Shamaran Petroleum Ltd. · OSL:SNM
Shamaran Petroleum — Investor Presentation (September 2020)
18 slides from Shamaran Petroleum's investor presentation, Sep 24, 2020
Slide 1: Corporate Presentation September 2020
Corporate Presentation September 2020 SHAMARAN www.shamaranpetroleum.com petroleum corp
Slide 2: Shamaran 2020 Atrush Overview
Shamaran 2020 Atrush Overview TXS: SNM; NASDAQ OMX: SNM 46.7* Mbopd 2020 YTD gross production - Stable production 69% Production increase 2020.H1 vs. 2019.H1 108.5 MMbbl Gross 2P reserves** - Large reserve & resource base 80% 2020 CAPEX Reduction - Strategic response to global challenges 4.5-5.1 US$
Slide 3: Shamaran in Kurdistan
Shamaran in Kurdistan ShaMaran is an E&P company active in Kurdistan region Atrush Location Kurdistan’s oil industry now well established • Significant reserves and resources • Largely stable political situation • Export route to Mediterranean via Turkish port of Ceyhan ShaMaran has 27.6% interest i
Slide 4: HSE - navigating the “new normal”
HSE - navigating the “new normal” Transitioning from initial pandemic response • Maintain and optimize COVID 19 Action Plan implemented in Q1.2020 • Anticipate potential changes and act pre-emptively to enable rapid, fact-based action Ensuring health and safety of personnel • 2020 work plan adjusted
Slide 5: Delivering Production Targets
Delivering Production Targets 50000 46700* 45000 40000 35000 30000 Bopd 25000 46651 46888 46514* 20000 15000 10000 5000 0 Q1.2020 Q2.2020 Q3.2020 Q4.2020 Quarterly Sales Average (stb/d) ShaMaran 2020 Sales Average Lower Guidance 2020 Sales Average (stb/d) ShaMaran 2020 Sales Average Upper Guidance (
Slide 6: Delivering Production Growth
Delivering Production Growth 50000 July 2017 July 2017-Dec 2019 2020 Commissioned fully Expand well capacity Expand EPF to 18 Mbopd 45000 automated facilities to +60 Mbopd with 30 Mbopd Deliver cost savings processing capacity Debottleneck PF-1 to 40000 Progress Integrated FDP (“PF-1”) 4
Slide 7: FDP and Future Growth Plans
FDP and Future Growth Plans Expanded Processing Capacity to 58 Mbopd to Meet Well Capacity • Installation of Second Train at Early Production Facility (“EPF”) − Second production train (EPF.T2) brings current Atrush processing capacity in line with well capacity circa 58 Mbopd • Processing Facility
Slide 8: Delivering Cost Savings
Delivering Cost Savings 2020 budget updated to suit low oil price environment and market volatility • Reduced Capital Expenditures by 80% − From $131MM ($36MM net to ShaMaran) to USD 28 million ($8MM net to ShaMaran) for 2020 • Reduced Operating Expenditures by 22% − From $105MM ($29MM net to ShaMar
Slide 9: KRG Payments
KRG Payments Revenue payment uncertainty easing KRG loans, receivables and cost • Resumption of timely and consistent oil as of June 30, 2020* (presented in million USD) payments from KRG for oil deliveries in March to July 2020 • ShaMaran continuing dialogue with KRG for repayment of $41.7MM owed f
Slide 10: Resolved Liquidity Issues
Resolved Liquidity Issues Liquidity shortfall successfully resolved with bondholders: • Funds from full drawdown of Liquidity Guarantee (provided by Nemesia SARL, Lundin family trust entity) paid July 2020 bond interest and remaining funds to provide future credit support • Waiver granted until July
Slide 11: ShaMaran vs Kurdish Peers, Brent Crude
ShaMaran vs Kurdish Peers, Brent Crude (percentage difference in price since Jan 2019)* [ 10 ] *Courtesy Yahoo Finance.
Slide 12: ESG
ESG Environmental Focus • Proper disposal of all produced water • Effective waste management program • Timely remediation of all impacted locations • Plan to eliminate flaring and emissions via gas sweetening project Social Focus • Successful localization plan >80% staffing from Kurdistan • Optimizi
Slide 13: Outlook
Outlook Focus on Maintaining Stable High Production Rates • 46.7 Mbopd average achieved by increasing processing capacity to meet well capacity: − Debottlenecking current facilities − Commissioning facility upgrades • Reservoir management and well deployment key to realising maximum value in reset o
Slide 14: Cautionary Statements
Cautionary Statements 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 and
Slide 15: Additional Slides
Corporate Presentation Additional Slides SHAMARAN petroleum corp
Slide 16: Management and Board of Directors
Management and Board of Directors Chris Bruijnzeels – Chairman and Director William Lundin – Director Over 30 years of experience in the oil and gas industry Mr. Lundin is currently project engineer, production including Senior Vice President Development of operations, with International Petroleum C
Slide 17: ShaMaran, a Lundin Group company
ShaMaran, a Lundin Group company USD 20.1 billion - combined market cap of Lundin Group [ 16 ]
Slide 18: Corporate Profile
Corporate Profile Major shareholders Share Capital • Lundin family trusts 22.7% • Shares issued and outstanding 2,165,191,534 • Directors/Management 0.3% Market Capitalization Trading Information • CAD 87 million (@ 21 September 2020) • TSX Venture TSX-V:SNM Net Debt • NASDAQ First North Growth (Sto
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