SHAMARAN EXERCISES OPTION TO CONVERT TAZA BLOCK (FORMERLY BLOCK K42) TO PRODUCTION SHARING CONTRACT

July 28th, 2011 (SNM-TSXV & OMX: SNM). ShaMaran Petroleum Corp. ("ShaMaran" or
the "Company") (TSX VENTURE:SNM)(OMX: SNM) is pleased to announce that its
wholly owned subsidiary ShaMaran Petroleum BV (“ShaMaran BV”) has exercised its
option under an Option Agreement signed in July 2009 with the Kurdistan
Regional Government (KRG), to enter into a Production Sharing Contract (PSC) in
respect of the Taza Block (formerly Block K42) in the Kurdistan Region of Iraq,
and that this has now been approved.


ShaMaran BV holds a 20% working interest in the PSC, and OSIL is the operator
with a 60% working interest, while the KRG holds a 20% working interest, with
costs carried by ShaMaran BV and OSIL.

The 511 square kilometres Taza Block lies between the Pulkhana Block to the
southwest and the Kormor block operated by Dana Gas to the northeast. Under the
Option Agreement, the Joint Venture acquired 232 line-kilometres of 2D seismic
data in 2010, which identified a significant four-way dip closed structure.
This closure lies on structural trend with the giant producing Jambur field to
the northwest, with reported reserves of over 1 billion barrels of oil, and the
recently announced Western Zagros Sarqala oil discovery to the southeast, with
reported test rates of over 9,000 barrels of oil per day from the Jeribe
formation. The Jeribe will be one of the main targets for the upcoming
exploration well on the identified prospect which is expected to be drilled in
2012.

Pradeep Kabra, President and CEO of ShaMaran, commented, "We are very pleased
to have signed the Taza Block PSC. Taza is very prospective block in the
prolific petroleum province of the Kurdistan Region of Iraq.  We look forward
to continuing our partnership with Oil Search in the exploration of this
exciting block."

 

About ShaMaran

ShaMaran Petroleum Corp. is a Kurdistan focused oil development and exploration
vehicle with four projects in the region: the Pulkhana development/appraisal
block, the Arbat oil discovery, and the Atrush and Taza (formerly Block K42)
exploration blocks. These projects are nearby and on trend with existing fields
and recent discoveries.

Kurdistan lies within the northern extension of the Zagros Folded Belt. The
area is highly underexplored and is currently undergoing a significant
exploration and development campaign by over 30 mid to large size international
oil companies.

ShaMaran Petroleum is a Canadian oil and gas company listed on the TSX Venture
Exchange under the symbol "SNM" as well as NASDAQ OMX First North under the
symbol "SNM".

 

On behalf of the Board,

Pradeep Kabra,

President and CEO

 

This press release contains statements about expected or anticipated future
events and financial results that are forward-looking in nature and, as a
result, are subject to certain risks and uncertainties, such as legal and
political risk, civil unrest, general economic, market and business conditions,
the regulatory process and actions, technical issues, new legislation,
competitive and general economic factors and conditions, the uncertainties
resulting from potential delays or changes in plans, the occurrence of
unexpected events and management's capacity to execute and implement its future
plans. Actual results may differ materially from those projected by management.
Further, any forward-looking information is made only as of a certain date and
the Company undertakes no obligation to update any forward-looking information
or statements to reflect events or circumstances after the date on which such
statement is made or reflect the occurrence of unanticipated events, except as
may be required by applicable securities laws. New factors emerge from time to
time, and it is not possible for management of the Company to predict all of
these factors and to assess in advance the impact of each such factor on the
Company's business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those contained in
any forward-looking information.

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.

 

FOR FURTHER INFORMATION PLEASE CONTACT:

ShaMaran Petroleum Corp. Keith Hill Chairman (604) 806-3583 khill@namdo.com

ShaMaran Petroleum Corp. Pradeep Kabra President and CEO 0041 22 560 8605
pradeep.kabra@shamaranpetroleum.com

ShaMaran Petroleum Corp. Sophia Shane Corporate Development (604) 689-7842
(604) 689-4250 (FAX) sophias@namdo.com www.shamaranpetroleum.com