Garrett Soden, President and CEO of ShaMaran, commented: "Our year-end results demonstrate the Company's earnings potential from better international crude pricing following the reopening of the Iraq-Türkiye export pipeline, with sales and EBITDAX¹ materially higher than in previous quarters. Also, payment certainty for our oil sales has significantly improved versus previous exports, enabling ShaMaran and HKN to start investing again in our assets. The debottlenecking at Atrush has increased crude handling capacity to 40,000 bopd, and we plan to 'drill-to-fill' this capacity, depending on the regional security environment. In the meantime, we are working with the appointed international consultant to confirm our full PSC entitlement according to the federal budget agreement, and we look forward to the additional top-up payments for oil sales since pipeline exports restarted last September."
Mr. Soden continued: "As previously announced, shareholders will vote on March 10, 2026, at a special meeting about our proposals to move the Company's primary listing from Toronto to Oslo and to effect a corporate continuance from Canada to Bermuda. We will continue to support the Stockholm secondary listing. Several institutional shareholders have joined the Lundin family in indicating their support for the resolutions, and we encourage all shareholders to vote in favor of these changes to attract new investors, increase trading liquidity and streamline future capital returns."
Corporate Highlights:
International oil exports from the Kurdistan Region of Iraq ("KRI") through the Iraq-Türkiye pipeline ("ITP") restarted on September 27, 2025, and continued uninterrupted during Q4 2025, in line with the interim agreements executed between the Kurdistan Regional Government ("KRG"), Government of Iraq and several international oil companies ("IOCs"), including ShaMaran.
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 interim agreements were extended to March 31, 2026, in order to facilitate the reconciliation of IOC invoices with the respective production sharing contracts ("PSCs") by the appointed international consulting firm. Payment for each participating IOC's full PSC entitlement is expected when the review is completed.
In 2025, the Company repaid $56.1 million of the corporate bond and extended the maturity of the bond by two years to July 2029. The Company also repaid the $15.6 million balance of the related-party loan plus all accrued and unpaid interest.
Financial Highlights:
Three months ended Dec 31,
Year ended Dec 31,
USD Thousands
2025
2024
2025
2024
Revenue
54,663
34,749
154,869
109,392
Gross margin on oil sales
30,517
19,076
65,046
43,276
Net cash flow from operating activities
4,671
34,692
69,074
97,965
Adjusted EBITDAX1
39,887
23,418
107,070
76,025
Revenue in Q4 2025 was $54.7 million (57% higher than the $34.7 million in Q4 2024) and $154.9 million for the full-year ("FY") 2025 (42% higher than the $109.4 million in FY 2024) primarily due to oil sales at international prices following the restart of pipeline exports;
Gross margin on oil sales in Q4 2025 was $30.5 million (60% higher than the $19.1 million in Q4 2024) and $65.0 million for FY 2025 (50% higher than $43.3 million in FY 2024) mainly due to Q4 2025 pipeline export sales at international pricing, higher local oil sales during the year and a higher working and paying interest in the Atrush Block;
Net cash flow from operating activities in Q4 2025 was $4.7 million (86% lower than the $34.7 million in Q4 2024) and $69.1 million during FY 2025 (29% lower than the $98.0 million in FY 2024) mainly due to the timing of cash receipts for pipeline export sales, as well as lower production and higher expenditures related to drilling, debottlenecking and maintenance works on both blocks;
Adjusted EBITDAX2 in Q4 2025 was $39.9 million (71% higher than the $23.4 million in Q4 2024) and $107.1 million for FY 2025 (41% higher than the $76.0 million in FY 2024) due to a combination of the effects described above;
At December 31, 2025, the Company had cash of $42.1 million and gross debt (corporate bond) of $143.8 million. Net debt2 was $101.6 million; and
At March 4, 2026, the Company has cash of $39.1 million and gross debt of $143.8 million. Net debt³ is $104.7 million.
Operational Highlights:
Three months ended Dec 31,
Year ended Dec 31
2025
2024
2025
2024
Average daily oil production, gross 100% field (Mbopd)
- Atrush
30.2
30.0
32.5
25.5
- Sarsang
27.1
36.4
25.9
34.0
Total
57.3
66.4
58.4
59.5
Average daily oil production, Company net (Mbopd)
