ShaMaran Petroleum (SNM:TSX)

ShaMaran Petroleum (SNM:TSX)

Lundin Group company, ShaMaran Petroleum (SNM:TSX), received good news on the development of its Atrush block located in the Kurdistan region of Iraq.  The company and its partners received approval from the Kurdistan regional government for the first phase of development there.  This approval allows for a 25-year development license which allows SNM, TAQA and the other partners to process and produce oil in the region. The Atrush block is operated by TAQA which is a subsidiary of the Abu Dhabi National Energy Company and holds a 39.9% interest (SNM holds 20.1% working-interest with Marathon Oil and the Kurdistan government holding 15% and 25%, respectively).

The Atrush block is expected to produce 30,000bopd of gross production by early 2015.  The Atrush partners expect to spend $300 million by drilling three production wells and building a central processing facility.  TAQA is currently working to drill the Atrush-4 well.

Pradeep Kabra, President and CEO of ShaMaran, commented: "We are pleased to receive ministry approval for phase I of the Atrush field with a Oct. 1, 2013, effective date for the commencement of the development period (pursuant to clause 12.9 of the PSC). The partnership is working very closely with the KRG to fast-track first oil."

The Lundin Family Trust holds roughly 19.9% of the stock and is led by Chairman Keith Hill who is also the President and CEO of Africa Oil (AOI:TSXV), another Lundin Group company which made a substantial oil discovery in Kenya.