ShaMaran Petroleum Ltd. · OSL:SNM

ShaMaran Petroleum — Investor Presentation (January 2019)

21 slides from ShaMaran Petroleum's investor presentation, January 2019

  1. Slide 1: ShaMaran Petroleum Corp.

    ShaMaran Petroleum Corp. A growing, Kurdistan focused oil producer January 2019 ShaMaranShaMaran – A Lundin –Group A Lundin Group Company Company

  2. Slide 2: ShaMaran in a nutshell

    ShaMaran in a nutshell Net 2018 8,300 Large production asset in the Atrush oil field in Kurdistan production bopd capacity* Highly accretive acquisition of half of Marathon’s 15% working interest in Atrush 28.3 Net 1/1/2018 MMbbl 2P oil reserves* Significant cash flow from production 82 Net 2C oil M

  3. Slide 3: ShaMaran is a Kurdistan focused oil company

    ShaMaran is a Kurdistan focused oil company  ShaMaran is an E&P company active in the Atrush partnership post acquisition Kurdistan region with 20.1% direct interest in the Atrush oil field KRG 25.0% TAQA  ShaMaran agreed to acquire an additional (Operator) 7.5% working interest from Marathon 47.4

  4. Slide 4: ShaMaran to acquire additional 7.5% in Atrush

    ShaMaran to acquire additional 7.5% in Atrush  ShaMaran currently has a 20.1% working interest in Atrush  ShaMaran and Taqa have agreed to acquire from Marathon, with effect from Jan 1, 2018, its 15% working interest in Atrush • ShaMaran to acquire all shares of MOKDV - Marathon’s Dutch subsidiary

  5. Slide 5: Highly accretive acquisition for ShaMaran

    Highly accretive acquisition for ShaMaran  Atrush interest increased by 37.3% • Acquisition at 2 times EBITDA • Includes 7.7 MMbbl of 2P reserves valued at an NPV10 of USD 82m based on McDaniel reserves report at 31 Dec 2017 and 22 MMbbl of 2C resources • Includes USD 10.7m in cost loans provided t

  6. Slide 6: Kurdistan is a world class oil province

    Kurdistan is a world class oil province  Kurdistan’s oil industry is at a relatively early stage of development  Significant reserves and resources  Political situation is stabilizing  Existing upgraded 1 million barrels per day pipeline export route to the Turkish Mediterranean port of Ceyhan 

  7. Slide 7: Atrush is a large, world class oil field

    Atrush is a large, world class oil field  Atrush block was awarded in 2007 and Atrush oil field facts (gross)1 ShaMaran acquired interest in 2010 • Atrush field discovered 2011 MMbbl 1P/C 2P/C 3P/C • FDP approved October 2013 Oil reserves 37.4 102.7 165.9 • First production July 2017 Oil contingent

  8. Slide 8: Operational Update

    Operational Update  First production in July 2017 • Phase I facilities and pipeline project completed  10 wells drilled to date, 11th well drilling • Five wells permanently in production • CK-9 water disposal well drilled according to plan and ready for water injection • AT-3 well worked over and

  9. Slide 9: The Atrush field – Facilities and well locations

    The Atrush field – Facilities and well locations CK-6, AT-3 well location Extended Phase 1 facilities heavy oil test AT-2 well location CK-7 and CK-10 well location AT-4, CK-5, CK-8 CK-9 and well location CK-11 location ShaMaran – A Lundin Group Company 9

  10. Slide 10: Production is growing

    Production is growing Frequent Flushed pipeline stripper CK-10 outages column ESP failure Back-produced salt plugs Shut down to facilities tie-in CK-7, CK-10 Facility shut down to address production constraints  Average 2018 production ~22,200 bopd ShaMaran – A Lundin Group Company 10

  11. Slide 11: Ample room for further production growth

    Ample room for further production growth Current capacity Debottlenecking plus Further phases ~100,000 30,000 bopd potential for EPF’s to be defined ~50,000 bopd ~100,000 bopd  Identifying low cost facility modifications to address bottlenecks  Second production  State of the art and fully facili

  12. Slide 12: Strong focus on short term production growth

    Strong focus on short term production growth  Stress test 30,000 bopd facilities and identify debottlenecking opportunities to further increase capacity  Optimise production from installed extended well test facilities • Expect heavy oil production to start in February 2019 from AT-3  Identifying

  13. Slide 13: 2019 Work Program

    2019 Work Program  2019 capex 2019 • ~USD 33m net to Drill and Complete CK- ShaMaran 11 (27.6% working Drill and Complete Pad interest Wells E Well assumed) Drill and Complete Pad C Well Workover CK- Workover AT- 6 4 CK-9 Water Reinjection online Install PF1 Desalter Upgrade Facilities PF1 Desalter

  14. Slide 14: Strong 2018 operational cash flow

    Strong 2018 operational cash flow USD mln Cash from operating activities after G&A and other cash expenses 50.0 Receivable/payable and working capital adjustments (3.8) Cash in from operations 46.2 KRG loans, interest and KRG carry receivables collected 20.6 Atrush Capex (12.2) Last payment for pipe

  15. Slide 15: Cost oil and KRG loans & receivables fuel cash flow

    Cost oil and KRG loans & receivables fuel cash flow Pro-forma* KRG loans, receivables and cost oil as of December 31, 2018 USDm *) amounts in this table reflect a 27.6% effective interest in Atrush, which represents ShaMaran’s existing 20.1% interest plus an additional 7.5% interest attributable to

  16. Slide 16: Strategy

    Strategy  Focus on cash flow and buildup of cash reserves • Robust 2019 cash flow: • Strong cash flow at current oil prices • KRG loan repayments to continue throughout the year  Focus on near term production growth • Near term investments in debottlenecking 30,000 bopd facilities • Optimise produ

  17. Slide 17: Cautionary statements

    Cautionary statements This document 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

  18. Slide 18: Appendix

    Appendix ShaMaran – A Lundin Group Company 18

  19. Slide 19: ShaMaran is a Lundin Group company

    ShaMaran is a Lundin Group company Combined value ~ USD 21 billion ShaMaran – A Lundin Group Company 19

  20. Slide 20: Management and Board of Directors

    Management and Board of Directors Keith C. Hill – Chairman and Director Mike Ebsary – Director Over 30 years experience in the oil industry including Over 30 years of experience in the oil industry. international new venture management and senior Previous CEO of Oryx Petroleum and CFO of Addax explo

  21. Slide 21: Corporate profile

    Corporate profile  Share capital  Major shareholders • Shares issued and outstanding 2,158,631,534 • Lundin family trusts 22.4%  Market capitalization • VR Capital 3.7% • CAD 194 million (@ 8 January 2019) • Directors/Management 0.3%  Net debt*  Trading information • USD 98 million (@ 31 Decemb

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