VANCOUVER, BC, January 22,
2024 /CNW/ - ShaMaran Petroleum Corp. ("ShaMaran"
or the "Company") (TSXV: SNM) (Nasdaq First North: SNM) has
entered into definitive agreements for a two-step transaction to
increase its indirect working interest in the Atrush Block in
Kurdistan from 27.6% to 50%, with
HKN Energy IV, Ltd. ("HKN IV"),
an affiliate of HKN Energy Ltd. ("HKN"), indirectly acquiring a 25%
working interest and operatorship, subject to required approvals.
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Garrett Soden, President and CEO
of ShaMaran, commented: "This transaction continues ShaMaran's
consolidation strategy in Kurdistan. We are acquiring TAQA's 47.4%
interest in Atrush and selling a 25% interest and operatorship to
HKN IV. ShaMaran and HKN are already co-venturers
in the adjoining Sarsang block operated by HKN. We look forward to
working together at Atrush to realize significant synergies on both
blocks."
In the first step of the transaction, ShaMaran's wholly-owned
Cayman subsidiary, General Exploration Partners, Inc. ("GEP"),
entered into an agreement with TAQA International B.V. ("TIBV"), a
subsidiary of Abu Dhabi National Energy Company PJSC ("TAQA"), to
acquire TAQA Atrush B.V. ("TABV") ("Step 1"). TABV is a Dutch
holding company with a 47.4% working interest and operatorship in
the Atrush Production Sharing Contract in Kurdistan ("Atrush PSC"). Step 1 is subject to
customary closing conditions for a share sale and purchase
agreement in the Netherlands and
customary stock exchange approvals in Canada.
At closing of Step 1, HKN IV will begin
operating Atrush on a fee basis in contemplation of the second step
of the transaction. The appointment of HKN IV as
operator is subject to review by the Ministry of Natural Resources
in Kurdistan.
In the second step of the transaction, TABV will transfer a 25%
working interest in the Atrush PSC to GEP2, a new Cayman
wholly-owned subsidiary of GEP. In parallel, GEP has entered into
an agreement to sell GEP2 to HKN IV for nominal
consideration such that HKN IV will hold a 25% working interest and
operatorship in the Atrush PSC ("Step 2"). The sale of GEP2 to
HKN IV will be subject to approval by the
Kurdistan Regional Government ("KRG").
After closing the above transaction steps, the Atrush Block will
have the following parties: GEP 50%, HKN IV
(through GEP2) 25% and KRG 25%.
About ShaMaran Petroleum Corp.
ShaMaran is a Canadian independent oil and gas company focused
on the Kurdistan region of
Iraq. The Company indirectly holds
an 18% working interest (22.5% paying interest) in the Sarsang
Block, and, subject to closing the above transaction, will increase
its indirect 27.6% working interest in the Atrush Block to 50%. The
Company is listed in Toronto on
TSX Venture Exchange and in Stockholm on Nasdaq First North Growth Market
(ticker "SNM"). ShaMaran is part of the Lundin Group of
Companies.
Important Information
ShaMaran is obliged to make this information public pursuant
to the EU Market Abuse Regulation. This information was submitted
for publication through the agency of the contact person set out
below on January 22, 2024, at
5:00 a.m. Central European Time.
The Company's certified advisor on Nasdaq First North Growth
Market is Arctic Securities AS (Swedish branch),
+46 844 68 6100, certifiedadviser@arctic.com.
Forward-Looking Statements
Certain statements contained in this press release constitute
forward-looking information. These statements relate to future
events or the Company's future performance, business prospects and
opportunities, which are based on assumptions of management. There
is no certainty that all conditions to completion in respect of
Step 1 will be satisfied or that approval of the KRG for the sale
of GEP2 to HKN IV will be obtained.
The use of any of the words "will", "expected", "planned" and
similar expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking
information and are based on the Company's current belief or
assumptions as to the outcome and timing of certain future events.
These forward-looking statements involve risks and uncertainties
relating to, among other things, changes in oil prices, results of
exploration and development activities, including results, timing
and costs of seismic, drilling and development related activity in
the Company's area of operations and, uninsured risks, regulatory
changes, defects in title, availability of funds required to
participate in the development activities, or of financing on
reasonable terms, availability of materials and equipment on
satisfactory terms, outcome of commercial negotiations with
government and other regulatory authorities, timeliness of
government or other regulatory approvals, actual performance of
facilities, availability of third-party service providers,
equipment and processes relative to specifications and expectations
and unanticipated environmental impacts on operations. Actual
future results may differ materially. Various assumptions or
factors are typically applied in drawing conclusions or making the
forecasts or projections set out in forward-looking information.
Those assumptions and factors are based on information currently
available to the Company. The forward-looking information contained
in this release is made as of the date hereof, and the Company is
not obligated to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise,
except as required by applicable securities laws. Because of the
risks, uncertainties and assumptions contained herein, investors
should not place undue reliance on forward-looking information. The
foregoing statements expressly qualify any forward-looking
information.
Neither 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.
SOURCE ShaMaran Petroleum Corp.
