VANCOUVER, BC, Sept. 14,
2022 /CNW/ - ShaMaran Petroleum Corp. ("ShaMaran"
or the "Company") (TSXV: SNM) (Nasdaq First North Growth Market
(Sweden): SNM) is pleased to
announce that the acquisition of TEPKRI Sarsang A/S ("TEPKRI"),
that was previously announced in the Company's news release of
July 12, 2021, has been completed
today. View PDF
In addition, the Company has filed the necessary paperwork in
Denmark to change TEPKRI's name to
ShaMaran Sarsang A/S and also to change its Copenhagen registered office address.
Dr. Adel Chaouch, President and
Chief Executive Officer of ShaMaran stated, "This is a momentous
day for ShaMaran as with this acquisition (effective date of
January 1, 2021) we have transformed
ShaMaran from being a single asset company into one owning a
portfolio of stakes in three world class producing oil fields
(Atrush, Swara Tika and East Swara Tika) in Kurdistan with improved oil qualities and
complementary production horizons. Based on the guidance from
the operator of Sarsang, net production to ShaMaran will more than
double on a pro-forma basis, positioning ShaMaran among the top
five International Oil Companies in Kurdistan on a net production basis. We
also expect our reserves to also more than double and the Company
will update the market on this sizeable reserve acquisition in due
course.
As part of the transaction closing, the two outstanding bonds of
the Company are being merged into a single $300 million issue with maturity in 2025.
Interest on the two bonds will be paid on Monday September 26, 2022 prior to bond
conversion to be completed on Tuesday
September 27, 2022. The interest period for the $300 million 2025 bond will be September 27, 2022 until the next scheduled
interest payment in January 2023.
During the third quarter of 2022 ShaMaran has bought back a
number of its own bonds through competitive market transactions
which when combined with the previously disclosed acquisitions
means that the Company now owns in excess of 10% of the new 2025
bonds.
At closing the Company has a very strong cash position.
Total cash reserves (inclusive of restricted cash) are in
excess of $118 million following the
acquisition of over $30 million in
the Company's own bonds, with pro-forma leverage well under 1x net
debt to EBITDA – our stated year end target. It is the
Company's intent to imminently retire the $20 million convertible instrument issued to
TotalEnergies as part of the purchase price, 11 months ahead of the
originally announced schedule. Going forward the Company's
financial metrics will strengthen even further and in the current
oil price environment, we expect strong cashflows from our three
producing oil fields. We look forward to seeing the value
created through our successful operations, and acquisitions
translate into much stronger growth in shareholder value for years
to come."
OTHER
This information contains information that ShaMaran is obliged
to make public pursuant to the EU Market Abuse Regulation.
This information was submitted for publication, through the
agency of the contact persons set out below, on September 14, 2022 at 5:30
p.m. Eastern Time. Arctic Securities AS (Swedish
branch) is the Company's Certified Adviser on Nasdaq First North
Growth Market (Sweden)
+46 844 68 61 00, certifiedadviser@arctic.com.
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.
FORWARD LOOKING STATEMENTS
This news release contains statements and information about
expected or anticipated future events and operational 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.
Any statements that are contained in this news release that
are not statements of historical fact may be deemed to be
forward‐looking information. Forward‐ looking information typically
contains statements with words such as "may", "will", "should",
"expected", "intend", "plan", "anticipate", "believe", "estimated",
"projects", "potential", "scheduled", "forecast", "outlook",
"budget" or the negative of those terms or similar words suggesting
future outcomes. The Company cautions readers regarding the
reliance placed by them on forward‐looking information as by its
nature, it is based on current expectations regarding future events
that involve a number of assumptions, inherent risks and
uncertainties, which could cause actual results to differ
materially from those anticipated by the Company.
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.
ABOUT SHAMARAN
ShaMaran is a Kurdistan focused
oil development and exploration company which holds a 27.6%
interest, through its wholly-owned subsidiary General Exploration
Partners, Inc., in the Atrush Block and holds an 18% interest
through its wholly-owned subsidiary TEPKRI Sarsang A/S (that is
being re-named ShaMaran Sarsang A/S) in the Sarsang Block.
ShaMaran is a Canadian oil and gas company listed on the TSX
Venture Exchange and the Nasdaq First North Growth Market
(Sweden) under the symbol "SNM"
and is part of the "Lundin Group of Companies".
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SOURCE ShaMaran Petroleum Corp.