ShaMaran Petroleum Ltd. · OSL:SNM

ShaMaran Petroleum — Investor Presentation (May 2016)

21 slides from ShaMaran Petroleum's investor presentation, May 2016

  1. Slide 1: Corporate Presentation

    Corporate Presentation May 2016 ShaMaran – A Lundin Group Company

  2. Slide 2: Strategy

    Strategy  Focus on project execution to get to Atrush first oil • Four wells ready for production • Facilities commissioning started • KRG pipeline delayed • First oil targeted for Q4 2016  Additional funding secured • New USD 17 million Super Senior bond issued • Payment in kind (PIK bonds) of US

  3. Slide 3: Atrush block in Iraqi Kurdistan

    Atrush block in Iraqi Kurdistan  Awarded in 2007 Atrush  ShaMaran acquired interest in 2010 Kurdistan  Discovered Atrush in 2011  Partners / working interests • Shamaran / 26.8% • Taqa (Operator) / 53.2% • Marathon / 20% • KRG / up to 25% right to back in • In March 2013 the KRG gave notice of i

  4. Slide 4: Atrush is a world class large oil discovery

    Atrush is a world class large oil discovery  Discovered in 2011  Jurassic fractured carbonate  Large 25x3 km structure • fault bounded - 3 way dip closure  1.5 - 2.8 billion barrels in place  FDP approved October 2013  7 wells drilled to date  FDP Update presented in November 2015  Further p

  5. Slide 5: Reserves increase proves excellent potential

    Reserves increase proves excellent potential  Positive test results proved up a larger reserves area  Reserves to be developed by 5 wells (4 existing wells plus CK-7)  End 2015 Reserves and Resource increase • Gross 2P Reserves increased from 61.5 MMboe to 85.1 MMboe • Gross 2P + 2C Resources inc

  6. Slide 6: Phase 1 development nearing completion

    Phase 1 development nearing completion  Atrush FDP approved in October 2013  30,000 bopd Phase 1 Central Processing Facilities being commissioned  4 wells ready for production • CK-5 and CK-8 completed in Q3 2015 • AT-2 and AT-4 to be completed in June and July 2016 • All are ESP completions • Ov

  7. Slide 7: Well tests show excellent productivity

    Well tests show excellent productivity 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 forma

  8. Slide 8: 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

  9. Slide 9: Commissioning started

    Commissioning started  Equipment installed  Starting up Emergency Diesel Generator ShaMaran – A Lundin Group Company 9

  10. Slide 10: Putting the last pieces together

    Putting the last pieces together  Shelter construction  Finalising cabling ShaMaran – A Lundin Group Company 10

  11. Slide 11: Atrush export

    Atrush export Feeder pipeline Kurdistan Export Pipeline  Atrush crude to be exported via existing Kurdistan Export Pipeline to Fishkabur and on to Ceyhan in Turkey  Sufficient pipeline capacity available to accommodate Atrush production ShaMaran – A Lundin Group Company 11

  12. Slide 12: Atrush feeder pipeline

    Atrush feeder pipeline  In block scope progressing according to plan • Pumping station • 6 km 10” section from Production facilities to intermediate pigging and pressure reduction station (IPPR) • 2 km 12” section from IPPR to Atrush Block boundary  KRG changed scope of pipeline outside block boun

  13. Slide 13: Atrush Feeder Pipeline – changed scope

    Atrush Feeder Pipeline – changed scope 10” pipeline Atrush Shaikan 12” pipeline 36” pipeline 10 km Kurdistan export pipeline ShaMaran – A Lundin Group Company 13

  14. Slide 14: Project status

    Project status  Four wells drilled and tested. Two wells completed and ready for production  Two final wells to be completed in June and July  Commissioning started in May  Changed scope and delay in feeder pipeline installation outside block boundary  First oil Q4 2016 ShaMaran – A Lundin Grou

  15. Slide 15: Work ongoing to realise full field value

    Work ongoing to realise full field value  Submitted field development plan update in November 2015 • No commitment to further phases of development • Production data needed • Drill CK-7 to better define center part of the field and provide additional producer • Potential further delineation drillin

  16. Slide 16: Positive Development of Kurdistan export

    Positive Development of Kurdistan export  KRG continues to export via Ceyhan • Established stable market for Kurdistan/Kirkuk blend FOB Ceyhan • KRG exported approx. 512,000 barrels per day in April • North Oil Company (Kirkuk) has stopped exporting, reducing KRG exports by approx. 150,000 barrels

  17. Slide 17: Secured additional funding

    Secured additional funding  Financing Arrangement added USD 33 million liquidity in 2016 • Issued USD 17 mln new Super Senior Bonds • Same terms as Existing Bond (11.5% interest, maturity November 2018) • Option to pay future interest payments in cash or with newly issued bonds • Converted USD 18 m

  18. Slide 18: Corporate profile

    Corporate profile  Share capital  SNM share price on TSX.V • Issued and outstanding 1,798,631,534  Market capitalisation • CAD 180M (@ May18, 2015)  Major shareholders • Lundin family trusts 16.8% • Lundin Petroleum 5.8% • Directors/Management 0.3%  Trading information • Toronto Stock Exchange

  19. Slide 19: The Lundin Group

    The Lundin Group Combined market cap $12 Billion ShaMaran – A Lundin Group Company 19

  20. Slide 20: Key points

    Key points  Phase I Atrush development project nearing completion  World class increased resource base • Gross 2P 85.1 MMBoe • Gross 2C 304 MMboe  First oil target Q4 2016 • Facilities construction on track for completion mid 2016 • In block feeder pipeline installation progressing well • KRG sco

  21. 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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