Garrett Soden, President and CEO of ShaMaran, commented: "ShaMaran had a solid start to 2026 on the back of operational strength at Atrush and higher price realizations from international export sales. Unfortunately, the Iran war has severely impacted the Kurdistan region with most international oil companies shut-in since early March. Together with our operating partner, HKN, we remain focused on ensuring the safety of personnel, reducing operating expenditures and non-critical activities while maintaining readiness to restart production when the security situation allows. In the meantime, the closure of the Strait of Hormuz has highlighted the critical importance of the Iraq-Türkiye export pipeline as an outlet for all Iraqi crude."
Mr. Soden continued: "As previously announced, shareholders approved the proposals to move the Company's primary listing from Toronto to Oslo and to effect a corporate continuance from Canada to Bermuda. We will proceed with that process shortly."
Corporate Highlights:
On March 2, 2026, the Company announced a temporary production shut-in at both the Atrush and Sarsang blocks as a precautionary measure due to the regional security environment related to the Iran war. Other international oil companies ("IOCs") in the region have also announced temporary production shut‑ins since early March, with only a fraction of the pre-Iran war oil volumes being exported from the Kurdistan Region of Iraq ("KRI") via the Iraq-Türkiye pipeline ("ITP");
The Company announced on March 5, 2026, an explosion at one of the processing facilities in the Sarsang field and on April 1, 2026, an explosion at one of the storage facilities in the Sarsang field. All personnel were safely accounted for, and no injuries were reported;
International oil exports from the KRI through the ITP restarted on September 27, 2025, and continue in line with the interim agreements executed between the Kurdistan Regional Government ("KRG"), Government of Iraq and 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. There have been no delays in receiving payment from the Iraqi State Organization for Marketing of Oil ("SOMO") as part of the interim agreements since the start of exports in September 2025.
The interim agreements were extended to June 30, 2026, in order to facilitate the reconciliation of IOC invoices with the respective production sharing contracts ("PSCs") by the appointed international consulting firm. IOCs expect full PSC entitlement payment when the review is completed.
On March 10, 2026, the Company announced shareholder approval for the continuance of the Company from Canada to Bermuda and the delisting of the Company's shares from the TSXV. Following the continuance to Bermuda, the Company plans to list its shares on the Euronext Growth Oslo market operated by the Oslo Stock Exchange while maintaining the Company's secondary listing on the Nasdaq First North in Stockholm. Once ShaMaran completes both transactions, the Company will no longer be incorporated in British Columbia and subject to the laws of Canada, it will cease to be listed on the TSXV, and it will no longer be a reporting issuer in any jurisdiction in Canada. ShaMaran will instead be incorporated in and subject to the laws of Bermuda.
Financial Highlights:
Three months ended March 31,
USD Thousands
2026
2025
Revenue
38,031
35,885
Gross margin on oil sales
22,698
12,476
Net cash flow from operating activities
21,423
32,032
Adjusted EBITDAX1
28,128
24,465
Revenue in Q1 2026 was $38.0 million (6% higher than the $35.9 million in Q1 2025) primarily due to oil sales at international prices following the restart of pipeline exports. Production has been suspended since March 2, 2026, impacting revenue in Q1 2026;
Gross margin on oil sales in Q1 2026 was $22.7 million (82% higher than the $12.5 million in Q1 2025) mainly due to Q1 2026 pipeline export sales at international pricing and lower costs due to the shut‑in;
Net cash flow from operating activities in Q1 2026 was $21.4 million (33% lower than the $32.0 million in Q1 2025) mainly from pipeline export interim payments. The decrease is due to timing of cash receipts for pipeline export sales, as well as higher expenditures related to drilling, debottlenecking and maintenance works on both blocks;
Adjusted EBITDAX¹ in Q1 2026 was $28.1 million (15% higher than the $24.5 million in Q1 2025) due to a combination of the effects described above and lower corporate costs;
At March 31, 2026, the Company had cash of $36.5 million and gross debt (corporate bond) of $143.8 million. Net debt2 was $107.2 million, and
At May 6, 2026, the Company has cash of $40.7 million and gross debt of $143.8 million. Net debt² is $103.1 million.
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1
Adjusted EBITDAX is a non-IFRS financial measure. Refer to "Non-IFRS Accounting Standards Measures" below for more information.
2
Net debt is a non-IFRS financial measure. Refer to "Non-IFRS Accounting Standards Measures" below for more information.
