Shamaran Announces Year-End 2013 Reserves and Resources

Shamaran Announces Year-End 2013 Reserves and Resources 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/13/14 --  
ShaMaran Petroleum Corp. (TSX VENTURE: SNM)(OMX: SNM) ("ShaMaran" or
the "Company") is pleased to report initial recognition of reserves
as well as updates to estimated contingent resources and prospective
resources for the Atrush block as of December 31, 2013. The reserves
and resources estimates were provided by McDaniel & Associates
Consultants Ltd. ("McDaniel"), the Company's independent qualified
resources evaluator, and were prepared in accordance with standards
set out in the Canadian National Instrument NI 51-101 and Canadian
Oil and Gas Evaluation Handbook (COGEH).  
McDaniel estimates for reserves and resources have taken into account
the results of the Atrush-3 well, the latest remapping based on 3D
seismic and the commitment to the first phase of Atrush development
as defined by the KRG approved field development plan.  


 
 
RESERVES SUMMARY - ATRUSH PHASE 1 DEVELOPMENT                              
AS OF DECEMBER 31, 2013                                                    
MBBL, (1)(2)(3)                                                            
 
                                               Property   Company   Company
Reserves Category:                                Gross Gross (2)   Net (3)
                                             ------------------------------
Light/Medium Oil (Mbbl)                                                    
  Total Proved Reserves (1P)                     30,572     6,145     4,116
  Probable Reserves                              27,609     5,549     2,283
  Proved + Probable Reserves (2P)                58,182    11,694     6,399
  Possible Reserves                              52,543    10,561     2,904
  Proved + Probable + Possible Reserves (3P)    110,724    22,256     9,304
 
(1) Reserves are based on the KRG-approved Phase 1 Atrush development      
comprising a 30,000 bpd facility and 3 producers (AT-2, AT-4 and AT-5).    
(2) Company gross reserves are based on Company working interest share of  
the property gross reserves.                                               
(3) Company net reserves are based on Company share of total cost and      
profit revenues and the income tax paid
 on behalf of company.              

Possible reserves are those additional reserves that are less certain
to be recovered than probable reserves. There is a 10% probability
that the quantities actually recovered will equal or exceed the sum
of proved plus probable plus possible reserves. The reserves were
estimated using forecast prices and costs. The sales oil price was
based on the McDaniel January 1, 2014 price forecast for Brent crude
oil with a discount of 40 percent in 2014 and 2015, 35 percent in
2016, 30 percent in 2017 and 25 percent in 2018 onwards. The initial
discount to Brent was based on published sales prices in the
Kurdistan Region of Iraq from 2013 and equates to an oil price of US$
63.00 per barrel in 2014. Costs were escalated at 2 percent per
annum. Oil pricing is uncertain and any eventual announcement of
sales and pricing of exported Kurdish crude during 2014 together with
the Kurdish export pipeline becoming fully operational will impact on
future price scenarios. 
The updated estimates of contingent resources for the Atrush block
are as follows: 


 
 
CONTINGENT RESOURCES SUMMARY - ATRUSH JURASSIC OIL DISCOVERY(i)            
AS OF DECEMBER 31, 2013                                                    
(1)(2)(3)(4)                                                               
(i) Barsarin, Sargelu, Alan, Mus ("BSAM"), Adaiyah & Butmah formations, in 
addition to the volumes assigned to Reserves.                              
 
                                                    Low      Best      High
                                              Estimate   Estimate  Estimate
                                                   (1C)      (2C)      (3C)
                                             ------------------------------
Property Gross                                                             
  Crude Oil (Mbbl)                              388,804   497,833   618,027
  Natural Gas (MMcf)                             90,289   122,585   165,857
  Total (Mboe) (6)                              403,852   518,263   645,669
Company Gross (5)                                                          
  Crude Oil (Mbbl)                               78,150   100,064   124,223
  Natural Gas (MMcf)                             18,148    24,640    33,337
  Total (Mboe) (6)                               81,174   104,171   129,780
 
(1) There is no certainty that it will be commercially viable or           
technically feasible to produce any portion of the resources.              
(2) These are unrisked contingent resources that do not take into account  
the chance of commerciality.                                               
(3) Contingent resources were estimated by subtracting the reserves from   
the total recoverable resources.                                           
(4) Total based on the probabilistic aggregation of zones within the Atrush
field and as such does not equal the arithmetic sum of the individual      
zones.                                                                     
(5) Company gross resources are based on Company working interest share of 
the property gross resources.                                              
(6) 6 Mcf is equivalent to 1 BOE.                                          

The resources included in the table above are classified as contingent
as the associated project(s) are dependent upon the results of the
Atrush Phase 1 development; this first phase of development should,
together with further appraisal drilling, narrow the uncertainty in
the contingent resources estimates and help determine if their
development is economic. 
The updated estimates of prospective resources for the Atrush block
are as follows: 


 
 
PROSPECTIVE RESOURCES SUMMARY - ATRUSH BLOCK(i)                            
AS OF DECEMBER 31, 2013                                                    
(1)(2)(3)                                                                  
(i) Comprising remaining potential in the Atrush hanging wall (Triassic),  
Atrush Footwall (Cretaceous, Jurassic & Triassic) and extension of the     
Swara Tika structure into the Atrush block (Jurassic & Triassic).          
 
                          Unrisked  Unrisked  Unrisked  Unrisked Risked (2)
                               Low      Best      Mean      High       Mean
                          Estimate  Estimate  Estimate  Estimate   Estimate
                        ---------------------------------------------------
Property Gross                                                             
  Crude Oil (Mbbl)         121,425   173,194   180,165   247,211     60,479
  Condensate (Mbbl)          8,741    28,327    36,173    72,890      6,766
  Natural Gas (MMcf)       141,366   258,352   289,988   481,107     61,445
  Total (Mboe) (5)         153,727   244,580   264,670   400,285     77,485
Company Gross (4)                                                          
  Crude Oil (Mbbl)          24,406    34,812    36,213    49,689     12,156
  Condensate (Mbbl)          1,757     5,694     7,271    14,651      1,360
  Natural Gas (MMcf)        28,415    51,929    58,288    96,702     12,350
  Total (Mboe) (5)          30,899    49,161    53,199    80,457     15,575
 
 
(1) There is no certainty that any portion of the prospective resources    
will be discovered. If discovered, there is no certainty that it will be   
commercially viable or technically feasible to produce any portion of the  
resources.                                                                 
(2) These are partially risked prospective resources that have been risked 
for chance of discovery, but have not been risked for chance of            
development.                                                               
(3) Total based on the probabilistic aggregation of undiscovered pools     
within the field/prospect.                                                 
(4) Company gross resources are based on Company working interest share of 
the property gross resources.                                              
(5) 6 Mcf is equivalent to 1 BOE.                                          

Additional information related to above noted reserve and resource
estimates, including net present value estimates, is included in Form
51-101F1, which may be viewed under the Company's profile on SEDAR at
www.sedar.com, or in the Company's Annual Information Form, which is
available both on SEDAR at www.sedar.com and on the Company's
web-site at www.shamaranpetroleum.com.  
Pradeep Kabra, President and CEO of ShaMaran commented, "We are
pleased to report the initial recognition of reserves relating to
ShaMaran's interest the Atrush field, and the progress being made
towards achieving 'First Oil' at Atrush in early 2015. At this early
stage of appraisal, the majority of contingent and prospective
resources are still to be assigned as reserves and we look forward to
continuing the appraisal and development work in 2014 to achieve the
full potential of the field." 
The Atrush Block is operated by the Abu Dhabi National Energy Company
PJSC ("TAQA") and is held 39.9% by TAQA, ShaMaran Petroleum Corp,
through its wholly owned subsidiary General Exploration Partners,
Inc. ("GEP") 20.1%, 15% Marathon Oil KDV B.V., (a wholly owned
subsidiary of Marathon Oil Corporation (NYSE: MRO)), and 25% by the
KRG. Atrush reserves and resource estimates presented represent
solely the view of ShaMaran and its experts. 
About ShaMaran 
ShaMaran Petroleum Corp. is a Kurdistan focused oil development and
exploration vehicle with a 20.1% working interest in the Atrush oil
discovery currently undergoing appraisal and development. 
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 
Forward looking information: 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. 
Reserves and resources: ShaMaran Petroleum Corp.'s reserve and
resource estimates are as at December 31, 2013, and have been
prepared and audited 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 ("COGE Handbook").").
Unless otherwise stated, all reserves estimates contained herein are
the aggregate of "proved reserves" and "probable reserves", together
also known as "2P reserves". 
Contingent resources: contingent resources are those quantities of
petroleum estimated, as of a given date, to be potentially
recoverable from known accumulations using established technology or
technology under development, but are not currently considered to be
commercially recoverable due to one or more contingencies.
Contingencies may include factors such as economic, legal,
environmental, political and regulatory matters or a lack of markets.
There is no certainty that it will be commercially viable for the
Company to produce any portion of the contingent resources. 
Prospective resources: prospective resources are those quantities of
petroleum estimated, as of a given date, to be potentially
recoverable from undiscovered accumulations by application of future
development projects. Prospective resources have both a chance of
discovery and a chance of development. There is no certainty that any
portion of the prospective resources will be discovered. If
discovered, there is no certainty that it will be commercially viable
to produce any portion of the prospective resources. Unless otherwise
stated, all prospective resource estimates contained herein are
reflecting a P50 prospective resource estimate. Risked prospective
resources reported herein are partially risked. They have been risked
for chance of discovery, but have not been risked for chance of
development. 
BOEs: BOEs may be misleading, particularly if used in isolation. A
BOE conversion ratio of 6 Mcf : 1 Bbl is based on an energy
equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead. 
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 Securities AB. 
Contacts:
ShaMaran Petroleum Corp.
Keith Hill
Chairman
(604) 806-3583
khill@namdo.com 
ShaMaran Petroleum Corp.
Pradeep Kabra
President and CEO
0041 22 560 8605
pradeep.kabra@shamaranpetroleum.com 
ShaMaran Petroleum Corp.
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)
sophias@namdo.com
www.shamaranpetroleum.com
 
 
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