ShaMaran Petroleum Ltd. · OSL:SNM
ShaMaran Petroleum — Investor Presentation (September 2012)
23 slides from ShaMaran Petroleum's investor presentation, September 2012
Slide 1: Appraisal & Development in Kurdistan
CORPORATE PRESENTATION, SEPTEMBER 2012 Appraisal & Development in Kurdistan
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 political risk, civil unrest, general economic, market an
Slide 3: A Lundin Group Company
A Lundin Group Company 3 Combined Market Cap >$13.3 Billion
Slide 4: ShaMaran's Strategic Realignment of Assets Completed
ShaMaran’s Strategic Realignment of Assets Completed 4 »KRG-approved sale of Taza to Total in August 2012 for a total of $53.8 MM cash (including reimbursable costs prior to closing). »Relinquishment of Arbat & Pulkhana blocks (mutually agreed with the KRG) in January 2012. »Technical and financial
Slide 5: Kurdistan: Increasing Momentum
Kurdistan: Increasing Momentum 5 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 with good commercial terms. » High level of KRG activity: • 30+ exploration wells c
Slide 6: Politics: Moving in the Right Direction
Politics: Moving in the Right Direction 6 » Iraqi, Kurdistan oil payment dispute ends. Exports of over 120k+ bopd continue through the Iraqi oil pipelines. » Deal approved by the Iraqi Central Government. » Payments forthcoming to the major producers in the region. » KRG export target of over 250k b
Slide 7: Atrush – A World Class Project
Atrush – A World Class Project 7 » Atrush-2 tested over 42,200 bopd (facilities constrained) from “BSAM” reservoir. » Atrush-2 confirms additional oil discoveries below the “BSAM” in the Adaiyah & Butmah. KRG notified. » First oil planned in 2013. » Exploration upside in the sub-thrust trap and Swar
Slide 8: Atrush-2 Appraisal Well
Atrush-2 Appraisal Well 8 » 3.1km east of AT-1 discovery well. » Spudded May 2012.Reached planned Total Depth of 1750m in only 49 days. 30% under budget. » 7 reservoir cores recovered. 5 DSTs completed, 3 in the “BSAM” reservoir. » Appraised Jurassic discovery reservoirs & re- evaluated the Adaiyah
Slide 9: Atrush-2 "BSAM" Well Testing Results
Atrush-2 “BSAM” Well Testing Results 9 » AT-2 DST#5 (Sargelu): Tested up to 15,829 BOPD (equipment constrained)*. » AT-2 DST#4 (Alan): Tested up to 14,670 BOPD (equipment constrained)*. Interference from Sargelu test above confirms vertical communication. » AT-2 DST#3 (Mus): Tested up to 11,714 BOPD
Slide 10: Barsarin-Sargelu-Alan-Mus ("BSAM") Reservoir Summary
Barsarin-Sargelu-Alan-Mus (“BSAM”) Reservoir Summary 10 » “BSAM” deeper “Oil Down To” in AT-2 is extremely positive for resource potential .3D seismic has limited the structural risk. » High production rates & broken core confirm reservoir is highly fractured, supported by multi-Darcy test permeabil
Slide 11: Adaiyah Reservoir
Adaiyah Reservoir 11 » Reservoir intervals in the Adaiyah formation proven oil-bearing by logs and testing (additional to 2011 Discovery Notification). » AT-2 DST#2: Cased hole perforated test of a 10m dolomite within the Adaiyah formation tested up to 625 bopd of dry 10-11˚ API oil*. Tested by nitr
Slide 12: Butmah Reservoir
Butmah Reservoir 12 » Upper part of the Butmah formation proven oil-bearing by logs, cores and testing (additional to 2011 Discovery Notification). » Openhole test (DST#1) of 101m of the upper Butmah tested 100% oil (8-9˚ API*) using nitrogen lift. » Cores recovered show highly fractured reservoir b
Slide 13: Atrush Reservoir Summary
Atrush Reservoir Summary 13 » Type I/Type II fractured reservoir analogous (in both reservoir character and flow performance) to similar established and documented fields in Kurdistan, such as Taq Taq. » Volumetric risks associated with Gross Rock Volume & Oil In Place reduced by 3D seismic over the
Slide 14: Atrush - 3D Seismic
Atrush - 3D Seismic 14 » 307 km2 of 3D seismic acquisition completed on 11th August 2012. » Acquisition divided into 2 phases – West (147 km2, 2011) & East (160 km2, 2012). » Survey covers the whole block and also extends over the adjoining Swara Tika discovery (HKN Energy). » Preliminary data cubes
Slide 15: AT-3 Appraisal
AT-3 Appraisal 15 » AT-3 technically approved as a 9 km east stepout from the AT-1 discovery well. » A vertical well designed to locate the Oil Water Contacts and Free Water Levels in the “BSAM”, Adaiyah & Butmah formations. » Provisional TD 1800m . Estimated well cost $14 million. » Well to complet
Slide 16: Atrush Development – Forward Plan
Atrush Development – Forward Plan 16 » Q3/Q4 2012: » Award of contracts for Early Well Test Facility “EWTF”. » Declaration of Commerciality for the Atrush field. » Complete AT-1 for production. » Spud AT-3 appraisal well. » Commence installation & commissioning of EWTF. » 2013: » First Oil in Early
Slide 17: Further Exploration Upside in Atrush
Further Exploration Upside in Atrush 17 » Cretaceous hanging wall above Atrush Jurassic reservoirs (oil shows in AT-1) » Cretaceous foot wall trap » “BSAM” in the footwall » Deeper Triassic targets not reached in AT-1 » Potential extension of Swara Tika discovery into northern part of the Atrush blo
Slide 18: Atrush Jurassic Oil Discovery – 2011 Resource Base
Atrush Jurassic Oil Discovery – 2011 Resource Base 18 Gross Contingent Low Best Mean High Resources* (Barsarin, (1C) (2C) (3C) Sargelu, Alan-Mus, Adaiyah) Total (MMBOE) 275 465 513 813 Gross Prospective Low Best Mean High Resources* (Cretaceous & Jurassic Butmah) Total (MMBOE) 74 134 146 235 * YE 20
Slide 19: Strong Cash Position
Strong Cash Position 19 » Current cash position US$ 42MM+ » No outstanding debt. » Fully funded for the Atrush project. » Potential to raise debt.
Slide 20: Way Forward
Way Forward 20 » Atrush assets provides a solid base for growth. » Focus on building the company. » Pursue new ventures.
Slide 21: Lundin Group Track Record for Shareholder Return
Lundin Group Track Record for Shareholder Return 21 Company 2002 Recent 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 Petroleum $4 million MC $750 million MC 2006 Red Back $1.35/share (2000) $30.50/sh
Slide 22: Profile & Contacts
Profile & Contacts 22 » Symbol TSX V & NASDAQ OMX First North: SNM » Share Capital Issued and outstanding 810,983,860 shares www.shamaranpetroleum.com Fully diluted 813,623,861 shares » Directors and Management » Keith Hill, Chairman of the Board » J. Cameron Bailey, Director » Pradeep Kabra, Direct
Slide 23: Atrush-2: Testing the Sargelu formation (Sep 2012)
23 Atrush-2: Testing the Sargelu formation (Sep 2012)
ShaMaran Petroleum — Investor Presentation (September 2012) on 6ix