Mr. Elvis Pellumbi reports

SHAMARAN REPORTS YEAR-END 2023 RESERVES AND RESOURCES

Shamaran Petroleum Corp. has made its year-end 2023 reserves and resources filings.

Production from the company's assets in Kurdistan was impacted in 2023 by the closure of the Iraq-Turkey pipeline on March 25, 2023. The ITP closure initially reduced production rates from the Sarsang block due to market demand constraints when local sales commenced through trucking in April, 2023. Production from the Atrush block was shut in following the ITP closure due to a lack of trucking facilities until sales started to local refineries in November, 2023, at reduced rates by pipeline flow reversal.

For 2023, total property gross production was 14.3 million barrels of oil, and total company working interest production was 2.9 MMbbl. Atrush has achieved cumulative production of approximately 70.5 MMbbl, and Sarsang has achieved cumulative production of approximately 66.1 MMbbl since development commenced in both fields in 2013.

The reduced field activity in 2023 resulted in:

• Company's working interest 2P reserves decreasing by 2023 production of 2.9 MMbbl from 68.3 MMbbl at Dec. 31, 2022, to 65.4 MMbbl at Dec. 31, 2023;
• Company's working interest 2C resource volumes remaining constant from 41.5 MMbbl at Dec. 31, 2022, to 41.5 MMbbl at Dec. 31, 2023.

The company refers to its news release on Jan. 22, 2024, regarding the signing of definitive agreements that, upon completion, will increase Shamaran's indirect ownership in the Atrush block from 27.6-per-cent to 50-per-cent working interest. Assuming the transaction had closed on Dec. 31, 2023, Shamaran's reserves and resource position would be impacted as follows:

• Company's working interest 2P reserves would increase by 28 per cent from 68.3 MMbbl at Dec. 31, 2022, to 87.7 MMbbl as at Dec. 31, 2023;
• Company's working interest 2P reserves replacement ratio would be 769 per cent for 2023.

Due to the continued closure of the ITP and the unpredictability of the local sales market in Kurdistan, the company has not provided production guidance for 2024.

About Shamaran Petroleum Corp.

Shamaran is a Canadian independent oil and gas company focused on the Kurdistan region of Iraq. The company indirectly holds an 18-per-cent working interest (22.5-per-cent paying interest) in the Sarsang block and, subject to closing the previously announced transaction, will increase its indirect 27.6-per-cent working interest in the Atrush block to 50 per cent. The company is listed in Toronto on the TSX Venture Exchange and in Stockholm on the Nasdaq First North Growth Market (ticker SNM). Shamaran is part of the Lundin group of companies.

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