Shamaran Petroleum Ltd. · OSL:SNM
Shamaran Petroleum — Investor Presentation (February 2017)
21 slides from Shamaran Petroleum's investor presentation, February 2017
Slide 1: Corporate Presentation
Corporate Presentation February 2017 ShaMaran – A Lundin Group Company
Slide 2: Strategy
Strategy Focus on project execution to get to Atrush first oil • First oil probably Q2 2017 Secured funding • USD 27mln funds raised in Januari 2017 private placement, which was over-subscribed Realise value through further full field development • Further phases to be defined after obtaining
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 / 20.1% • Taqa (Operator) / 39.9% • Marathon / 15% • KRG 25% • KRG completed its right to acquire up to 25% on November 7, 201
Slide 4: Atrush is a world class large oil discovery
Atrush is a world class large oil discovery Discovered in 2011 MMBoe 1P/C 2P/C 3P/C Jurassic fractured carbonate Gross Reserves 34.5 85.1 152.2 Large 25x3 km structure Gross Contingent 185 304 442 • fault bounded - 3 way dip closure Gross Prospective 121 173 247 • 1.5 - 2.8 billion barrels in
Slide 5: 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
Slide 6: Phase I development nearing completion
Phase I development nearing completion Facilities complete and commissioning ongoing • 30,000 bopd production capacity Four wells completed and ready for production • CK-5 and CK-8 completed in Q3 2015 • AT-2 and AT-4 completed in Q3 2016 • All wells have electric submersible pumps • Over 40,000
Slide 7: Atrush facilities and well locations
Atrush facilities and well locations CK-6, AT-3 well location Phase 1 facilities AT-2 well location AT-4, CK-5, CK-8 well location CK-7 well location Under construction ShaMaran – A Lundin Group Company 7
Slide 8: Facilities ready for production
Facilities ready for production Main facilities Intermediate pigging and pressure reduction station ShaMaran – A Lundin Group Company 8
Slide 9: Atrush Feeder Pipeline under construction
Atrush Feeder Pipeline under construction 10” Spur pipeline Atrush 12” Spur pipeline Shaikan 12” Feeder pipeline 36” Feeder pipeline 10 km Kurdistan export pipeline ShaMaran – A Lundin Group Company 9
Slide 10: Feeder pipeline construction
Feeder pipeline construction Stringing out 36” pipe 36” pipeline ShaMaran – A Lundin Group Company 10
Slide 11: Feeder pipeline construction
Feeder pipeline construction River crossing diversion Welding 12” pipe ShaMaran – A Lundin Group Company 11
Slide 12: 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 12
Slide 13: Regular Kurdistan export
Regular Kurdistan export KRG continues to export via Ceyhan • Established stable market for Kurdistan/Kirkuk blend FOB Ceyhan • KRG produces approx. 565,000 barrels per day in October • Around 100,000 bopd from Kirkuk exported (50,000 bopd net to the KRG). KRG continues to pay IOC’s regularly •
Slide 14: Security situation
Security situation Kurdistan export pipeline Atrush Peshmerga Atrush control feeder pipeline Mosul Erbil 10 km ShaMaran – A Lundin Group Company 14
Slide 15: Agreement concluded on KRG carry and feeder pipeline
Agreement concluded on KRG carry and feeder pipeline All documentation signed effective 7 November 2016 Feeder Pipeline EPC agreement with KAR executed • Non Government Contractors fund the costs • Taqa as operator in full control of execution of the EPC • Automatic novation of feeder pipeline t
Slide 16: Additional funding secured
Additional funding secured Raised USD 27 million through January 2017 private placement • Issued 20% new shares at 20% discount to market price (0.10 CAD/share) • Strong market interest, issuance of 360 million shares 25% over-subscribed Positive Atrush cash flow once production has started • Ac
Slide 17: Work ongoing to realise full field value
Work ongoing to realise full field value Submitted field development plan update in November 2015 • Commitment to further phases of development pending • Production data needed • Drill CK-7 to better define center part of the field and provide additional producer • Potential further delineation dr
Slide 18: Corporate profile
Corporate profile Share capital Major shareholders • Issued and outstanding 2,158,631,534 • Lundin family trusts 16.8% Market capitalisation • Lundin Petroleum 5.6% • Directors/Management 0.3% • CAD 227 million (@ January 30, 2017) Trading information • Toronto Stock Exchange Venture • TSX-V
Slide 19: The Lundin Group
The Lundin Group Combined market cap USD 16.7 billion ShaMaran – A Lundin Group Company 19
Slide 20: Key points
Key points World class resource base • Gross 2P 85.1 MMBoe • Gross 2C 304 MMboe Phase I Atrush development project nearing completion • Facilities construction complete and commissioning ongoing • Spur pipeline inside block installed. IPPR and pump station completed • Feeder pipeline work outsid
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
ShaMaran Petroleum — Investor Presentation (February 2017) on 6ix