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Atrush Exceeds 50m Barrels Production

By John Lee.

ShaMaran Petroleum has announce that the Atrush block in Iraqi Kurdistan has surpassed the cumulative oil production milestone of 50 million barrels since its first oil in July 2017.

Dr. Adel Chaouch, President and Chief Executive Officer of ShaMaran, commented:

“This significant operational achievement is noteworthy as the production milestone has been achieved notwithstanding 2020’s significantly reduced development program due to the global pandemic and collapse of world crude oil prices.

“This demonstrates that the Atrush joint venture has the ability to successfully navigate through the Kurdistan oil industry’s difficult as well as good times.“

(Source: ShaMaran Petroleum)

The post Atrush Exceeds 50m Barrels Production first appeared on Iraq Business News.

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ShaMaran achieves 40m Barrels Production at Atrush

ShaMaran Petroleum has announced that the January 2021 interest payment due on its 12% senior unsecured bonds due 2023 (ISIN: NO 001082645.6) has been timely made to all Bondholders.

In addition, ShaMaran said the Atrush field total cumulative crude oil production has exceeded 40 million barrels.

The Atrush field is located 85 km northwest of Erbil and is one of the largest new oil developments in the Kurdistan Region of Iraq.

The field was first discovered in 2011 and oil production started in July 2017. In its fourth year of production, the Atrush field has sold all its production to the Kurdistan Regional Government of Iraq at international market prices less a discount based on quality and transportation charges.

ShaMaran President and Chief Executive Officer Dr. Adel Chaouch said:

“Following a challenging 2020 for the oil industry in Kurdistan, ShaMaran is pleased to start off 2021 with the full and timely payment of the semi-annual interest owed to our Bondholders.

“Our achievement of this 40 million barrel production milestone also demonstrates the ability of Atrush field to maintain stable production even through the past difficult times.  We look forward to future achievements.“

(Source: ShaMaran)

The post ShaMaran achieves 40m Barrels Production at Atrush first appeared on Iraq Business News.

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Shamaran Bondholders appoint Advisers

By John Lee.

According to Bloomberg Law, a group of bondholders of Shamaran Petroleum has reportedly appointed restructuring specialists Akin Gump Strauss Hauer & Feld LLP to advise on ongoing debt talks.

ShaMaran Petroleum said last week that that it continues to examine alternatives to address a breach of financial covenant and liquidity shortfall, and that difficult discussions with its largest independent bondholders are continuing.

The Canadian company has a 27.6 percent direct interest in the Atrush Block production sharing contract in Iraqi Kurdistan.

More here (subscription required).

(Sources: Bloomberg Law, Shamaran)

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Atrush Field performing “Exceptionally Well”

By John Lee.

ShaMaran Petroleum has reported that the Atrush Field continues to perform “exceptionally well“.

Average production for the month of November was 43,360 bopd. The CK-15 well is now online and wells currently are undergoing normal-course maintenance.

The Company reiterates its Atrush 2019 average daily production guidance of between 30,000 and 35,000 bopd and a target 2019 exit rate between 45,000 bopd and 50,000 bopd. The Company shares in this production, pursuant to a production sharing contract, with a working interest of 27.6%.

Since the beginning of the year, production has increased 56% and the Company has invested significantly in infrastructure to facilitate continued production growth.

The Atrush field is located 85 km northwest of Erbil and is one of the largest new oil developments in the Kurdistan Region of Iraq. The field was first discovered in 2011 and oil production started in July 2017. In its over two years of production the Atrush field has sold all its production to the Kurdistan Regional Government of Iraq at international market prices.

(Source: ShaMaran Petroleum)

Posted on

Atrush Field performing “Exceptionally Well”

By John Lee.

ShaMaran Petroleum has reported that the Atrush Field continues to perform “exceptionally well“.

Average production for the month of November was 43,360 bopd. The CK-15 well is now online and wells currently are undergoing normal-course maintenance.

The Company reiterates its Atrush 2019 average daily production guidance of between 30,000 and 35,000 bopd and a target 2019 exit rate between 45,000 bopd and 50,000 bopd. The Company shares in this production, pursuant to a production sharing contract, with a working interest of 27.6%.

Since the beginning of the year, production has increased 56% and the Company has invested significantly in infrastructure to facilitate continued production growth.

The Atrush field is located 85 km northwest of Erbil and is one of the largest new oil developments in the Kurdistan Region of Iraq. The field was first discovered in 2011 and oil production started in July 2017. In its over two years of production the Atrush field has sold all its production to the Kurdistan Regional Government of Iraq at international market prices.

(Source: ShaMaran Petroleum)

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Atrush Production Update

ShaMaran Petroleum reports that operations in the Atrush field in Kurdistan are continuing in a normal, safe and secure manner.

Atrush is currently producing at approximately 27 thousand barrels of oil per day (“bopd”) and exports are continuing via the Kurdistan Export Pipeline system. Atrush exports for the month of December averaged 26,163 bopd and benefitted from a higher facility uptime than the 90% previously projected.

Currently the production facilities are limited to processing approximately 27,000 bopd of the total 30,000 bopd capacity due to low ambient temperatures which limits the amount of heat available to process the oil to export specifications.

Plans in 2018 include debottlenecking the production facility and proceeding with the testing, completion and tie-in of the Chiya Khere-7 well which was drilled towards the end of last year.

(Source: ShaMaran)

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ShaMaran starts Drilling at Chiya Khere

ShaMaran Petroleum has announced that drilling operations have commenced on the Chiya Khere (“CK-7”) appraisal and development well in the Atrush Block in the Kurdistan Region of Iraq.

CK-7 is located in the central area of the Atrush Block approximately 3 kilometres east of the Atrush 2 producing well and 3.5 kilometres west of the Atrush 3 appraisal well.

The main objectives of the well are to appraise the commercial potential of the Mus formation, to help reduce the uncertainty in the location of the medium to heavy oil transition zone and to serve as a further producing well.

The well will be drilled with the EDC Romfor 25 drilling rig (pictured) and is expected to take approximately 52 days. Planned total vertical depth for the well is approximately 1,575 metres.

(Source: ShaMaran)