SNM: ShaMaran Reports Second Quarter 2026 Results

August 5, 2026

ShaMaran Petroleum Ltd. ("ShaMaran" or the "Company") (Euronext Growth Oslo:
SNM) (Nasdaq First North Stockholm: SNM) today released its financial and
operating results and related management's discussion and analysis ("MD&A") for
the three and six months ended June 30, 2026.

Garrett Soden, President and CEO of ShaMaran, commented: "During the second
quarter, ShaMaran completed the corporate continuance from Canada to Bermuda and
the change of our primary listing from Toronto to Oslo.  Unfortunately, the Iran
war continues to have a major impact on Kurdistan oil production with
international oil companies mostly shut-in since March 2026. However, the
formation of the new Iraqi government and Prime Minister Ali al-Zaidi's
commitment to resolve regional security issues has been a positive development
for the region. The closure of the Strait of Hormuz highlights the importance of
Iraq's northern export route through Kurdistan, with Iraq and Türkiye recently
signing a one-year extension to the Iraq-Türkiye pipeline agreement. 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, we are working with the Iraqi
State Organization for Marketing of Oil and the Iraqi Ministry of Oil to receive
the top-up payments due for our full entitlement of oil export sales now that
the international consultant's review is complete."


Corporate Highlights:

o	Production at both the Atrush and Sarsang blocks was temporarily shut-in from
March until June 2026 as a precaution due to the Iran war. Production and
pipeline exports restarted and gradually increased until another shut-in was
announced on July 20, 2026, due to the deterioration of the regional security
environment. Other international oil companies ("IOCs") in the region also
announced temporary production shut ins over the same period, 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");
o	International oil exports from the KRI through the ITP restarted on September
27, 2025, and have continued in line with the interim agreements executed
between the Kurdistan Regional Government ("KRG"), Government of Iraq and
several 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 recently extended to September 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 now that the review is complete.
o	On May 28, 2026, the Company announced completion of the corporate continuance
from Canada to Bermuda and the delisting of the Company's shares from the TSXV.
On June 5, 2026, the Company announced the first day of trading on the Euronext
Growth Oslo market ("EGO"); and
o	On June 2, 2026, in connection with the EGO listing requirements, the Company
announced placing 8,999,999 shares through a retail offering, raising
approximately $1.1 million in cash and welcoming more than 400 new shareholders.


Financial Highlights:

o	Revenue in Q2 2026 was $17.8 million (50% lower than the $35.4 million in Q2
2025) primarily due to the shut-in, partially offset by the impact of the
realization of Q1 2026 oil prices. The actual realized oil price in Q2 2026 was
considerably higher than the estimated price accrued in Q1 2026 due to the
timing of cargo liftings and the significant increase in oil price due to the
Iran war. Most of Q1 2026 oil exports were sold in cargos from Ceyhan at a
higher price during the second quarter; 
o	Oil sales in Q2 2026 averaged a net oil price of $84.23/bbl from the two
blocks on a combined basis (154% higher than the $33.12/bbl in Q2 2025) due to
international pricing since the restart of pipeline exports; 
o	Gross margin on oil sales in Q2 2026 was $13.3 million (4% higher than the
$12.8 million in Q2 2025) mainly due to Q2 2026 pipeline export sales at
international pricing and lower costs due to the shut-in; 
o	Net cash flow from operating activities in Q2 2026 was $2.2 million (92% lower
than the $26.5 million in Q2 2025) mainly due to the timing of cash receipts for
pipeline export sales and the production shut-in that resulted in no sales for
most of Q2 2026; 
o	Adjusted EBITDAX¹ in Q2 2026 was $11.9 million (46% lower than the $24.9
million in Q2 2025) due to a combination of the effects described above;
o	At June 30, 2026, the Company had cash of $29.0 million and gross debt
(corporate bond) of $143.8 million. Net debt  was $114.8 million, and
o	At August 5, 2026, the Company has cash of $24.8 million and gross debt of
$143.8 million. Net debt² is $119.0 million.


Operational Highlights:

o	At Atrush, average gross daily oil production in Q2 2026 was 1.2 Mbopd; 
o	At Sarsang, average gross daily oil production in Q2 2026 was 0.7 Mbopd;
o	Average gross daily oil production from Atrush and Sarsang in Q2 2026 on a
combined basis was 1.9 Mbopd (97% lower than the 63.8 Mbopd in Q2 2025) due to
the shut-in for the majority of Q2 2026; 
o	Average Company net daily oil production from Atrush and Sarsang in Q2 2026 on
a combined basis was 0.7 Mbopd (97% lower than the 22.7 Mbopd in Q2 2025) due to
the shut-in during Q2 2026;
o	Production at Atrush and Sarsang was suspended for most of the second quarter
of 2026 due to the regional security environment. After the first shut-in (early
March 2026 until late June 2026), the fields briefly resumed delivering
international exports via the ITP before being suspended again due to renewed
security concerns from July 20, 2026. Atrush briefly produced at more than 40.0
Mbopd in early July 2026. The damage assessment from drone attacks at Sarsang on
March 5, 2026, and April 1, 2026, is still ongoing; and
o	Operational plans for the remainder of 2026, including drilling and other
capital expenditures, remain contingent on the regional security environment.
The ITP agreement between Iraq and Türkiye was extended for one year on August
1, 2026. Negotiations are ongoing for a new agreement beyond July 2027. 


Subsequent Events:

o	On July 13, 2026, the Company announced that production and pipeline exports
had gradually increased following restart of operations at the Atrush and
Sarsang blocks; and 
o	On July 20, 2026, the Company announced that production and pipeline exports
at the Atrush and Sarsang fields were again temporarily shut-in due to the
deterioration of the regional security environment. Both the Atrush and Sarsang
blocks remain shut-in at the date of this press release due to the regional
security situation, and there is no certainty as to the duration of the shut-in.
HKN Energy Ltd. ("HKN"), the operator of the blocks, plans to restart production
as soon as safe and secure operations are possible.

Please see attached PDF to read the full announcement.
N Energy Ltd. ("HKN")\, the operator of the blocks\, plans to restart production\
as soon as safe and secure operations are possible.\
\
Please see attached PDF to read the full announcement.\