kurdistan-map2012

The Lundin Group are one of most successful natural resources developers on the planet, with operations ranging from exploration to production, and mineral and energy interests spanning nearly every continent.

With a company motto of "No guts, no glory" the Lundin's entered the Atrush block in Iraqi Kurdistan in the search for oil with their company, ShaMaran Petroleum Corp. (ex. Bayou Bend Petroleum, which was unsuccessful in a hunt for oil in the Gulf of Mexico).

ShaMaran has a 20.1% interest in the Atrush block, which is operated by TAQA, the Abu Dhabi National Energy Company. The block is considered to have staggering potential, with exploration wells testing in excess of 40,000 barrels of light oil production per day.

Today both TAQA and ShaMaran announced that operations had been suspended at Atrush due to security concerns, resulting in a significantly reduced head count in the area.

This can be attributed to the Islamic State of Iraq and Syria (ISIS or IS) insurgency, which is fighting less than 100km from Atrush currently.

With the government in southern Iraq in shambles, IS are gaining ground in the region by way of extreme violence. IS will have a difficult time trying to take over Iraqi Kurdistan, as the Kurds are some of the toughest people on the planet, are well financed and armed, and of course have nowhere else to go.

In a brief press release this afternoon, ShaMaran said production at Atrush is now expected in 2015, whereas they had previously guided first oil production by the end of this year.

"ShaMaran Petroleum Corp. continues to closely monitor the security situation with its Atrush partners and the Kurdistan regional government. The safety and security of employees and contractors are of paramount importance.

The Atrush block partners remain committed to its development and expect to start production in 2015."

There are 810,983,860 shares out on ShaMaran, which last traded at $0.34 Wednesday, giving the company a market cap of approx. $275 million.

While IS troubles in Iraq should come as no surprise to the market, today's news will likely shake some ShaMaran investors tomorrow. However share prices are irrelevant when lives are on the line. God Speed for a peaceful resolution to conflict in the region.

Read: ShaMaran Petroleum Corp.: Update on Kurdistan Operations