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Atrush Project

ShaMaran Petroleum Corp. holds a 27.6% direct interest in the Atrush Block production sharing contract. The Atrush Block is located in the Kurdistan region of northern Iraq.

A summary of the current property and partnership interests in the Atrush Block are set out in the following table:

CountryBlockAcreage (square kilometres)Working Interest(1)
(1) Working interest means a percentage of the ownership in an oil and gas PSC granting its owner the right to explore and develop oil and gas from a specific property which normally bears its proportionate share of the costs of exploration,development and operations as well as any royalties or other production burdens.
(2) The Operator of the Atrush Block.
(3) Held through GEP, an indirect wholly‐owned subsidiary of the Company.
Iraq (Kurdistan)Atrush Block269Taqa(2)47.4%

ShaMaran Petroleum Corp. is an oil development and exploration company with a 27.6% direct interest in the Atrush Block PSC relating to a property located in the Kurdistan Region of Iraq. The Atrush Block is located approximately 85 kilometers northwest of Erbil, the capital of Kurdistan, is 269 square kilometers in area and has oil proven in Jurassic fractured carbonates in the Chiya Khere structure. The structure is expressed at surface by the Chiya Khere mountain which runs east‐west for approximately 25 kilometers with an approximate width of 3.5 kilometers.

The Atrush Block is a high-quality oil field that has a large production base with significant growth potential. ShaMaran is generating cash flow that can fund organic growth and the Company is now strongly positioned to act on new accretive opportunities as they present themselves. As a Lundin Group Company, ShaMaran can leverage the expertise and strength of a family that has been building resource companies around the world for more than 40 years.

Oil production from Atrush commenced in July 2017. Installed production facilities have a capacity of over 39,000 barrels of oil per day (“bopd”). By mid-2019 twelve wells have been drilled with seven wells producing. Atrush’s production guidance for 2019 is 30,000 to 35,000 bopd, with an expected production of 45,000 to 50,000 bopd at 2019 exit. Installation of additional facilities during 2020 is expected to increase production capacity towards 80,000 bopd and an investment decision related to increasing Atrush production up to 100,000 bopd is expected mid-2020.

Atrush is continuously being appraised and further phases of development, including further drilling and possible facilities expansion, will be defined based on production data, appraisal information and economic circumstances.

See Annual Information Form and Reserves and Resources for further information and Quarterly Reports for project updates.

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