Shamaran Petroleum Ltd. · OSL:SNM
Shamaran Petroleum — Investor Presentation (September 2015)
21 slides from Shamaran Petroleum's investor presentation, September 2015
Slide 1: Corporate Presentation
Corporate Presentation September 2015 Atrush - August 11, 2015 ShaMaran – A Lundin Group Company
Slide 2: Strategy: Return value to shareholders
Strategy: Return value to shareholders Atrush first oil • Ensure efficient project execution • Challenging situation in Kurdistan • Work closely with our partners and the MNR Realise value through further full field development • Further phases to be defined • Plan to fund from production Dive
Slide 3: Atrush block in Iraqi Kurdistan
Atrush block in Iraqi Kurdistan Awarded in 2007 Atrush ShaMaran acquired interest in 2010 Discovered Atrush in 2011 Kurdistan Partners / working interests • Shamaran / 20.1% • Taqa (Operator) / 39.9% • Marathon / 15% • KRG / 25% • KRG exercised 25% Government Interest in March 2013 • Commerc
Slide 4: Atrush world class large oil discovery
Atrush world class large oil discovery Discovered in 2011 Jurassic fractured carbonate Large 25x3 km structure • fault bounded - 3 way dip closed Resources (as at 31 December 2014) MMBoe 1P/C 2P/C 3P/C Gross Reserves 31.2 61.5 121.0 Gross Contingent 186 310 452 Gross Prospective 121 173 247
Slide 5: Well tests – What does it mean?
Well tests – What does it mean? Medium oil column • ~420 m 25o-27oAPI oil column 9,059 bopd 27oAPI • Excellent productivity • Communication East-west 8,200 bopd • No formation water on test 26oAPI • Good vertical communication • Proven in Upper Jurassic and Lower 4,200 bopd Jurassic Mus formation 24
Slide 6: Atrush Phase 1 development ongoing
Atrush Phase 1 development ongoing FDP Phase 1 approved in October Atrush block boundary 2013 Phase 1 starts development of Phase 1 western part of the field Central Processing Facilities to Further Phases handle 30,000 bopd under Saikhan block construction 4 wells being completed and tied i
Slide 7: Atrush Phase 1 production facilities
Atrush Phase 1 production facilities Modular concept with provisions to expand and replicate. Capable of handling liquid rates of 30,000 bopd, initially Maximize gas utilization. Minimize sour gas flaring with provisions for future sulphur recovery, power generation, etc. ShaMaran – A Lundin Gro
Slide 8: Project progress
Project progress April 2015 August 2015 ShaMaran – A Lundin Group Company 8
Slide 9: Project status – Equipment on site
Project status – Equipment on site Production modules on site Pipe being delivered ShaMaran – A Lundin Group Company 9
Slide 10: Project status – Civils, underground piping
Project status – Civils, underground piping Civil works substantially complete Underground piping nearing final stages ShaMaran – A Lundin Group Company 10
Slide 11: Project status – Power and tank farm
Project status – Power and tank farm Power generation packages and power sub-station installed Tank farm nearing completion ShaMaran – A Lundin Group Company 11
Slide 12: Project status – Pipe racks and welding
Project status – Pipe racks and welding Pipe rack construction Pipe welding started ShaMaran – A Lundin Group Company 12
Slide 13: Atrush export pipeline
Atrush export pipeline Atrush block Saikhan block Feeder pipeline Main export pipeline PSC partners responsible for in block pipeline section KRG to complete pipeline outside block Right of way and pipeline corridor completed Transportation agreement to be negotiated ShaMaran – A Lundin Grou
Slide 14: Updated project schedule
Updated project schedule Main contractors mobilised Delivery materials to site ongoing Continue construction Run completions in 4 development wells in Q3 2015 and first half 2016 Commissioning in second quarter 2016 Install export pipeline First oil target mid 2016 ShaMaran – A Lundin
Slide 15: Work ongoing to realise full field value
Work ongoing to realise full field value Formulate appraisal plan • Potential further delineation drilling to the east and west Field development plan update • Planned for second half 2015 Drill CK-7 in 2016 ShaMaran – A Lundin Group Company 15
Slide 16: Kurdistan economic and political situation
Kurdistan economic and political situation As from June KRG started to directly sell its own output Atrush • June: 425 kbopd direct, 150 kbopd via SOMO Kurdistan • July: 388 kbopd direct, 71 kbopd via SOMO • July sales impacted by terrorist attack on pipeline Contractor payments • Oil companies
Slide 17: Funding
Funding Current development • Rights issue provided funding to get to first oil • Deferred non first oil related costs until cash flow is positive • Latest forecast shows sufficient funds to get to Phase I first oil Further development phases • Plan to fund through production ShaMaran – A Lundin
Slide 18: Corporate profile
Corporate profile Share capital SNM share price on TSX.V • Issued and outstanding 1,579,768,534 Market capitalisation • CAD 142M (@ 12 August 2015) Major shareholders • Lundin family trusts 19.1% • Columbia Wanger 8.6% • Lundin Petroleum 6.6% • Directors/Management 0.3% Trading information
Slide 19: The Lundin Group
The Lundin Group Combined market cap >$10.9 Billion ShaMaran – A Lundin Group Company 19
Slide 20: Key points
Key points Robust Atrush development project World class resource base • Gross 2P 61.5 MMBoe • Gross 2C 310 MMboe First oil target mid 2016 Construction gaining momentum Prudent management of funds Latest forecast shows sufficient funds to get to first oil Situation in Kurdistan stable
Slide 21: 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
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