ShaMaran: Atrush-3 Well Confirms Extension of Field Area 6.5km to the East
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/26/13 -- ShaMaran
Petroleum Corp. ("ShaMaran" or the "Corporation") (TSX
VENTURESNM)(OMX:SNM) is pleased to report the results of the Atrush-3
appraisal well ("AT-3") drilled in the Kurdistan Region of Iraq.
The AT-3 well was spudded on 23rd March 2013 using the DQE31 drilling
rig and was drilled to a total depth of 1,806m. The well is situated
approximately 6.5km east of the AT-2 well and approximately 9.6km
east of the AT-1 discovery well.
AT-3 was specifically designed as a stepout to the east of the
existing wells and to reduce the uncertainty on the depth and nature
of the Oil Water Contact ("OWC") / Free Water Level ("FWL") in the
"BSAM" reservoir (the Jurassic Barsarin-Sargelu-Alan-Mus formations).
The well matched the pre-drill expectations by finding the main
target "BSAM" reservoir entirely oil-bearing and the Jurassic Butmah
reservoir in the water leg. The Atrush field is undergoing an
appraisal drilling program providing valuable information such as
oil/water contact definition, oil gravity/viscosity variations,
extent of quality reservoir, permeability and porosity data, etc. All
this data is important information for development planning purposes
and for future resource updates.
A successful coring campaign was completed on AT-3 recovering seven
cores totalling more than 72 metres from the "BSAM" section. Three
drill stem tests ("DST") were conducted with the results confirming
the extension of the field area 6.5 km to the east.
-- DST1 was conducted as a short test over an 18m interval in the uppermost
porosity section of the Butmah formation. Using an ESP the well was
produced at approximately 1500 barrels of water per day with reported
viscous oil cut of 1%-6%. The test indicates that the tested interval is
in close proximity to the deepest calculated FWL from the AT-1 and AT-2
-- DST2 commenced on 29th July and was conducted over a 30m interval across
the Lower Alan & Mus formations within the "BSAM" reservoir. The test
produced up to 1500 barrels of oil per day (surface oil measurements
ranged between 10 degrees & 17 degrees API) with no water.
-- DST3 was performed over an 18m interval of the Sargelu formation. The
well was produced at rates up to 600 bopd (surface oil measurements
ranged between 12 degrees & 14 degrees API).
All rates are rough estimates only due to an inability (for technical
reasons) to route fluids through the test separator. Bottomhole
samples from the DSTs will undergo PVT analysis over the coming
weeks. AT-3 has been suspended as a potential future producer.
Other activity includes work on the Atrush Block Field Development
Plan ("FDP") which culminated with its submission for approval to the
KRG on May 6, 2013, in accordance with the terms of the PSC. The FDP
was presented in detail to the Ministry of Natural Resources ("MNR")
in June 2013 and discussions are progressing with the MNR towards
obtaining necessary approval for the plan.
In June 2013, a successful interference test was successfully
completed between AT-1 and AT-2 which has provided valuable reservoir
information. The wells, which are 3.1km apart, confirmed pressure
communication and multi Darcy horizontal permeability through the
fracture system in the BSAM reservoir.
ShaMaran President and CEO Pradeep Kabra commented, "The results of
the AT-3 well are important for the future development of the Atrush
Field. Our objective is to put the field into production as early as
possible to take advantage of the improving political and economic
conditions in the region. We look forward to the results of the
Atrush-4 well (targeting the undrilled updip area of the field) which
is due to spud in the next few weeks"
The Atrush Block is operated by TAQA Atrush B.V., a subsidiary of Abu
Dhabi National Energy Company PJSC which holds a 39.9% working
interest in the Block. ShaMaran Petroleum Corp. holds a 20.1% working
interest through its wholly owned subsidiary, ShaMaran Ventures BV
(100% owner of General Exploration Partners, Inc.). Marathon Oil KDV
B.V., a wholly owned subsidiary of Marathon Oil Corporation (NYSE:
MRO), holds a 15% interest in the block. Subsequent to their back-in
the Government of the Kurdistan Region of Iraq holds a 25% working
ShaMaran Petroleum Corp. is a Kurdistan focused oil development and
exploration vehicle. 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".
On behalf of the Board,
Pradeep Kabra, President and CEO
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. Test results are not
necessarily indicative of long-term performance or of ultimate
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.
ShaMaran Petroleum's Certified Advisor on NASDAQ OMX First North is
Pareto Ohman AB.
ShaMaran Petroleum Corp.
ShaMaran Petroleum Corp.
President and CEO
0041 22 560 8605
ShaMaran Petroleum Corp.
(604) 689-4250 (FAX)
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