Atrush Block: World-Class Oil Project

ShaMaran is a Canadian oil and gas company listed on the TSX Venture Exchange and the NASDAQ First North Growth Market (Sweden) under the symbol “SNM.” The Company has a 27.6% ownership interest in Atrush Block, a high‐quality oil field in Kurdistan that has a large production base with significant growth potential.

2022 Atrush Guidance

  • 2022 average production guidance of 36,000 to 41,000 bopd;
  • Atrush capital expenditures for 2022 planned at $116 million ($32 million net to ShaMaran). This capital program includes:
  • The drilling and completion of three development wells, including one water injection well.
  • Initiation of the gas solution project which will significantly reduce emissions by using existing infrastructure to generate electrical power from produced gas. As the Atrush field is currently dependent on diesel-fueled generators for all electrical power, this project will also therefore greatly reduce future operating costs.
  • Atrush operating expenditure is forecast to be $76 million ($21 million net to ShaMaran) for 2022, in line with 2021 actual operating costs; and
  • Atrush average lifting costs per barrel are estimated to range from $4.80 to $5.80. Atrush lifting costs are mainly fixed costs and dollar-per-barrel estimates should decrease with increasing levels of production and operational efficiencies.

Cumulative oil production to June 2022 reached over 60 million barrels.

Atrush Owership Interest

Atrush Owership Interest

Simplified Atrush Production Sharing Agreement

Simplified Atrush Production Sharing Agreement Learn More

Production

Monthly Production

Monthly Production

Quarterly Production Data

Quarterly Period Total Field Production (bbl) Average Daily Production (bpd) Average Netback Average Lifting Cost
Q1 2020 4.25 million 46,700 $35.21 $5.90
Q2 2020 4.27 million 46,900 $13.87 $5.36
Q3 2020 4.24 million 46,100 $27.26 $3.97
Q4 2020 3.75 million 40,800 $28.27 $5.10
Q1 2021 3.44 million 38,200 $45.14 $5.12
Q2 2021 3.60 million 38,900 $52.78 $4.49
Q3 2021 3.80 million 41,300 $57.68 $4.34
Q4 2021 3.25 million 35,300 $63.67 $6.73
Q1 2022 3.49 million 38,800 $85.8 $5.53
Q2 2022 3.38 million 37,100 $97.88 $5.29

 

Strong Cash Flow

In Million USD Q2.2022 Q1.2022 Q4.2021 Q3.2021 Q2.2021 Q1.2021
Operating cash, net of G&A and other cash expenses 36.0 31.1 20.5 16.2 19.3 14.1
Net gain on Atrush acquisition 0.0 0.0 0.0 0.0 0.0 0.0
Receivable/payable and working capital adjustments 4.7 (7.3) 2.8 (3.7) 3.4 (8.9)
     Cash in from operations 40.7 23.8 23.3 12.5 22.7 5.2
KRG loans, interest and KRG carry receivables collected 2.4 6.9 9.8 4.7 7.0 2.5
Purchase of additional interest in Atrush 1 0.0 0.0 0.0 0.0 0.0 0.0
Atrush Development (4.5) (1.2) (4.2) (2.6) (5.4) (2.1)
     Cash (out on) / in from investments (2.0) 5.6 5.6 2.1 1.6 0.4
Bonds repaid 0.0 0.0 (5.0) 0.0 (4.8) (4.4)
Bond coupon interest payments 0.0 (17.2) (0.3) (10.8) (0.2) (11.5)
New Bond 0.0 0.0 (3.0) 109.8    
Nemesia Guarantee 27.6 0.0 0.0 0.0 (0.0) 0.0
     Cash out on financing 27.6 (17.2) (8.2) 99.0 (4.9) (15.9)
Total change in cash 66.3 12.2 20.7 113.6 19.3 (10.3)
Opening cash 183.9 171.7 151.0 37.5 18.2 28.4
     Ending cash 250.2 183.9 171.7 151.1 37.5 18.2

The Atrush Block is a high-quality oil field that has a large production base with significant growth potential.

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.

36,000 to 41,000
bopd
2022 Guidance
$4.80 to $5.80 per barrel
2022 Lifting Cost Guidance
$116M ($32M net)
2022 Capex
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