Welcome!

Microsoft Cloud Authors: Janakiram MSV, Yeshim Deniz, David H Deans, Andreas Grabner, Stackify Blog

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 mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
SYS-CON Events announced today that Suzuki Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Suzuki Inc. is a semiconductor-related business, including sales of consuming parts, parts repair, and maintenance for semiconductor manufacturing machines, etc. It is also a health care business providing experimental research for...
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, will discuss how data centers of the future will be managed, how th...
SYS-CON Events announced today that Enroute Lab will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enroute Lab is an industrial design, research and development company of unmanned robotic vehicle system. For more information, please visit http://elab.co.jp/.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a mu...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
SYS-CON Events announced today that Fusic will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Fusic Co. provides mocks as virtual IoT devices. You can customize mocks, and get any amount of data at any time in your test. For more information, visit https://fusic.co.jp/english/.
SYS-CON Events announced today that Keisoku Research Consultant Co. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Keisoku Research Consultant, Co. offers research and consulting in a wide range of civil engineering-related fields from information construction to preservation of cultural properties. For more information, vi...