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ShaMaran Petroleum Finalises Agreement
With Iraq's Kurdistan Regional Government KRG
19.1.2012 |
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The Atrush 1 exploration well in the Atrush Block
and Gas Exploration Area in Iraqi Kurdistan. Photo:
Shamaran Petroleum
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January 19, 2012
VANCOUVER, Canada, — ShaMaran
Petroleum has signed a final binding agreement with
the Kurdistan Regional Government ("KRG") to
relinquish to the KRG the 60% working interests
currently held in each of the Arbat and Pulkhana
Production Sharing Contracts ("PSC").
Under the terms of the agreement the PSC for each of
the Pulkhana and Arbat blocks is terminated whereby
ShaMaran's interests in both PSCs are relinquished.
The Company has agreed to a payment to the KRG of
consideration valued at $US25 million after which
the Company will be relieved of all further
obligations under the PSCs.
This asset realignment will relieve the Company from
the remaining work program obligations of Pulkhana
and Arbat block, and allow ShaMaran to focus its
activities and resources on the Atrush and Taza
Blocks, which the Company considers to be their most
prospective blocks.
The Company, as part of General Exploration Partners
Inc ("GEP"), and its partner, Marathon Petroleum KDV
B.V., are currently carrying out an appraisal
program in the Atrush block in which a major
discovery was announced in April 2011. This program
consists of a 3D seismic survey which is underway
and expected to be completed in the first quarter.
The partnership is also planning to drill an
appraisal well in the second quarter of 2012
followed by the installation of an early production
system. ShaMaran,www.ekurd.net
through its wholly-owned subsidiary, ShaMaran
Ventures B.V., has a 33.5% stake in GEP, which is a
party to the Atrush Block Production Sharing
Contract and currently holds an 80% interest.
Marathon Petroleum KDV B.V., a wholly-owned
subsidiary of Marathon Oil Corporation, holds a 20%
interest in the block.
The Company in coordination with Oil Search Iraq
Limited ("OSIL") is also planning to drill its first
well in the Taza Block (formerly Block K42) in the
second quarter of 2012. ShaMaran holds a 20% working
interest in the PSC. OSIL is the operator with a 60%
working interest in the PSC. The Kurdistan Regional
Government of Iraq ("KRG") holds a 20% working
interest in the PSC with costs carried by ShaMaran
and OSIL.
ShaMaran President and CEO, Pradeep Kabra,
commented, "This agreement allows ShaMaran to move
forward in Kurdistan on its highly prospective
remaining projects by removing the high financial
obligations of the Pulkhana and Arbat blocks which
were not as prospective as anticipated. We still
consider Kurdistan to be one of the most attractive
regions in the world to explore and develop oil
projects and will continue to look for growth
opportunities in the country."
About ShaMaran
ShaMaran Petroleum Corp. is a Kurdistan-focused oil
development and exploration vehicle with two ongoing
projects in the region: the Atrush oil discovery,
and the Taza exploration blocks. These projects are
nearby and on trend to 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 30 mid
to large size international oil companies.
ShaMaran Petroleum is a Canadian oil and gas company
listed on the TSX Venture Exchange under the symbol
"SNM" as well as NASDAQ OMX First North under the
symbol "SNM".
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