Shamaran Petroleum Ltd. · OSL:SNM
Shamaran Petroleum — Investor Presentation (July 2020)
24 slides from Shamaran Petroleum's investor presentation, July 2020
Slide 1: Corporate Presentation July 2020
Corporate Presentation July 2020
Slide 2: Shamaran at a Glance
Shamaran at a Glance 46,800* Average 2020 bopd Atrush Asset provides large production base bopd 29.9 Net 1/1/2020 MMbbl 2P oil reserves ** Large reserve and resource base 67.2 Net 2C oil Strategic reductions in response to MMbbl resources ** global challenges 4.5-5.1 Lifting costs 2020e Significant
Slide 3: Shamaran in Kurdistan
Shamaran in Kurdistan ShaMaran is an E&P company active in the Kurdistan region Asset Location Kurdistan’s oil industry is at a relatively early stage of development • Significant reserves and resources Atrush • Largely stable political situation Kurdistan • Well established export route to the Medi
Slide 4: COVID Preparedness
COVID 19 Preparedness Assured Business Continuity • COVID 19 Action Plan proactively implemented with critical aspects/parameters monitored on a daily basis. • Priority was to keep employees safe, informed and prepared • All arriving personnel undergoing quarantine procedures Minimized Operations Te
Slide 5: Delivering Production Targets
Atrush - Delivering Production Targets 50000 46800* 45000 40000 35000 30000 Bopd 25000 46651 46883** 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 Upper Guidan
Slide 6: Delivering Production Growth
Atrush - Delivering Production Growth Atrush 18-Month Oil Production EPF Offline for addition of EPF 50000 T2 45000 7day Export Shutdown to CK-8 ESP Pipeline Tie-in Desalter Online Shutdown Units 40000 Reboiler Flushing and 35000 CK-8 ESP Failure 30000 25000 Bopd 20000 15000 10000 5000 0 Apr-20 Apr-
Slide 7: 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% − Atrush capital expenditures from USD 131 million (USD 36 million net to ShaMaran) to USD 28 million (USD 8 million net to ShaMaran) for 2020 • Red
Slide 8: 2020 – Capitalize on Well Capacity Investment
Atrush 2020 – Capitalize on Well Capacity Investment • Best in class D&C performance delivered well capacity in excess of 50,000 bopd from new wells: − CK-11 with a capacity of 8,500 bopd − CK-12 with a capacity of 2,000 bopd − CK-13 with a capacity of 6,000 bopd − CK-15 with a capacity of 7,500 bop
Slide 9: 2020 – Expand Processing Capacity
Atrush 2020 – Expand Processing Capacity 2020 Processing Capacity Delivery • Desalter Units at PF-1 − Desalter units installed during Q4.2019 shutdown − Desalter units commissioned and online during Q1.2020 • Installation of Second Train at Early Production Facility (“EPF”) − EPF installed at Pad E
Slide 10: 2020 – Position to Deliver Organic Growth
Atrush 2020 – Position to Deliver Organic Growth • Progress Atrush Upgrades − Processing Capacityincrease processing capacity to match well capacity • Complete integrated Field Development Plan − FDP update work has proven that an integrated column conceptualization and development approach provides
Slide 11: ESG Environmental Focus
Atrush 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 [ 10 ]
Slide 12: ESG Social Focus
Atrush ESG Social Focus • Successful localization plan >80% staffing from Kurdistan • Optimizing local content in services and suppliers • Engaging in and improving local communities in three key sectors in 2020 − Education − Agriculture − Woman & Youth [ 11 ]
Slide 13: ESG Governance Focus
Atrush ESG Governance Focus • ShaMaran Canadian oil and gas company, publicly listed in Toronto and Stockholm: - Adhering to Corporate Governance Practices established in National Policy 58-201 - Code of Business Conduct and Ethics - Policies and practices in place ensuring Board and Managerial deci
Slide 14: 2020+ - Deliver Organic Growth
Atrush 2020+ - Deliver Organic Growth • Finalize Atrush Upgrades in 2021 − Sustain production above current levels − Displace diesel use with gas for power generation − 120,000 stb additional storage − (+ 30,000 stb additional storage in 2022) • Implement integrated Field Development Plan − Expand f
Slide 15: Atrush – Development Planning
Atrush – Development Planning 2020+ 2020 Realize Value of 2019 Matured Resources Position to Deliver Value Debottleneck & Mature Resource Base 2017-2018 Drill additional wells to fill available capacity at Deliver Production Start-up PF-1 and EPF Capacity Identifying and Deliver cost savings
Slide 16: Update on Operational Cash Flow
Update on Operational Cash Flow In million USD Q1.2020 Q4.2019 Operating cash, net of G&A and other cash expenses 7.9 15.9 Receivable/payable and working capital adjustments (5.4) (14.0) Cash in from operations 1.9 1.9 KRG loans, interest and KRG carry receivables collected 2.1 2.3 Atrush Developmen
Slide 17: 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 March 31, 2020* (*) amounts in this table reflect ShaMaran’s 27.6% interest in Atrush. (**) The Exploration Costs Receivable is related to the repayment of certain development costs that ShaMaran paid on
Slide 18: Bondholders approve amendment to key bond terms
Summary of amended Bond Terms Bondholders approve amendment to key bond terms: • Draw USD 22.8 million from the Liquidity Guarantee (provided by Nemesia SARL, Lundin family trust entity) into Debt Service Retention Account, pledged to bondholders, to be used to: − pay USD 11.4 million Jul 5th 2020 c
Slide 19: ShaMaran Strategy
ShaMaran Strategy Focus on Maintaining Stable High Production Rates • Achieved 46,800bopd 2020 average by: − Debottlenecking current facilities − Optimizing production thru additional facilities • Investing to define next phases of development by mid 2020 Focus on Financial Resilience • Successfully
Slide 20: 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 21: Q2.2020 Operations Update
Q2.2020 Operations Update 2020 Additional Slides and Photos
Slide 22: Appendix – ShaMaran, a Lundin Group company
Appendix – ShaMaran, a Lundin Group company USD 23.2 billion - combined market cap of Lundin Group [ 21 ]
Slide 23: Appendix – 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 24: Appendix – Corporate Profile
Appendix – 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 76 million (@ 30 June 2020) Trading Information Net Debt • TSX Venture TSX-V:SNM • USD 119 million (@ 31 Ma
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