ShaMaran Updates on Operations at Atrush Development in Kurdistan

ShaMaran Petroleum Corp. (ShaMaran or the Corporation) provided Monday an operational update on the Atrush development in the Kurdistan Region of Iraq.

The Chiya Khere (CK-5) development well was spud May 16 using the DQE31 drilling rig and reached Total Depth of 6,883 feet (2,098 meters) Measured Depth (5,721 feet or 1,744 meters True Vertical Depth) in the Butmah formation June 28, in 43 days. The well was drilled ahead of schedule and under budget. The well was deviated from the same well pad as AT-1 & AT-4 with the bottomhole location approximately 2,854 feet (870 meters) WSW of the surface location. The average hole angle through the reservoir section was 40 degrees. CK-5 will be tested using a service rig in early 2015 prior to final completion and tie-in to the Phase One production facility. As in previous wells, no water leg was encountered in the reservoir section, with the well penetrating a gross vertical oil column (assuming an estimated average Free Water level of minus 1,453 feet or minus 443 meters subsea) of approximately 1,771 feet (540 meters).

The DQE31 spudded the Chiya Khere (CK-8) development well from the same well pad July 19, which is a similar well to CK-5 targeting a bottomhole location approximately 0.93 mile (1.5 kilometers) ESE of the surface location. This well is also planned to be tested using a service rig in early 2015 prior to final completion and tie-in to the Phase One production facility.

A second drilling rig is to be mobilized in August to focus on the Phase Two appraisal work which consists of the CK-6 appraisal well (to be drilled from the same well pad as AT-3), the planned retest of AT-3 and the CK-7 appraisal/development well (location under construction).

The Atrush Block is operated by TAQA Atrush B.V., a subsidiary of Abu Dhabi National Energy Company PJSC which holds a 39.9 percent working interest in the Block. ShaMaran Petroleum Corp. holds a 20.1 percent working interest through its wholly owned subsidiary, ShaMaran Ventures BV (100 percent owner of General Exploration Partners, Inc.). Marathon Oil KDV B.V., a wholly owned subsidiary of Marathon Oil Corporation, holds a 15 percent working interest in the block. Subsequent to their back-in the Government of the Kurdistan Region of Iraq holds a 25 percent working interest.


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