Click here to close now.




















Welcome!

Microsoft Cloud Authors: Eric Aarrestad, Greg O'Connor, Liz McMillan, Aleksei Gavrilenko, Elizabeth White

News Feed Item

ShaMaran Q3 2012 Financial and Operating Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/21/12 -- ShaMaran Petroleum Corp. (TSX VENTURE:SNM)(OMX:SNM) ("ShaMaran" or the "Company") is pleased to announce its financial and operating results for the three and nine months ended September 30, 2012.


Highlights

--  On November 7, 2012 General Exploration Partners Ltd, operator of the
    Atrush Block and acting on behalf of the Contractor Group under the
    Atrush Block Production Sharing Contract, submitted to the Atrush Block
    Management Committee a Declaration of Commercial Discovery with effect
    from November 7, 2012. 
--  The Atrush-2 appraisal well was spudded on May 23, 2012 and a total
    depth of 1,750 meters was reached ahead of schedule on July 10, 2012.
    Following the conclusion of the comprehensive well testing program the
    Company announced on September 13, 2012 that the main reservoir in
    Atrush-2 produced a combined flow rate of more than 42,200 barrels of
    oil per day ("bopd") and that additional oil resources were confirmed in
    two additional formations. 
--  The Atrush 1 discovery well which was drilled last year was completed in
    November 2012. The well is now ready to be connected to production
    facilities and put on stream as a future producer. 
--  Civil works for road access and site preparation for the Atrush-3
    appraisal well are nearing completion. The drilling rig used to drill
    Atrush-2 and complete Atrush-1 will be moved to Atrush-3 which is
    expected to spud before the end of this year. 
--  3D seismic acquisition on the Atrush Block was completed on August 11,
    2012. Final processing of the complete 3D seismic survey is expected in
    the first quarter of 2013. 
--  The tendering process has been completed for a contract to install and
    operate extended test facilities ("ETF") on the Atrush Block with a
    production capacity of up to 5,000 bopd. The ETF is expected to be
    commissioned in the first quarter of the year 2013 with production
    coming from the Atrush-1 well. 
--  The Company announced on August 20, 2012 that it sold its entire 20%
    undivided participating interest in the Taza production sharing contract
    ("PSC") to a subsidiary of Total S.A. for a USD 48 million purchase
    price plus a reimbursement of costs incurred on joint operations from
    April 1, 2012 until the closing date. 
--  The Company signed final binding agreements with the KRG in January 2012
    to relinquish the 60% working interests previously held in each of the
    Arbat and Pulkhana PSCs. An amount of $25 million was paid in January
    2012 to the KRG as relinquishment fees to fulfill all outstanding
    financial commitments on these two blocks. The agreements relieve the
    Company of any further obligations under these PSCs. Disappointing
    testing results from the Pulkhana 9 well led the Company to this
    decision. 
--  The Company has re-engaged McDaniel & Associates Consultants Ltd
    ("McDaniels"), its independent qualified resources evaluator, to provide
    the Company with a Detailed Property Report ("DPR") which will include
    the results of an evaluation of the reserves and resources data of the
    Company as at December 31, 2012. 
--  In August 2012 the Company repaid in full the short term financing of
    $10 million which had been obtained in April 2012 from two related
    parties. 
--  The Company reported net income of nil and a net loss of $26.2 million
    for the three and nine months ended September 30, 2012 (2011: net losses
    of $2.8 million and 3.3 million). The cash balance of the Company was
    $43.3 million as at September 30, 2012 (December 31, 2011: $49.1
    million). 

Financial and Operating Results for the three and nine months ended September 30, 2012

During the nine months ended September 30, 2012 the Company continued its exploration and appraisal campaign in respect of petroleum properties located in the Kurdistan Region of Iraq which constitute the continuing operations of the Company. These petroleum properties have generated no revenues. The net loss in the first three quarters of 2012 was primarily driven by one-time relinquishment fees totaling $25 million which were relating to the relinquishment of the Pulkhana and Arbat Block PSCs paid to the KRG in January 2012.


Condensed Interim Consolidated Statement of Comprehensive Income
(Unaudited, expressed in thousands of United States Dollars)

                                           Three months         Nine months
                                                  ended               ended
                                           September 30,       September 30,
                                         2012      2011      2012      2011
---------------------------------------------------------------------------
                                                                           
Expenses from continuing operations                                        
General and administrative                                                 
 (expense) / recovery                    (512)      202    (1,355)     (799)
Share based payments expense               (2)      (70)       (8)     (243)
Depreciation and amortisation                                              
 expense                                  (46)      (58)     (143)     (166)
Share of loss of associate                (97)     (173)     (209)     (282)
Relinquishment costs                        -         -   (25,732)        -
Impairment recovery / (loss)             (138)        -       559         -
Gain on sale of asset                   1,100         -     1,100         -
---------------------------------------------------------------------------
Income / (loss) before finance                                             
 items and income tax expense             305       (99)  (25,788)   (1,490)
---------------------------------------------------------------------------
                                                                           
Finance cost                             (393)   (2,780)     (719)   (1,984)
Finance income                              1       147       383       424
---------------------------------------------------------------------------
Net finance loss                         (392)   (2,633)     (336)   (1,560)
---------------------------------------------------------------------------
Loss before income tax expense            (87)   (2,732)  (26,124)   (3,050)
Income tax expense                        (11)      (32)      (63)     (106)
---------------------------------------------------------------------------
Net loss from continuing operations       (98)   (2,764)  (26,187)   (3,156)
Discontinued operations                                                    
Loss from discontinued operations         (12)      (46)      (62)     (167)
---------------------------------------------------------------------------
Net loss for the period                  (110)   (2,810)  (26,249)   (3,323)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                                           
Other comprehensive income:                                                
Currency translation differences           21       (61)        4         8
---------------------------------------------------------------------------
Total other comprehensive income /                                         
 (loss)                                    21       (61)        4         8
---------------------------------------------------------------------------
                                                                           
Total comprehensive loss for the                                           
 period                                   (89)   (2,871)  (26,245)   (3,315)
---------------------------------------------------------------------------
---------------------------------------------------------------------------


Condensed Interim Consolidated Balance Sheet
(Unaudited, expressed in thousands of United States Dollars)

                                           September 30,        December 31,
                                                   2012                2011
---------------------------------------------------------------------------
                                                                           
Assets                                                                     
Non-current assets                                                         
Intangible assets                                 3,046              45,836
Property, plant and equipment                       112                 382
Investment in associate                          57,422              51,835
---------------------------------------------------------------------------
                                                 60,580              98,053
---------------------------------------------------------------------------
Current assets                                                             
Other current assets                                132                 647
Inventories                                         236               3,328
Other receivables                                   109                 105
Cash and cash equivalents                        43,253              49,085
---------------------------------------------------------------------------
                                                 43,730              53,165
---------------------------------------------------------------------------
Assets associated with discontinued                                        
 operations                                           5                  21
---------------------------------------------------------------------------
Total assets                                    104,315             151,239
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                                           
Liabilities                                                                
Current liabilities                                                        
Accounts payable and accrued                                               
 expenses                                         2,537              23,245
Current tax liabilities                              63                 122
---------------------------------------------------------------------------
                                                  2,600              23,367
Liabilities associated with                                                
 discontinued operations                          1,974               2,613
---------------------------------------------------------------------------
Total liabilities                                 4,574              25,980
---------------------------------------------------------------------------
Equity                                                                     
Share capital                                   534,068             533,349
Share based payments reserve                      3,836               3,828
Cumulative translation adjustment                   (14)                (18)
Accumulated deficit                            (438,149)           (411,900)
---------------------------------------------------------------------------
Total equity                                     99,741             125,259
---------------------------------------------------------------------------
Total liabilities and equity                    104,315             151,239
---------------------------------------------------------------------------
---------------------------------------------------------------------------

The cash position of the Company decreased by $5.8 million during first nine months of 2012. The decrease in the cash position was due to $59.3 in cash outflows, which was mainly comprised of cash payments to the KRG of $25 million in relinquishment fees, payments against accounts payable and accrued expenses by $20.7 million and $14.1 million in spending related to the Atrush and Taza Block petroleum properties, offset by cash inflows of $53.5 million related to the sale of the Taza Block PSC interest and other assets.


Condensed Interim Consolidated Cash Flow Statement
(Unaudited, expressed in thousands of United States Dollars)

                                           Three months         Nine months
                                                  ended               ended
                                           September 30,       September 30,
                                         2012      2011      2012      2011
---------------------------------------------------------------------------
Operating activities                                                       
Net loss for the period from                                               
 continuing operations                    (98)   (2,764)  (26,187)   (3,156)
Adjustments for:                                                           
  Gain on sale of asset                (1,100)        -    (1,100)        -
  Interest income                          (1)     (147)      (26)     (424)
  Interest expense on equity based                                         
   finance fee                            359         -       719         -
  Foreign exchange loss / (gain)           34     2,572      (357)    1,320
  Depreciation and amortisation                                            
   expense                                 46        58       143       166
  Income tax                               13       (98)      (59)       (7)
  Impairment (recovery) / loss            138         -      (559)        -
  Share based payments expense              2        70         8       243
  Share of loss of associates              97       173       209       282
  Capitalized expenses                      -      (473)        -    (1,070)
  Changes in trade and other                                               
   receivables                            542        14        (4)      (22)
  Changes in other current assets          75       489       515      (115)
  Changes in inventories                 (196)     (210)    2,509      (770)
  Changes in accounts payable and                                          
   accrued expenses                      (991)    8,136   (20,708)   15,863
Cash used in discontinued                                                  
 operations                              (131)     (104)     (685)     (458)
---------------------------------------------------------------------------
Net cash inflows from / (outflows                                          
 to) operating activities              (1,211)    7,716   (45,582)   11,852
---------------------------------------------------------------------------
                                                                           
Investing activities                                                       
Net proceeds on sale of intangible                                         
 assets                                52,671         -    52,671         -
Purchases of intangible assets         (3,540)  (46,222)   (7,721)  (74,549)
Net proceeds on sale of property,                                          
 plant and equipment                      595         -       804         -
Purchases of property, plant and                                           
 equipment                               (134)       (9)     (595)     (611)
Investment in associate                (1,105)   (2,345)   (5,796)  (17,788)
Interest received on cash deposits          1       147        26       424
---------------------------------------------------------------------------
Net cash inflows from / (outflows                                          
 to) investing activities              48,488   (48,429)   39,389   (92,524)
---------------------------------------------------------------------------
                                                                           
Financing activities                                                       
Net proceeds (costs) on issuance of                                        
 shares                                     -        (4)        -    51,917
Repayment of borrowings               (10,000)        -         -         -
---------------------------------------------------------------------------
Net cash inflows from / (outflows                                          
 to) financing activities             (10,000)       (4)        -    51,917
---------------------------------------------------------------------------
                                                                           
Effect of exchange rate changes on                                         
 cash and cash equivalents                (13)   (2,633)      361    (1,312)
---------------------------------------------------------------------------
                                                                           
Change in cash and cash equivalents    37,264   (43,350)   (5,832)  (30,067)
Cash and cash equivalents,                                                 
 beginning of the period                5,989    71,967    49,085    58,684
---------------------------------------------------------------------------
Cash and cash equivalents, end of                                          
 the period                            43,253    28,617    43,253    28,617
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Outlook

The outlook to the end of the year 2013 is as follows:

Atrush Block

The Contractor is currently in the process of preparing a Field Development Plan which will be submitted to the Atrush Block Management Committee within 180 days following the Declaration of Commercial Discovery which was submitted on November 7, 2012.

The Atrush-3 appraisal well is expected to be spudded before the end of the current year. Civil engineering work is nearing completion which will provide road access to the Atrush-3 well location which is approximately 5km east of the Atrush-2 well. The drilling rig will be moved from the Atrush-1 well site to the Atrush-3 location.

The Atrush-4 and Atrush-5 appraisal wells are planned to be spudded during the year 2013. Planning for these wells is currently underway.

The 3D seismic acquisition program which covered the entire Atrush block and adjoining Swara Tika discovery was completed on August 11, 2012. Final processing of the complete 3D seismic survey is expected in the first quarter of 2013.

The tendering process has been completed for a contract to install and operate extended test facility ("ETF") with a maximum production capacity of 5,000 bopd. The ETF is expected to be commissioned in the first quarter of 2013 with production coming from the Atrush-1 well. The Atrush-2 well will be used to monitor reservoirs. An additional ETF is planned to be installed on the Atrush-3 well in the second half of the year 2013. Work on an enhanced ETF with production capacities from 10,000 bopd expandable to 30,000 bopd is planned to commence in the second half of the year 2013.

New Ventures

As part of its normal business the Company continues to evaluate new opportunities in the region.

About ShaMaran

ShaMaran Petroleum Corp. is a Kurdistan focused oil development and exploration vehicle with an indirect interest in the Atrush Block located in the region. This project is nearby and on trend with existing fields and recent discoveries.

Kurdistan lies within the northern extension of the Zagros Folded Belt. The area is highly underexplored and is currently undergoing a significant exploration and development campaign by over 40 mid to large size international oil companies.

ShaMaran Petroleum is a Canadian oil and gas company listed on the TSX Venture Exchange and the NASDAQ OMX First North Exchange (Stockholm) under the symbol "SNM".

Forward-Looking Statements

This press release 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 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. 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.

On behalf of the Board,

Pradeep Kabra, President and CEO

ShaMaran Petroleum's Certified Advisor on NASDAQ OMX First North is Pareto Ohman AB.

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.

Contacts:
ShaMaran Petroleum Corp.
Keith Hill
Chairman
(604) 806-3583
[email protected]

ShaMaran Petroleum Corp.
Pradeep Kabra
President and CEO
0041 22 560 8605
[email protected]

ShaMaran Petroleum Corp.
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)
[email protected]
www.shamaranpetroleum.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.