Presentation

ShaMaran Petroleum (“Shamaran”) is a Lundin Group E&P company active in the Kurdistan region of Iraq. The Company is currently the owner of 27.6% interest in the Atrush oil field which holds 109.9 mmbbl gross 2P reserves and is currently producing ~ 42,000 bopd gross.

ShaMaran recently signed an agreement with TotalEnergies S.E. to acquire a 18% stake in the Sarsang block (adjacent to the Atrush block) for an initial consideration of USD 155m. Sarsang holds ~350 mmbbl gross 2P oil reserves and is currently producing close to 30,000 bopd gross with expected ramp-up to 50,000 bopd mid-2022. The Sarang transaction is highly transformative and accretive for the company as it will double its 2022 net plateau production, reduce its blended oil price discount, reduce leverage and cash breakeven. The Sarsang transaction is expected to close in Q4’21 following government approval. To finance the transaction and refinance existing debt, the company is issuing a USD 300m senior unsecured bond.