ShaMaran Q3 2015 Financial and Operating Results
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 11/13/15 -- ShaMaran Petroleum Corp. ("ShaMaran" or the "Company") (TSX VENTURE: SNM)(OMX: SNM) is pleased to announce its financial and operating results for the three and nine months ended September 30, 2015. Unless otherwise stated all currency amounts indicated as "$" in this news release are expressed in thousands of United States dollars.
A contract for the engineering, procurement and construction of the pipeline to be constructed within the Atrush Block was signed on November 1, 2015 by TAQA and a Kurdistan Regional Government ("KRG") approved pipeline contractor. The pipeline is expected to be completed in time for first oil which is targeted for mid-year 2016.
Construction of the 30,000 bopd Atrush Phase 1 Production Facility ("Production Facility") is continuing. The main production modules have been delivered to site and are being installed. Construction of the tank farm is substantially complete. Power generation packages and the main power sub-station have been installed and construction of pipe racks and pipe fabrication is progressing. This is a challenging environment which continues to put pressure on the schedule.
The Chiya Khere-5 ("CK-5") and Chiya Khere-8 ("CK-8") development wells were successfully tested and completed. The Operator plans to complete the previously tested Atrush-2 ("AT-2") and Atrush-4 ("AT-4") wells in the first half of 2016. All four wells are to be tied-in to the Production Facility and ready for production at start-up.
Chris Bruijnzeels, President and CEO of ShaMaran, commented, "The signing of the contract for the dedicated feeder pipeline represents an important milestone on the path to first oil and, while certain challenges remain, with the continued progress on the construction activities at the Production Facility and four successfully tested production wells in hand Atrush Phase 1 remains on target for commissioning during the second quarter of 2016 with first oil to follow in mid 2016."
FINANCIAL AND OPERATING RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015
During the reporting period the Company continued its appraisal and development campaign in respect of the Atrush petroleum property located in the Kurdistan Region of Iraq which constitutes the continuing operations of the Company. Atrush currently generates no revenues.
Financial Results
The Company has reported a net loss of $1.9 million in the third quarter of 2015 driven primarily by general and administrative expenses, share based payment expenses and finance cost, the substantial portion of which was expensed borrowing costs on the Company''s senior secured bonds.
Total assets increased during the first three quarters of 2015 by $55.4 million due to inflow of funds of $59.1 raised through the issue of share capital on a Rights Offering concluded in February 2015 and increases of $1.7 million in liabilities and $1.0 million in the share based payments reserve relating to the amortization of share options, which were offset by a net loss of $6.4 million.
The intangible assets increased by $56.1 million in the 9 months ended September 30, 2015 which was comprised of Atrush field development and appraisal activity costs totalling $44.4 million, capitalised borrowing costs of $9.4 million which relate to the financing of the Atrush development project, and capitalised general and administrative costs relating to Atrush Block E&E activities totalling $2.3 million.
The increase by $0.7 million in the cash position of the Company during the nine months ended September 30, 2015 was due to cash inflows of $59.1 million from the issuance of shares of the Company on an offering of rights to existing shareholders of the Company and to cash outflows of $46.8 million on Atrush Block development and appraisal activities, $8.6 million of cash interest payments made to bondholders, $1.4 million on G&A and other cash expenses and $1.6 million in negative cash movements due to changes in working capital items.
Operating Results
Production Facility and Export Pipeline
Well Results
Corporate Highlights
OUTLOOK
Production Facility
Construction of the 30,000 bopd Atrush Phase 1 Production Facility will continue. Installation of pipe racks and pipework will continue, followed by installation of electrical equipment and instrumentation. Pipe fabrication and welding will continue and special attention will be given to progress of these critical items. Commissioning of the Production Facility is targeted for the second quarter 2016, with first oil to follow in mid 2016.
Water injection facilities will be installed in 2016.
Oil Export Pipeline
A contract for the engineering, procurement and construction of the pipeline to be constructed within the Atrush Block was signed on November 1, 2015 by TAQA and a KRG approved pipeline contractor. The pipeline is expected to be completed in time for first oil production. The KRG is responsible for constructing the pipeline section from the Atrush block boundary to the tie-in point, which the Company expects to also be completed in time for the targeted first oil date.
Wells
The Operator plans to complete the AT-2 and AT-4 wells in the first half of 2016. Four producers, all equipped with ESPs, are planned to be available for production prior to start up.
ABOUT SHAMARAN
ShaMaran Petroleum Corp. is a Kurdistan focused oil development and exploration company with a 26.8% direct interest in the Atrush oil discovery until such time that the Kurdistan Regional Government has completed the exercise of its right to acquire up to a 25% interest. The Atrush Block is currently undergoing an appraisal and development campaign.
ShaMaran is a Canadian oil and gas company listed on the TSX Venture Exchange and the Nasdaq First North Exchange (Stockholm) under the symbol "SNM". Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Pareto Securities AB is the Company''s Certified Advisor on NASDAQ OMX First North.
The Company''s condensed interim consolidated financial statements, notes to the financial statements and management''s discussion and analysis have been filed on SEDAR () and are also available on the Company''s website ().
FORWARD-LOOKING STATEMENTS
This news release contains statements and information 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 business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and management''s capacity to execute and implement its future plans. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking information. Forward-looking information typically contains statements with words such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "outlook", "budget" or the negative of those terms or similar words suggesting future outcomes. The Company cautions readers regarding the reliance placed by them on forward-looking information as by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Company.
Actual results may differ materially from those projected by management. Further, any forward-looking information is made only as of a certain date and the Company undertakes no obligation to update any forward-looking information or statements to reflect events or circumstances after the date on which such statement is made or reflect the occurrence of unanticipated events, except as may be required by applicable securities laws. New factors emerge from time to time, and it is not possible for management of the Company to predict all of these factors and to assess in advance the impact of each such factor on the Company''s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information.
Contacts:
Chris Bruijnzeels
President and CEO
ShaMaran Petroleum Corp.
+41 22 560 8605
Sophia Shane
Corporate Development
ShaMaran Petroleum Corp.
+1 604 689 7842
Robert Eriksson
Investor Relations, Sweden
ShaMaran Petroleum Corp.
+46 701 112615
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Datum: 13.11.2015 - 16:30 Uhr
Sprache: Deutsch
News-ID 1399440
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