Shamaran Petroleum Ltd. · OSL:SNM
Shamaran Petroleum — Investor Presentation (August 2020)
18 slides from Shamaran Petroleum's investor presentation, August 2020
Slide 1: Corporate Presentation August 2020
Corporate Presentation August 2020
Slide 2: Shamaran 2020 Atrush Overview
Shamaran 2020 Atrush Overview Mbopd 46.8* 2020 YTD Stable production gross production MMbbl 29.9 Net 2P Large reserve and resource base reserves ** Capex Reduction 80% in Revised 2020 Strategic reductions in response to WP&B global challenges US$/boe Significant optimization of lifting costs 4.5-5.1
Slide 3: Shamaran in Kurdistan
Shamaran in Kurdistan ShaMaran is an E&P company active in Kurdistan region Asset Location Kurdistan’s oil industry now well established Atrush • Significant reserves and resources Kurdistan • Largely stable political situation • Export route to Mediterranean via Turkish port of Ceyhan ShaMaran has
Slide 4: Health Environment & Safety - navigating the “new normal”
Health Environment & Safety - 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 •
Slide 5: Effectively Resolved Liquidity Issues
Effectively 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 grante
Slide 6: Atrush 2020 – Delivering Cost Savings
Atrush 2020 – 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
Slide 7: Atrush - Delivering To Production Targets
Atrush - Delivering To Production Targets 50000 46800* 45000 40000 35000 30000 Bopd 25000 46651 46888 47099* 20000 15000 10000 5000 0 Q1.2020 Q2.2020 Q3.2020 Q4.2020 Quarterly Sales Average (stb/d) ShaMaran 2019 Sales Average Lower Guidance 2019 Sales Average (stb/d) ShaMaran 2019 Sales Average Uppe
Slide 8: Atrush - Delivering Production Growth
Atrush - Delivering Production Growth EPF Offline for addition of EPF 50000 Atrush 18-Month Oil Production T2 45000 Reboiler Shutdown to Flushing and CK-8 ESP Tie-in Desalter CK-8 ESP Online Units Failure 40000 35000 30000 25000 Bopd 20000 15000 10000 5000 0 Apr-20 Mar-19 Apr-19 Feb-20 Mar-20 May-19
Slide 9: Atrush 2020 – Capitalize on Capacity Investments
Atrush 2020 – Capitalize on Capacity Investments 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 •
Slide 10: Atrush – Development Planning
Atrush – Development Planning 2020+ 2020 2019 Realize Value of Position to Deliver Value Matured Resources Debottleneck & Mature Resource Base 2017-2018 Expand Processing Deploy integrated Field Start-up Capacity and Production Development Plan Capacity at PF-1 and EPF to meet Identifying and
Slide 11: Update on Operational Cash Flow
Update on Operational Cash Flow In million USD Q2.2020 Q4.2019 Operating cash, net of G&A and other cash expenses 5.7 15.9 Receivable/payable and working capital adjustments (2.3) (14.0) Cash in from operations 3.4 1.9 KRG loans, interest and KRG carry receivables collected 3.9 2.3 Atrush developmen
Slide 12: Cost oil and KRG loans & receivables add to cash flow
Cost oil and KRG loans & receivables add to cash flow KRG loans, receivables and cost oil as of June 30, 2020* (presented in USD million) (*) amounts in this table reflect ShaMaran’s 27.6% interest in Atrush. (**) The Exploration Costs Receivable is related to the repayment of certain development co
Slide 13: ShaMaran ESG
ShaMaran 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 •
Slide 14: ShaMaran Strategy
ShaMaran Strategy Focus on Maintaining Stable High Production Rates • 46.8 Mbopd average achieved by increasing processing capacity to meet well capacity: − Debottlenecking current facilities − Commissioning facility upgrades • Accurate dynamic model key to efficient production of large resource bas
Slide 15: 2020 Additional Slides and Photos
Corporate Presentation – August 2020 2020 Additional Slides and Photos
Slide 16: ShaMaran, a Lundin Group company
Appendix – ShaMaran, a Lundin Group company USD 23.2 billion - combined market cap of Lundin Group [ 15 ]
Slide 17: Management and Board of Directors
Appendix – 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
Slide 18: Appendix – Corporate Profile
Appendix – Corporate Profile Major shareholders Share Capital • Lundin family trusts 22.6% • Shares issued and outstanding 2,162,911,534 • Directors/Management 0.3% Market Capitalization Trading Information • CAD 65 million (@ 19 August 2020) • TSX Venture TSX-V:SNM Net Debt • NASDAQ First North Gro
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