ShaMaran Petroleum Corp. ("ShaMaran" or the "Company") (TSX VENTURE:SNM)(OMX:SNM) is pleased to announce its financial and operating results for three months ended March 31, 2017. Unless otherwise stated all currency amounts indicated as "$" in this news release are expressed in thousands of United States dollars.
Chris Bruijnzeels, President and CEO of ShaMaran, commented, "I am extremely pleased that we expect to be producing before the end of June 2017. The Atrush field holds significant resources and the onset of production will allow us to move forward to realise full value from this asset."
HIGHLIGHTS AND DEVELOPMENTS
FINANCIAL AND OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2017
During the reporting period the Company continued with the first phase of the development program in respect of the Atrush petroleum property located in the Kurdistan Region of Iraq. Atrush currently generates no revenues.
The Company reports a net loss of $2.3 million for the three months ended March 31, 2017 which was primarily driven by routine general and administrative expenses and finance cost, the substantial portion of which was expensed borrowing costs on the Company's bonds. These charges have been offset by interest income on Atrush cost loans and interest on cash held in short term deposits.
Total assets increased during the first quarter of 2017 by $30.3 million as a result of increases in share capital and equity reserves by $26.4 million, accrued bond interest by $4.9 million and other non-current liabilities by $1.3 million which were offset by an increase in the accumulated deficit by $2.3 million, principally due to the net loss recorded in the period.
Property, plant & equipment assets increased during the first three months of 2017 by $7.8 million which was due to addition of $4.3 million in Atrush development costs and $3.5 million in capitalised borrowing. The increase in intangible assets by $0.2 million during 2016 resulted principally from capitalised borrowing costs.
Loans and receivables increased by $4.7 million from funding $3.2 million of Feeder Pipeline costs, from funding $1.2 million of the KRG's share of development costs and from accruing $0.3 million in interest on the outstanding loan balances.
The increase by $17.6 million in the cash position of the Company during the first quarter of 2017 was due to cash inflows of $26.4 million in net proceeds from the sale of the Company's shares in a private placement completed in January 2017 which were offset by spending of $3.4 million on Atrush development activities, $4.3 million of financing provided to a joint venture partner and $1.1 million of cash out on G&A and other cash expenses.
ANNUAL GENERAL MEETING
The Company also announces that the Annual General Meeting of Shareholders will be held on Wednesday, June 15, 2017, at 8:00 a.m. (Vancouver time) at Suite 2000, 885 West Georgia Street, Vancouver, British Columbia, V6C 3E8.
This information in this release is subject to the disclosure requirements of ShaMaran Petroleum Corp. under the EU Market Abuse Regulation and the Swedish Securities Market Act. This information was publicly communicated on May 12, 2017 at 4:00 p.m. Toronto Time.
ShaMaran Petroleum Corp. is a Kurdistan focused oil development and exploration company with a 20.1% direct interest in the Atrush oil discovery. The Atrush Block is currently undergoing an appraisal and development campaign.
ShaMaran is a Canadian oil and gas company listed on the TSX Venture Exchange and the NASDAQ 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. Pareto Securities AB is the Company's Certified Advisor on NASDAQ First North.
The Company's condensed interim consolidated financial statements, notes to the financial statements and management's discussion and analysis have been filed on SEDAR (www.sedar.com) and are also available on the Company's website (www.shamaranpetroleum.com).
SOURCE: ShaMaran Petroleum Corp.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.