Source: ShaMaran Petroleum.
  • ShaMaran (SNM) has announced 2022 financial results, which are its best since its inception
  • The results include record annual oil revenue of US$176.6 million and a 210-per-cent YoY increase in EBITDAX to US$140 million
  • The company anticipates continued strong operating cash flow if oil prices remain steady in 2023
  • ShaMaran is a Kurdistan-based oil development and exploration company
  • ShaMaran Petroleum (SNM) is unchanged, trading at $0.085 per share

ShaMaran (SNM) has announced 2022 financial results, which are its best since inception.

Financial highlights:

The results include record annual oil revenue and a 210-per-cent YoY increase in EBITDAX.

ShaMaran merged its bonds into one single US$300 million bond with interest fully paid to January 30, 2023. It currently owns in excess of 10 per cent of the 2025 bond.

It has also received payments for oil sales through August 2022 for both Atrush and Sarsang and expects a full recovery from the Kurdistan Regional Government.

Operational highlights:

  • Atrush achieved cumulative 2022 production of 67 MMbbls, with Sarsang coming in at 55 MMbbls
  • The company grew its gross 2P reserves by 225 per cent from 30.4 MMbbls to 68.3 MMbbls, resulting in a record-high 2P net reserves replacement ratio of 950 per cent and an extension of its 2P Reserves Life Index to nearly 12 years
  • Gross average production for Q4 2022 was 75,697 bopd, resulting in 16,761 bopd net to ShaMaran
  • FY 2022 lifting costs per barrel were US$5.47, up from US$5.12 in 2021 due to higher diesel prices
  • ShaMaran invested US$22.2 million through FY 2022 in Atrush net capital expenditures

Corporate highlights:

On September 14, 2022, the company announced the closing of its Sarsang acquisition, further diversifying its assets with stakes in three world-class producing oil fields in Kurdistan – Atrush, Swara Tika and East Swara Tika – with improved oil qualities and complementary production horizons.

2023 guidance (Atrush and Sarsang blocks)

ShaMaran anticipates continued strong operating cash flow if oil prices remain steady in 2023.

Net average daily production15 kbopd – 18 kbopd
Net capital expendituresUS$64 million
Net operating costsUS$41 million
Average lifting costs per barrelUS$5.40 – US$6.60

“2022 represents the best financial performance in the company’s history on all key metrics, with growth in sales, EBITDAX and cash generation reflecting the strength of our business in the current oil price environment,” stated Dr. Adel Chaouch, ShaMaran’s President and CEO.

“The transformation of the business through the Sarsang acquisition is reflected in the 2022 Q4 results, and we are very excited about the future of the company as 2023 will better demonstrate the true potential of our enlarged business,” he added. “The cash generation and deleveraging of our balance sheet is expected to continue at a sustained pace, ensuring a strong financial foundation.”

ShaMaran is a Kurdistan-based oil development and exploration company. It holds a 27.6 per cent working interest in the Atrush Block and an 18 per cent interest (22.5 per cent paying interest) in the Sarsang Block.

ShaMaran Petroleum (SNM) is unchanged, trading at $0.085 per share as of 10:44 am EST.


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