SYS-CON MEDIA Authors: Peter Silva, Kevin Jackson, Jessica Qiu, Dana Gardner, Dan Stolts

News Feed Item

ShaMaran 2013 Year End Financial and Operating Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/13/14 -- ShaMaran Petroleum Corp. ("ShaMaran" or the "Company") (TSX VENTURE: SNM)(OMX: SNM) is pleased to announce its financial and operating results for the year ended December 31, 2013. Unless otherwise stated all currency amounts indicated as "$" in this news release are expressed in thousands of United States dollars.

HIGHLIGHTS


--  The Company reports initial recognition of reserves (property gross of
    58 MMbo 2P) as well as updates to estimated contingent resources
    (property gross of 518 MMboe 2C) and prospective resources (property
    gross unrisked best estimate of 245 MMboe) as of December 31, 2013 for
    the Atrush block. The reserves and resources estimates were provided by
    McDaniel & Associates Consultants Ltd, the Company's independent
    qualified resources evaluator.
--  On November 13, 2013 General Exploration Partners, Inc. a fully owned
    subsidiary of the Company, issued $150 million of senior secured bonds.
    Net proceeds from the bond will be used to fund the Company's future
    capital expenditures related to the development of the Atrush Block.
--  On October 7, 2013 the Company announced that the Kurdistan Regional
    Government ("KRG") had approved Phase 1 of the Field Development Plan
    for the Atrush Block with an October 1, 2013 effective date for the
    commencement of the Development Period. The Atrush Block, located 85
    kilometres northwest of Erbil and operated by TAQA Atrush B.V. is
    planned to have an initial production capacity of 30,000 barrels of
    gross oil per day with first oil expected by early 2015.
--  The Atrush-4 Phase 1 development well spudded on October 20, 2013 and
    reached a total depth ("TD") of 2,916 meters on January 23, 2014.
    Atrush-4 is currently being tested.
--  The Atrush-3 appraisal well, located 6.5 kilometres to the east of the
    Atrush-2 appraisal well, was spudded on March 25, 2013 and reached TD of
    1,806 meters on June 23, 2013 within the potential Phase 2 development
    area. The well confirmed the extension of the oil bearing Jurassic age
    Barsarin-Sargelu-Alan-Mus reservoir and extended the Deepest Proven Oil
    column by approx. 180 meters. Drill stem tests were conducted with
    hydrocarbons recovered to surface but due to equipment limitations
    accurate flow rates were not determined. Atrush-3 is currently
    suspended.
--  On March 12, 2013 the Contractor entities to the Atrush Block Production
    Sharing Contract ("PSC") were notified by the KRG that it had exercised
    its option to acquire a 25% Government Interest in accordance with the
    provisions of the Atrush Block PSC.

FINANCIAL AND OPERATING RESULTS FOR THE YEAR ENDED DECEMBER 31, 2013

During the year ended December 31, 2013 the Company continued its appraisal and development campaign in respect of the Atrush petroleum property located in the Kurdistan Region of Iraq which constitutes the continuing operations of the Company. Atrush currently generates no revenues.

The Company has reported a net loss of $3.3 million in 2013, which was primarily due to routine general and administrative and share based payment expenses in respect of continuing operations, as well as the portion of uncapitalised interest expense on the Company's senior secured bonds, included as a finance cost. These charges have been offset by a gain on the release of an excess site restoration provision associated with the Company's discontinued operations in the United States.



Consolidated Statement of Comprehensive Income
(Audited, expressed in thousands of United States Dollars)

                                            For the year ended December 31,
                                                       2013            2012
---------------------------------------------------------------------------
Expenses from continuing operations
General and administrative expense                   (2,393)         (2,852)
Share based payments expense                           (882)             (8)
Impairment (loss) / recovery                            (84)          1,814
Depreciation and amortisation expense                   (65)           (183)
Share of income of associate                              -         129,000
Gain on fair valuation of net assets of
 subsidiary                                               -         102,735
Gain on sale of asset                                     -           1,100
Relinquishment costs                                      -         (25,732)
---------------------------------------------------------------------------
(Loss) / income before finance items and
 income tax expense                                  (3,424)        205,874
---------------------------------------------------------------------------
Finance cost                                           (740)           (719)
Finance income                                           28             359
---------------------------------------------------------------------------
Net finance cost                                       (712)           (360)
---------------------------------------------------------------------------
(Loss) / income before income tax expense            (4,136)        205,514
Income tax expense                                      (87)            (89)
---------------------------------------------------------------------------
Net (loss) / income from continuing
 operations                                          (4,223)        205,425
Discontinued operations
Net income / (loss) from discontinued
 operations                                             935             (61)
---------------------------------------------------------------------------
Net (loss) / income for the year                     (3,288)        205,364
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Other comprehensive income:
Currency translation differences                         19              26
---------------------------------------------------------------------------
Total other comprehensive income                         19              26
---------------------------------------------------------------------------

Total comprehensive (loss) / income for the
 year                                                (3,269)        205,390
---------------------------------------------------------------------------
---------------------------------------------------------------------------


Consolidated Balance Sheet
(Audited, expressed in thousands of United States Dollars)

                                                         As at December 31,
                                                        2013           2012
---------------------------------------------------------------------------
Assets
Non-current assets
Intangible assets                                    344,990        303,549
Property, plant and equipment                            179            257
---------------------------------------------------------------------------
                                                     345,169        303,806
---------------------------------------------------------------------------
Current assets
Cash and cash equivalents                            142,588         41,216
Other current assets                                     194            331
Inventories                                                -            198
---------------------------------------------------------------------------
                                                     142,782         41,745
---------------------------------------------------------------------------
Assets associated with discontinued operations             3              3
---------------------------------------------------------------------------
Total assets                                         487,954        345,554
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Liabilities and equity
Current liabilities
Accounts payable and accrued expenses                  7,458          7,027
Accrued interest expense on bonds                      2,252              -
Current tax liabilities                                   92             90
Deferred liability                                         -          5,000
---------------------------------------------------------------------------
                                                       9,802         12,117
---------------------------------------------------------------------------
Non-current liabilities
Borrowings                                           147,050              -
Provisions                                             1,185            120
---------------------------------------------------------------------------
                                                     148,235            120
---------------------------------------------------------------------------
Liabilities associated with discontinued
 operations                                              928          1,941
---------------------------------------------------------------------------
Total liabilities                                    158,965         14,178
---------------------------------------------------------------------------
Equity
Share capital                                        534,068        534,068
Share based payments reserve                           4,718          3,836
Cumulative translation adjustment                         27              8
Accumulated deficit                                 (209,824)      (206,536)
---------------------------------------------------------------------------
Total equity                                         328,989        331,376
---------------------------------------------------------------------------
Total liabilities and equity                         487,954        345,554
---------------------------------------------------------------------------
---------------------------------------------------------------------------

The total assets reported at the end of the year 2013 have increased by $142 million relative to the total assets reported at the end of 2012 which was mainly due to the increase in the Company's cash and debt positions resulting from the issue during the year of $150 million of senior secured bonds.

The increase by $101.4 million in the cash position of the Company during year 2013 was the combined result of receiving net cash proceeds of $147 million on the issue of the bonds, while spending $39.8 million on Atrush Block appraisal and development activities, $5.0 million on the settlement of a deferred liability and $2.5 million on G&A and other cash expenses, and with $1.7 million of positive cash movements due to changes in working capital items.


Consolidated Cash Flow Statement
(Audited, expressed in thousands of United States Dollars)

                                            For the year ended December 31,
                                                     2013              2012
---------------------------------------------------------------------------
Operating activities
Net (loss) / income from continuing
 operations                                        (4,223)          205,425
Adjustments for:
 Share based payments expense                         882                 8
 Interest expense on senior secured
  bonds - net                                         689                 -
 Impairment loss / (recovery)                          84            (1,814)
 Depreciation and amortisation expense                 65               183
 Foreign exchange loss / (gain)                        49              (333)
 Income tax                                             2               (32)
 Interest income                                      (28)              (26)
 Interest expense on equity based
  finance fee                                           -               719
 Gain on sale of asset                                  -            (1,100)
 Gain on fair valuation of net assets of
  subsidiary                                            -          (102,735)
 Share of income of associate                           -          (129,000)
 Changes in provisions                              1,065               120
 Changes in accounts payable and accrued
  expenses                                            431           (16,550)
 Changes in inventories                               114             2,552
 Changes in other current assets                      137               421
Cash used in discontinued operations                  (78)             (715)
---------------------------------------------------------------------------
Net cash outflows to operating
 activities                                          (811)          (42,877)
---------------------------------------------------------------------------

Investing activities
Interest received on cash deposits                     28                26
Deferred liability                                 (5,000)            5,000
Purchases of intangible assets                    (39,788)           (8,395)
Net proceeds on sale of intangible
 assets                                                 -            52,671
Proceeds on reimbursement of intangible
 costs                                                  -             1,250
Net proceeds on sale of property, plant
 and equipment                                          -               802
Purchases of property, plant and
 equipment                                              -              (595)
Investment in associate                                 -           (16,110)
---------------------------------------------------------------------------
Net cash (outflows to) / inflows from
 investing activities                             (44,760)           34,649
---------------------------------------------------------------------------

Financing activities
Proceeds on bond issue                            150,000                 -
Bond related transaction costs                     (3,028)                -
---------------------------------------------------------------------------
Net cash inflows from financing
 activities                                       146,972                 -
---------------------------------------------------------------------------

Effect of exchange rate changes on cash
 and cash equivalents                                 (29)              359
---------------------------------------------------------------------------

Change in cash and cash equivalents               101,372            (7,869)
Cash and cash equivalents, beginning of
 the year                                          41,216            49,085
---------------------------------------------------------------------------
Cash and cash equivalents, end of the
 year                                             142,588            41,216
---------------------------------------------------------------------------
---------------------------------------------------------------------------

OUTLOOK

The outlook for the year 2014 is as follows:

Atrush Block

Following the KRG approval of Phase 1 plans are being implemented to achieve First Oil of 30,000 bopd gross by early 2015.

Testing of the AT-4 appraisal/development well is expected to be completed during the first quarter of 2014. Drilling plans for the year 2014 include drilling of AT-5, the third Phase 1 development well, followed by the Atrush-6 well. Further testing of the AT-3 well will also be conducted during 2014 following a planned re-entry.

The FEED for the Phase 1 Production Facilities was completed in October 2013. Orders for the production modules for the 30,000 bopd facilities were finalised in December 2013. Civil engineering at the selected facilities site commenced in early 2014.

Budget

The Board of Directors approved a budget for the year 2014 which includes net capital spending on the Atrush Block appraisal and development program and debt service and other costs totalling $101.0 million.

The Company believes that based on the forecasts and projections they have prepared its current financial resources are sufficient for the Company to satisfy its contractual obligations and commitments under the agreed work program over the next 12 months. Nevertheless the potential remains that the Company's financial resources will be insufficient to fund its obligations over the next 12 months. The Company has a number of financing possibilities which it believes it would be able to pursue if and when required.

New Ventures

As part of its normal business the Company continues to evaluate new opportunities in the MENA region.

ABOUT SHAMARAN

ShaMaran Petroleum Corp. is a Kurdistan focused oil development and exploration vehicle with a 20.1% direct interest in the Atrush oil discovery, which is currently undergoing appraisal and development.

ShaMaran Petroleum is a Canadian oil and gas company listed on the TSX Venture Exchange and the NASDAQ OMX First North Exchange (Stockholm) under the symbol "SNM". 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.

The Company's annual consolidated financial statements, notes to the financial statements, management's discussion and analysis and Annual Information Form have been filed on SEDAR (www.sedar.com) and are also available on the Company's website (www.shamaranpetroleum.com). The Annual Information Form includes the Company's reserves and resource data as at December 31, 2013 as provided by McDaniel & Associates Consultants Ltd and other oil and natural gas information prepared in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.

ShaMaran will hold an annual general meeting of shareholders on June 18, 2014 in Vancouver, British Columbia.

FORWARD-LOOKING STATEMENTS

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.

ON BEHALF OF THE BOARD,

Pradeep Kabra, President and CEO

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have spoken with, or attended presentations from, utilities in the United States, South America, Asia and Europe. This session will provide a look at the CREPE drivers for SmartGrids and the solution spaces used by SmartGrids today and planned for the near future. All organizations can learn from SmartGrid’s use of Predictive Maintenance, Demand Prediction, Cloud, Big Data and Customer-facing Dashboards...
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
IoT is still a vague buzzword for many people. In his session at Internet of @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, will discuss the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. The presentation will also discuss how IoT is perceived by investors and how venture capitalist access this space. Other topics to discuss are barriers to success, what is new, what is old, and what the future may hold.
Whether you're a startup or a 100 year old enterprise, the Internet of Things offers a variety of new capabilities for your business. IoT style solutions can help you get closer your customers, launch new product lines and take over an industry. Some companies are dipping their toes in, but many have already taken the plunge, all while dramatic new capabilities continue to emerge. In his session at Internet of @ThingsExpo, Reid Carlberg, Senior Director, Developer Evangelism at salesforce.com, to discuss real-world use cases, patterns and opportunities you can harness today.
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
Noted IoT expert and researcher Joseph di Paolantonio (pictured below) has joined the @ThingsExpo faculty. Joseph, who describes himself as an “Independent Thinker” from DataArchon, will speak on the topic of “Smart Grids & Managing Big Utilities.” Over his career, Joseph di Paolantonio has worked in the energy, renewables, aerospace, telecommunications, and information technology industries. His expertise is in data analysis, system engineering, Bayesian statistics, data warehouses, business intelligence, data mining, predictive methods, and very large databases (VLDB). Prior to DataArchon, he served as a VP and Principal Analyst with Constellation Group. He is a member of the Boulder (Colo.) Brain Trust, an organization with a mission “to benefit the Business Intelligence and data management industry by providing pro bono exchange of information between vendors and independent analysts on new trends and technologies and to provide vendors with constructive feedback on their of...
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
Last week, while in San Francisco, I used the Uber app and service four times. All four experiences were great, although one of the drivers stopped for 30 seconds and then left as I was walking up to the car. He must have realized I was a blogger. None the less, the next car was just a minute away and I suffered no pain. In this article, my colleague, Ved Sen, Global Head, Advisory Services Social, Mobile and Sensors at Cognizant shares his experiences and insights.
We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) irreversibly encoded. In his session at Internet of @ThingsExpo, Peter Dunkley, Technical Director at Acision, will look at how this identity problem can be solved and discuss ways to use existing web identities for real-time communication.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn real-world benefits of WebRTC and explore future possibilities, as WebRTC and IoT intersect to improve customer service.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, an Open Source Cloud Communications company that helps the shift from legacy IN/SS7 telco networks to IP-based cloud comms. An early investor in multiple start-ups, he still finds time to code for his companies and contribute to open source projects.
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice services to the modern P2P RTC era of OTT cloud assisted services.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehension and conference efficiency.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example to explain some of these concepts including when to use different storage models.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. These technological reforms have not only changed computers and smartphones, but are also changing the data processing model for all information devices. In particular, in the area known as M2M (Machine-To-Machine), there are great expectations that information with a new type of value can be produced using a variety of devices and sensors saving/sharing data via the network and through large-scale cloud-type data processing. This consortium believes that attaching a huge number of devic...