ShaMaran Re-Enters Pulkhana-8 Well

ShaMaran provided the following operational update on the Pulkhana-8 re-entry well in Kurdistan.

The Pulkhana-8 Re-entry well ("PLK-8RE") tested an average rate of 2,650 barrels of 31.6 degree API oil per day from the Upper Cretaceous Shiranish formation (high rates of up to 3,530 barrels of oil per day were recorded during the test). The well continued to clean up during the test and produced an average of 24.6% muddy water which is believed to be drilling fluids and lost circulation material associated with the initial drilling of the well in 2006. To facilitate cleanup on the well operations are currently underway to drill approximately 50 meters of additional reservoir section. It is expected that the Pulkhana-8 well will be completed as the first production well for connection into the Pulkhana Early Production Facility planned for start-up during 2012.

The results of PLK-8RE and Pulkhana-9 ("PLK-9") have indicated that there could be up to five separate oil bearing reservoirs in the Pulkhana structure. Oil has been tested from the two proven reservoirs (Euphrates & Shiranish formations). Three additional regional reservoirs (Jaddala, Upper Dhiban and the Balambo) are pending further evaluation as the appraisal program continues.

Operations are also ongoing to sidetrack the PLK-9 well and barefoot test the Shiranish and Balambo intervals. Results from the testing are expected in the next 6-8 weeks. Plans are being finalised for the next appraisal well in the field, Pulkhana-10, which will be a well dedicated to the appraisal and development of the Euphrates and Jaddala reservoirs.

ShaMaran President and CEO, Pradeep Kabra, commented, "We are pleased with the preliminary flow rates from the Pulkhana 8 re-entry well and intend continuing the aggressive appraisal program to unlock the value of the field."

The Company has a sixty percent working interest and is Operator of the Pulkhana Block.


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