ▪ Trading information ▪ Net debt* • TSX Venture TSX-V:SNM • USD 116 million (@ 30
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