Shamaran Petroleum Ltd. · OSL:SNM

Shamaran Petroleum — Investor Presentation (January 2017)

20 slides from Shamaran Petroleum's investor presentation, January 2017

  1. Slide 1: Corporate Presentation

    Corporate Presentation January 2017 ShaMaran – A Lundin Group Company

  2. Slide 2: Strategy

    Strategy  Focus on project execution to get to Atrush first oil • First oil probably Q2 2017  Secure funding • Potential to Tap Super Senior bond  Realise value through further full field development • Further phases to be defined after obtaining production data • Plan to fund future development

  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 / 20.1% • Taqa (Operator) / 39.9% • Marathon / 15% • KRG 25% • KRG completed its right to acquire up to 25% on November 7, 201

  4. 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

  5. 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

  6. 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

  7. 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

  8. Slide 8: Facilities ready for production

    Facilities ready for production  Main facilities  Intermediate pigging and pressure reduction station ShaMaran – A Lundin Group Company 8

  9. Slide 9: Atrush Feeder Pipeline under construction

    Atrush Feeder Pipeline under construction 10” pipeline Atrush Shaikan 12” pipeline 36” pipeline 10 km Kurdistan export pipeline ShaMaran – A Lundin Group Company 9

  10. Slide 10: Feeder pipeline construction started

    Feeder pipeline construction started 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: 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 •

  13. Slide 13: Security situation

    Security situation Kurdistan export pipeline Atrush Peshmerga Atrush control feeder pipeline Mosul Erbil 10 km ShaMaran – A Lundin Group Company 13

  14. Slide 14: 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

  15. Slide 15: Additional funding needed

    Additional funding needed  Around USD 20 million, depending on costs, first oil and payment situation  Potential to use existing facilities to tap the existing Super Senior bond in stages • Same terms as existing Super Senior Bond (11.5% interest, maturity November 2018) • Strong support from the

  16. Slide 16: 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

  17. Slide 17: Corporate profile

    Corporate profile  Share capital  Major shareholders • Issued and outstanding 1,798,631,534 • Lundin family trusts 16.8%  Market capitalisation • Lundin Petroleum 5.8% • Directors/Management 0.3% • CAD 216 million (@ January 12, 2017)  Trading information • Toronto Stock Exchange Venture • TSX-V

  18. Slide 18: The Lundin Group

    The Lundin Group Combined market cap $16.7 billion ShaMaran – A Lundin Group Company 18

  19. Slide 19: 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 • In block spur pipeline installed. IPPR and pump station completed • Feeder pipeline work outside th

  20. 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

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