VANCOUVER, BC,
April 25,
2022 /CNW/ - ShaMaran Petroleum Corp. ("ShaMaran"
or the "Company") (TSXV: SNM) (Nasdaq First North Growth Market
(Sweden): SNM) today released its
financial and operating results and related management's discussion
and analysis (MD&A) for the three months and year ended
December 31, 20211. View
PDF version.
Dr. Adel Chaouch, President and
Chief Executive Officer of ShaMaran, commented "2021 has been a
transformational year for ShaMaran. The Company generated the
highest annual oil sales revenues in its history at $102.3 million. ShaMaran's 2021 EBITAX was more
than triple that of 2020 and last year demonstrates the Company's
cash generating ability with cashflow from operations increasing by
almost 5 times versus the year before. Atrush continues to
prove itself as a world class field with cumulative production now
in excess of 54MM barrels and a continuation of full replacement of
2P reserves year on year.
We are entering 2022 in a strong financial position and are
excited about the growth opportunities that lie ahead for Shamaran.
The Sarsang acquisition, expected to close in the coming months,
will double the size of the Company and we continue to actively
look at other market opportunities to further develop ShaMaran. We
recently announced a one-of-its-kind climate action corporate
sponsorship with the Hasar Organization for Earth Sciences in
Kurdistan. This initiative
represents a key early step in ShaMaran's strategy towards
significantly reducing its net carbon footprint."
2021 Financial
Highlights
|
Three months ended
Dec 31
|
Year ended Dec
31
|
USD
Thousands
|
2021
|
2020
|
2021
|
2020
|
Revenue
|
27,439
|
14,081
|
102,323
|
56,673
|
Gross margin on oil
sales
|
12,662
|
10,253
|
49,889
|
7,106
|
Net result
|
4,061
|
(1,785)
|
13,383
|
(144,425)
|
Cash flow from
operations
|
23,336
|
5,350
|
63,903
|
12,860
|
EBITDAX
|
18,456
|
6,614
|
66,375
|
20,052
|
- The fourth quarter generated oil sales revenue of $27.4 million and during 2021 the Company
generated the highest-ever annual oil sales revenues at
$102.3 million;
- A strong EBITDAX of $18.5 million
for the fourth quarter and $66.4
million for the full year 2021, 3.3 times the EBITDAX of
2020;
- Consistent oil sales and entitlement payments from the KRG with
75% of the KRG outstanding receivables paid during 2021;
- 2021 and fourth quarter operating cash flow of $63.9 million and $12.9
million respectively; and
- Reduction of the principal amount of the Company's 2023 Bond by
$15 million during 2021 with a
further $3 million of the 2023 Bond
bought back by the company at 2021 year end.
___________________________
|
1 All
currency amounts indicated as "$" in this news release are
expressed in United States Dollars.
|
2021 Atrush Operational
Highlights
- Cumulative production of more than 54 million barrels of oil
achieved by year end 2021;
- Atrush Property gross 2P reserves2 had a 102%
reserves replacement ratio increasing to 110.2 MMbbls as at
December 31, 2021 from 109.9 in 2020,
and Company gross 2P reserves increasing from 30.3 MMbbls to 30.4
MMbbls;
- Full year 2021 average production of approximately 38,600 bopd,
was very close to the 2021 guidance despite a longer than
anticipated routine maintenance shutdown period in September 2021;
- Full year 2021 lifting costs per barrel of $5.12 in line with 2021 guidance; and
- Full year 2021 capital expenditure of $52.3 million ($14.2
million net to ShaMaran) in line with 2021 guidance.
Sarsang Acquisition
- As announced on July 30, 2021,
the Company has successfully issued and settled $111.5 million principal amount of the
$300 million 12% senior unsecured
bond 2021/2025 (the "2025 Bond"), which was issued at 98.5% of
nominal value for gross cash proceeds to the Company of
$109.8 million. This portion of the
2025 Bond and the $188.5 million
balance will be issued to refinance existing indebtedness of the
Company in connection with, and conditional upon completion of, the
Company's acquisition of TotalEnergies' affiliate that holds an 18%
non-operated participating interest in the Sarsang Block; and
- The Company is currently finalizing the closing documentation
for the completion of the Sarsang Acquisition and completion is
expected in the first half of 2022.
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.
CORPORATE UPDATE
The Company is pleased to announce that the Record Date of
May 6, 2022 has been set for the
Annual General Meeting of Shareholders to be held on June 23, 2022.
____________________________
|
2 Reserves
estimates, contingent resource estimates and estimates of future
net revenue in respect of ShaMaran's oil and gas assets in the
Atrush Block are effective as at December 31, 2021, and are
included in the report prepared by McDaniel & Associates
Consultants Ltd., an independent qualified reserves evaluator, in
accordance with National Instrument 51-101 – Standards of
Disclosure for Oil and Gas Activities (NI 51-101) and the
Canadian Oil and Gas Evaluation Handbook (the COGE Handbook) and
using McDaniel's January 1, 2022 price forecasts. Certain
abbreviations and technical terms used in this MD&A are defined
or described under the heading "Other Supplementary
Information".
|
OTHER
This information is information that ShaMaran is obliged to make
public pursuant to the EU Market Abuse Regulation. The information
was submitted for publication, through the agency of the contact
persons set out below, on April 25,
2022 at 5:30 p.m. Eastern
Time. Arctic Securities AS (Swedish branch) is the
Company's Certified Advisor on Nasdaq First North Growth Market
(Sweden), +46 844 68 61 00,
certifiedadviser@arctic.com.
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.
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.
The Covid-19 virus and the restrictions and disruptions
related to it have had a drastic adverse effect on the world demand
for, and prices of, oil and gas as well as the market price of the
shares of oil and gas companies generally, including the Company's
common shares. There can be no assurance that these adverse
effects will not continue or that commodity prices will not
decrease or remain volatile in the future. These factors are beyond
the control of ShaMaran and it is difficult to assess how these,
and other factors, will continue to affect the Company and the
market price of ShaMaran's common shares. In light of the current
situation, as at the date of this news release, the Company
continues to review and assess its business plans and assumptions
regarding the business environment, as well as its estimates of
future production, cash flows, operating costs, and capital
expenditures.
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.
ABOUT SHAMARAN
ShaMaran is a Kurdistan focused
oil development and exploration company which holds a 27.6% working
interest, through its wholly-owned subsidiary General Exploration
Partners, Inc., in the Atrush Block and, upon successful closing of
the Sarsang Acquisition, will then also hold an 18% interest
through its then wholly-owned subsidiary TEPKRI Sarsang A/S in the
Sarsang Block.
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".
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SOURCE ShaMaran Petroleum Corp.