ShaMaran Petroleum Corp.: ShaMaran Reports Year-End 2023 Reserves and Resources

Production from the Company's assets in Kurdistan was impacted in 2023 by the closure of the Iraq-Turkey pipeline ("ITP") on March 25, 2023. The ITP closure initially reduced production rates from the Sarsang Block due to market demand constraints when local sales commenced via trucking in April 2023. Production from the Atrush Block was shut-in following the ITP closure, due to a lack of trucking facilities, until sales started to local refineries in November 2023 at reduced rates via pipeline flow reversal.

For 2023, Total Property Gross Production was 14.3 million barrels of oil ("MMbbls"), and total Company working interest production was 2.9 MMbbls. Atrush has achieved cumulative production of approximately 70.5 MMbbls, and Sarsang has achieved cumulative production of approximately 66.1 MMbbls since development commenced in both fields in 2013.

The reduced field activity in 2023 resulted in:

• Company's working interest 2P reserves1 decreasing by 2023 production of 2.9 MMbbls, from 68.3 MMbbls at December 31, 2022, to 65.4 MMbbls at December 31, 2023; and
• Company's working interest 2C resource2 volumes remaining constant from 41.5 MMbbls at December 31, 2022, to 41.5 MMbbls at December 31, 2023.

The Company refers to its news release on January 22, 2024 regarding the signing of definitive agreements that upon completion will increase ShaMaran's indirect ownership in the Atrush Block from 27.6% to 50% working interest. Assuming the transaction had closed on December 31, 2023, ShaMaran's reserves and resource position would be impacted as follows:

• Company's working interest 2P reserves1 would increase by 28% from 68.3 MMbbls at December 31, 2022, to 87.7 MMbbls as at December 31, 2023; and
• Company's working interest 2P reserves replacement ratio3 would be 769%4 for 2023.

Due to the continued closure of the ITP and the unpredictability of the local sales market in Kurdistan, the Company has not provided production guidance for 2024.

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 February 14, 2024, at5:30 p.m. Eastern 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.

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.

Statements relating to "reserves" are also deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. Actual reserve values may be greater than or less than the estimates provided herein. Unless otherwise noted, reserves referenced herein are given as at December 31, 2023. Also, estimates of reserves for individual properties may not reflect the same confidence level as estimates for all properties due to the effect of aggregation. All required reserve information for the Company is contained in its Form 51-101F1 for the year ended December 31, 2023, which is accessible at www.sedarplus.ca.

With respect to disclosure contained herein regarding resources other than reserves, there is uncertainty that it will be commercially viable to produce any portion of the resources, and there is significant uncertainty regarding the ultimate recoverability of such resources.

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.
 

Notes:

1Reserves and contingent resources estimates were provided by McDaniel & Associates Consultants Ltd., the Company's independent qualified resources evaluator, and were prepared in accordance with standards set out in the Canadian National Instrument NI 51-101 and Canadian Oil and Gas Evaluation Handbook.

2Company's working interest 2C resources are defined as the best estimate of working interest quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies.

3 Company's working interest 2P reserves replacement ratio is defined as the ratio of reserves additions to production during the  year, including impacts of acquisitions and dispositions.

4Company's working interest 2P reserve replacement ratio for the combined blocks has been calculated as follows:

No Acquisition Acquisition Included
Extensions, MMstb 0 0
Improved Recovery, MMstb 0 0
Technical Revisions, MMstb 0 0
Acquisitions, MMstb 0 22.3
Total Adjustments, MMstb 0 22.3
2023 Production, MMstb 2.9 2.9
2P Replacement Ratio 0% 769%

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