ShaMaran Reports Third Quarter 2026 Results
November 9, 2026
ShaMaran Petroleum Ltd. ("ShaMaran" or the "Company") (Euronext Growth Oslo: SNM) (Nasdaq First North Stockholm: SNM) today released its financial and operating results and related Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2026.
Garrett Soden, President and CEO of ShaMaran, commented:
"Our Q3 2026 results demonstrate the earning power of ShaMaran's assets in the current oil price environment. EBITDAX was more than four times higher than the comparable quarter of 2025, despite the loss of one month of production due to shut-ins caused by the Iran war. Our average estimated realized net oil price during the quarter was over $107 per barrel.
"After quarter end, we received $26.7 million of oil sales proceeds and top-up payments. We also announced major steps that will grow the business and create long-term value.
"ShaMaran recently closed the Hamrin investment alongside our strategic partner, HKN. This represents a landmark entry into Federal Iraq that expands and diversifies our footprint beyond Kurdistan. The Hamrin field brings a complementary mix of production, reserves and cash flow, further strengthening our portfolio.
"We also successfully refinanced our corporate bond on more favorable terms, extending the maturity and reducing the interest rate, while raising additional capital to efficiently fund our investment in Hamrin.
"Finally, our proposed merger with Gulf Keystone is a transformational opportunity for both companies. The combination will create a larger, more diversified business with the scale and financial strength to deliver dividends and growth for many years to come. We look forward to completing the merger next year."
Corporate Highlights:
- Atrush and Sarsang production and pipeline exports restarted in mid-August 2026, following temporary disruptions since March 2026 caused by the regional security situation. Other international oil companies ("IOCs") in the region also announced temporary production shut ins over the same period. The volume of oil being exported by the industry from the Kurdistan Region of Iraq ("KRI") via the Iraq-Türkiye pipeline ("ITP") has steadily increased back to the level of exports before the Iran war; o International oil exports from the KRI through the ITP restarted on September 27, 2025, and have continued in line with the interim Tri-Party Agreement ("TPA") executed between the Kurdistan Regional Government ("KRG"), Government of Iraq and several IOCs, including ShaMaran.
o IOCs are entitled to receive export payments "in-kind" under the interim agreements, with cargoes sold by the IOC appointed marketing firm on a regular basis, and payments for the sales received approximately 30 days after each lifting. The payments due from the Iraqi State Organization for Marketing of Oil ("SOMO") as part of the interim agreements have been received on a regular basis since the start of exports in September 2025. o The TPA has been extended until January 27, 2027, and a long-term agreement is expected after the reconciliation of IOC invoices with the respective PSCs by the appointed international consulting firm. With the review of the initial invoices now complete, IOCs expect to receive payment of their full PSC entitlements. Top-up payments commenced in October 2026, and IOCs are working with SOMO to collect the remaining amounts due.
Financial Highlights:
- Revenue in Q3 2026 was $84.6 million (193% higher than the $28.9 million in Q3 2025) due to the impact of higher international oil prices in Q3 2026 (versus local sales for most of Q3 2025);
- Oil sales in Q3 2026 averaged an estimated net oil price of $107.23/bbl from the two blocks on a combined basis (208% higher than the $34.76/bbl in Q3 2025) due to international pricing since the restart of pipeline exports;
- Gross margin on oil sales in Q3 2026 was $69.6 million (648% higher than the $9.3 million in Q3 2025) mainly due to Q3 2026 pipeline export sales at higher international pricing and lower costs due to the shut-ins;
- Net cash flow from operating activities in Q3 2026 was $12.9 million (119% higher than the $5.9 million in Q3 2025). This is expected to rise significantly in the coming quarters due to timing of cash receipts for pipeline export sales, with a significant amount of the quarterly sales proceeds and top-up payments expected after the end of the third quarter;
- Adjusted EBITDAX1 in Q3 2026 was $76.0 million (325% higher than the $17.9 million in Q3 2025) due to a combination of the effects described above; - At September 30, 2026, the Company had cash of $21.8 million and gross debt (corporate bond) of $143.8 million. Net debt was $121.9 million, and - At November 9, 2026, the Company has cash of $69.2 million and gross debt of $200 million. Net debt2 is $130.8 million.
Operational Highlights:
- At Atrush, average gross daily oil production in Q3 2026 was 26.6 Mbopd, with current production at approximately 40.0 Mbopd;
- At Sarsang, average gross daily oil production in Q3 2026 was 5.4 Mbopd, with current production at approximately 12.0 Mbopd; - Average gross daily oil production from Atrush and Sarsang in Q3 2026 on a combined basis was 32.0 Mbopd (33% lower than the 47.6 Mbopd in Q3 2025) due to shut-ins during Q3 2026 (28 days in total) and is currently approximately 52.0 Mbopd;
- Average Company net daily oil production from Atrush and Sarsang in Q3 2026 on a combined basis was 14.3 Mbopd (21% lower than the 18.0 Mbopd in Q3 2025) due to shut-ins during Q3 2026 and is currently approximately 22.2 Mbopd; - Production at Atrush and Sarsang restarted when the security situation improved in mid-August 2026, and both fields resumed exports through the ITP. Production at Sarsang has gradually increased with repairs to the damage from drone attacks in Q1 2026. When not shut-in, Atrush produced at approximately 41.5 Mbopd during the third quarter, and - Operational plans for the remainder of 2026 involve a further ramping up of production at Sarsang as production facilities are gradually enhanced and stranded wells put back online, together with installation of drone detection technology across both blocks.
Subsequent Events:
- On October 15, 2026, the Company announced the commencement of top-up payments for export oil sales following the allocation by SOMO of additional oil cargoes to IOCs under the October 2026 lifting program. The extra barrels lifted are intended to compensate IOCs at full international prices under the TPA interim export agreements and start the payment of outstanding top-up receivables accrued on export sales from September to December 2025; - On October 20, 2026, ShaMaran announced the extension of its cooperation with HKN Energy Ltd. ("HKN") into Federal Iraq through the Hamrin oil development and production contract ("DPC"). As part of this expansion, ShaMaran will have a 25% shareholding in HKN Hamrin Ltd., the joint venture company holding 100% of the Hamrin DPC. The transaction closed on November 9, 2026;
- On October 20, 2026, the Company also announced the signing of a merger and combination agreement with Gulf Keystone Petroleum Ltd. ("Gulf Keystone") to combine the two businesses. The Transaction will be structured as a statutory merger under corporate law in Bermuda, where both companies are incorporated, whereby Gulf Keystone will remain as the surviving legal entity. Completion of the Transaction is subject to customary closing conditions and is expected to occur in mid-2027; - On October 21, 2026, the Company announced the successful placement of a new $200 million five-year senior unsecured bond maturing in 2031 and carrying an annual coupon rate of 10.25%. The proceeds will be used to refinance the Company's existing bond maturing in 2029 that has a 12.0% coupon, as well as to fund investments in the Hamrin field in Federal Iraq and for general corporate purposes. Settlement of the bond issue was completed on November 5, 2026; and - The Company has received $26.7 million of oil sales proceeds and top-up payments since the end of the third quarter of 2026.
Please see attached PDF to read the full announcement.