Mr. Elvis Pellumbi reports

SHAMARAN REPORTS INCIDENT AT SARSANG FACILITY

Shamaran Petroleum Corp., the operator of the Sarsang block in the Kurdistan region of Iraq, had an explosion occur earlier today at one of the processing facilities in the Sarang field.

All personnel have been safely accounted for, and no injuries have been reported. HKN has initiated a full assessment of the situation and is co-ordinating closely with local authorities and relevant stakeholders to manage the response and ensure the safety of surrounding communities.

Operations at the field have been suspended until the site is secure and a full evaluation is completed. The production at Atrush has also been shut in as a precaution.

Shamaran and HKN are committed to the highest standards of safety and environmental responsibility and will provide further updates as more information becomes available.

About Shamaran Petroleum Corp.

Shamaran is a Canadian independent oil and gas company focused on the Kurdistan region of Iraq. The company indirectly holds a 50-per-cent working interest in the Atrush block and an 18-per-cent working interest in the Sarsang block.