ShaMaran Petroleum Corp. ("ShaMaran" or the "Corporation") (TSX VENTURE:SNM) (OMX:SNM) announces that its wholly owned subsidiary, General Exploration Partners, Inc. ("GEP"), has received a Default Notice from the Operator of the Atrush Block, TAQA Atrush B.V. ("TAQA"), claiming that GEP has failed to pay its full participating interest share of July and August cash calls pursuant to the Atrush Block Joint Operating Agreement (the "JOA") between TAQA, GEP and Marathon Oil KDV B.V. ("MOKDV"). MOKDV, the other non-operating Atrush partner, has also received a similar Default Notice from TAQA.
GEP and TAQA are in disagreement as to the correct interpretation of participating interest share of Atrush cash calls which are due and payable by GEP under the JOA and the Atrush Block Production Sharing Contract (the "PSC"). GEP has paid, and will continue to pay, all cash calls in full in accordance with its participating interest.
GEP intends to respond to the Default Notice by providing TAQA with a written Notice of Dispute in which GEP disputes that it is in default on the basis that it has paid in full its share of cash calls in accordance with the terms of the JOA, and that TAQA has breached certain contractual and equitable obligations under the JOA including implementing the terms of the PSC. GEP will seek to recover all losses, costs, expenses, compensation and damages in law and equity caused directly or indirectly by TAQA's breach of its contractual and equitable obligations as Operator and will also take all available and necessary interim measures to protect its interests under the JOA and the PSC.
ShaMaran Petroleum Corp. is a Kurdistan focused oil development and exploration company with a 20.1% direct interest in the Atrush oil discovery, which is currently undergoing appraisal and development. The Atrush Block is operated by TAQA and is held 39.9% by TAQA, 20.1% by GEP, 15% by MOKDV, (a wholly owned subsidiary of Marathon Oil Corporation (NYSE: MRO)), and 25% by the Kurdistan Regional Government of Iraq.
ShaMaran Petroleum is a Canadian oil and gas company listed on the TSX Venture Exchange and the NASDAQ OMX First North Exchange (Stockholm) under the symbol "SNM". Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ShaMaran's Certified Advisor on NASDAQ OMX First North is Pareto Securities AB.