ShaMaran Petroleum Corp., Vancouver, BC, has closed a deal to acquire 100% of the shares of TEPKRI Sarsang A/S, a subsidiary of TotalEnergies, which holds an 18% non-operated participating interest in the Sarsang PSC in the Kurdistan region of Iraq.
Through the acquisition, ShaMaran adds cash flow and potential production growth underpinned by its interests in two PSCs with three producing oil fields in the same vicinity, the company said in its release Sept. 15.
The 420-sq km onshore Sarsang block, in the Zagros fold and thrust belt of northern Kurdistan, is on the northern border of ShaMaran’s Atrush block (27.6%) and is comprised of two producing oil fields: Swara Tika and East Swara Tika. Each field contains three independent Triassic oil reservoirs.
Swara Tika is currently producing over 29,000 b/d of oil (36-39 API) from six wells, according to operator HKN Energy Ltd.’s website. East Swara Tika has one well producing about 2,500 b/d of oil, according to the Dallas-based operator.
At Swara Tika, an expansion project is under way with the addition of a new 25,000 bo/d processing plant, which is expected to lift gross production to 50,000 b/d of oil. First oil is expected mid-September, the operator said in an update Aug. 17. Over the next 30 or more days, HKN will commission the plant, tie-in five previously drilled wells, conduct flow testing, and then optimize production rates. Export pipeline tie-in remains on track to align with completion of the plant expansion, the operator said. 3D seismic acquisition covering the western part of Swara Tika began in February 2022 and is expected to conclude in this year's third quarter, according to the update.
The deal between ShaMaran and TotalEnergies was signed in July 2021 for a firm consideration of $155 million and an additional contingent consideration of $15 million dependent on future production and oil prices. ShaMaran has filed paperwork to change TEPKRI’s name to ShaMaran Sarsang A/S.
Sarsang, discovered in 2011, is operated by HKN (62%). The Kurdistan Regional Government holds 20%.
