CORPORATE PRESENTATION June 2013. A Lundin Group Company



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Transcription:

CORPORATE PRESENTATION June 2013

2 Kurdistan Maintaining Forward Momentum» Continued interest in the region. Erbil tagged as the Exploration Capital of the World. Kurdistan» Activity level in country remains high:» Super majors/iocs continue to enter the region» Steadily rising production capacity» KRG/Baghdad relationship remains challenging. Recent reports indicate progress on addressing the outstanding issues between KRG and Baghdad.» Significant developments in Turkish/KRG relations:» Major trading partner» Energy cooperation agreement» Direct exports of oil from KRG to Turkey by truck

3 Developing Regional & International Export Pipelines» Pipeline from Taq Taq to Khurmala expected to be operational by Q2 2013.» Khurmala to Dohuk pipeline under construction. Initial planned capacity 300,000 BOPD.» Khurmala to Fishkabur planned pipeline 1 MM BOPD by 2014.» Other pipeline infrastructure being planned including a Heavy Crude Oil Pipeline from northern fields. Source: KRG Oil & Gas Year Book 2012

4 Atrush: History of a World Class Oil Discovery» Atrush-1 Jurassic BSAM (Barsarin- Sargelu-Alan-Mus) discovery announced in April 2011. Shaikan» Atrush-2 extension of oil column to Jurassic Adaiyah & Butmah announced in September 2012.» Atrush-2 confirms excellent reservoir properties through high well deliverability (tested 42,200 bopd, facilities constrained) from BSAM.» Commercial Declaration made in November 2012:» KRG exercises back-in rights in March 2013.» Field Development Plan submitted to KRG May 2013. Block ShaMaran Working Interest Partners Atrush 20.1% TAQA 39.9% KRG 25%, Marathon 15% Operator Gross Acres Status TAQA 66,469 Appraisal / Development

5 Atrush - New Contractor Group» Abu Dhabi National Energy Company (TAQA) purchases the Aspect Energy International interest in GEP at end of 2012 and becomes the new Operator.» KRG backs-in for a 25% interest.» ShaMaran owns 100% of GEP.» Revised Atrush PSC holding (post KRG back-in):» TAQA 39.9 %» KRG 25%» GEP (ShaMaran) 20.1%» Marathon 15%

6 Atrush Discovery Reservoir Description» Significant oil column: over 800 meters at the crest of the structure.» A single reservoir comprised of stacked formations of Jurassic age: BSAM (Barsarin*, Sargelu*, Alan**, Mus**), Adaiyah** & Butmah**.» Massive & interbedded Type-I* & Type-II** carbonates.» Multi-Darcy reservoir permeability from an extensive fracture system provides well PIs in excess of 200 bbls/day per psi of drawdown.» Single zone productivity proven up to 15,000 bopd with ESP (facilities constrained).*** * Fracture porosity being the main storage medium ** Mix of fracture & matrix porosity. *** Test results are not necessarily indicative of long-term performance or of ultimate recovery.

7 Atrush Jurassic Oil Discovery Growing Resource Base Gross Contingent Resources* (Jurassic: Barsarin, Sargelu, Alan-Mus, Adaiyah, Butmah) - MMBOE Low (1C) Best (2C) Mean High (3C) YE 2011 275 465 513 813 YE 2012 404 627 668 982 Change YOY +46% +35% +21% +30% Discovered Petroleum Initially in place (PIIP, MMBOE) 1843 2686 2823 3999 Gross Prospective Resources* (Cretaceous & Triassic) MMBOE Low Best Mean High YE 2011 74 134 146 235 YE 2012 41 96 121 233 * YE 2012 McDaniel & Associates

8 Atrush: The Upside» Future delineation wells to test Prospective Resources: Cretaceous hanging wall above Jurassic reservoirs (oil shows in AT- 1/AT-3). Cretaceous footwall trap & BSAM in the footwall. Mapped deeper Triassic closures. Mapped extension of Swara Tika discovery into northern part of the Atrush block.

9 Atrush-3 Appraisal Well AT-3 Appraisal AT-1 Discovery AT-2 Appraisal (tested 42,000 bopd*)» AT-3 spud 25 th March 2013;» Stepout 9km east from AT-1 discovery well; 4.5km east of AT-2.» Vertical well designed to confirm structure (as mapped by 3D seismic).» Planned TD 1691m MD (250m into the Butmah formation).» After mechanical problems, Atrush-3ST1 sidetrack commenced.» Substantial coring and two well tests planned. *Test results are not necessarily indicative of long-term performance or of ultimate recovery

10 Atrush: Moving Into Development & Production 2012» Successful appraisal well: AT- 2 tested over 42,000 bopd on three tests from the BSAM.» AT-2 proved additional oil in Adaiyah & Butmah.» Acquired 3D seismic covering the entire block.» Significant resource potential confirmed. 35% increase in 2C resources post AT-2 results.» Declaration of Commerciality. 2013-2014*» Field Development Plan (FDP) submitted to KRG in May.» Approval and implementation of FDP.» Commence Phase 1 of development with a targeted t capacity of 30,000 bopd from 3 wells.» Continue appraisal activity it (drill AT-3). 2015*+» Commence full field development.» Increase capacity to 120,000 bopd through Phases 2-4, subject to results from Phase 1.» Drill potential Upside in deeper horizons. *Note: Detailed forward work program subject to KRG approval of FDP

11 Overall FDP Philosophy* West-Central Production Facility East Production Facility Atrush Block Proposed Terminal (Tanker Loading & Pipeline) 0 KM 4 Atrush field development will be implemented using a phased, modular, expandable, and value accretive process. Development will be initiated on the Central portion of the block. Subsequent phased development (subject to results from Phase 1) will target the eastern portion of the block, with expansion of both the western and eastern areas into the two existing production sites. Atrush Field initial planned capacity: Phase 1: 30,000 BOPD by 2014 Phases 2-4: 120,000 BOPD by 2017 *Subject to KRG approval

12 Atrush: Phase 1 Development Summary*» Modular facility capable of handling 30,000 BOPD. Map courtesy of operator TAQA» Crude processing and water treatment facilities.» Gas Sweetening (Amine unit) and gas power generation.» Provisions for future sulphur recovery, power generation, etc.» Oil Storage Terminal including provisions for trucking oil and tie-in to an export pipeline. *Subject to KRG approval

13 Outline Five-Year Plan* 2012 CENTRAL ATRUSH (western facility) W PF1 W PF2 W 1 : AT 1 W 2 : AT 2 AT 2 W 3 : AT 4 W 4 : AT 5 W 5 : AT 7 W 6 W 7 W 8 W 9 W 10 W 11 W 12 W 13 W 14 2013 2014 1 2 3 4 1 2 3 4 AT 4 AT 5 2015 1 2 3 4 *Subject to KRG approval of FDP AT 7 AT 9 2016 1 2 3 4 W 7 W 8 W 9 2017 1 2 3 4 W 10 W 11 W 12 W 13 W 14 EAST ATRUSH (eastern facility) E PF1 E PF2 E 1 : AT 3 AT 3 E 2 : AT 6 AT 6 E 3 : AT 8 E 4 E 5 E 6 E 7 E 8 E 9 E 10 Delineation Well Development Well Potential Development Well (dependent on production preformance) Construction to Commissioning of Production Facility 2013 2014 2015 2016 2017 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 AT 8 Far East Structure AT 10 E 5 E 6 E 7 E 8 E 9 E 10

14 The Lundin Group Combined Market Cap >$13.3 Billion

15 Lundin Group Track Record for Shareholder Return Company 2002 Recent Notes Tanganyika $0.55/share $13.5 million MC $31.50/share $1.9 billion MC Sold to Sinopec 2008 Valkyries $0.45/share $16.00/share Sold to Lundin Petroleum $4 million MC $750 million MC 2006 Red Back $1.35/share (2000) $45.4 million MC $30.50/share $8.98 billion MC Lundin Petroleum U $0.41/share $21.98/share U $101 million MC $6.9 billion MC + Enquest spin off US $1.5 billion MC BlackPearl $0.25/share $2.1 million MC Lundin Mining $0.175 (2003) $6.7 million MC $3.20/share $915 million MC $4.96/share $2.9 billion MC Sold to Kinross in 2010 Active Active Active

16 Profile & Contacts» Symbol TSX V & NASDAQ OMX First North: SNM» Share Capital Issued and outstanding: 810,983,860 shares Fully diluted 813,607,194 shares www.shamaranpetroleum.com» Directors and Management» Keith Hill, Chairman of the Board» Pradeep Kabra, Director, President and CEO» Brenden Johnstone, CFO» Mark Grace, Exploration Manager» J. Cameron Bailey, Director» Alex Schneiter, Director» Gary Guidry, Director» Brian Edgar, Director» ShaMaran Petroleum Corp» Investor Relations Pradeep Kabra, President & CEO Sophia Shane 5 Chemin de la Pallanterie Namdo Management Services 1222 Vésenaz Suite 2000 Geneva 885 West Georgia Street Switzerland Vancouver, BC, Canada V6C 3E8 Tel: +41 22 560 8600 Fax: +41 22 560 8601 Email: pradeep.kabra@shamaranpetroleum.com Tel: +1 604 689 7842 Fax: +1 604 689 4250 Email: sophias@namdo.com

17 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 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. References to regional and un-related company oil resources are sourced from industry and other websites. References to resource volume potential and potential flow rates are for general information only and are subject to confirmation. 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.