SHAMARAN PETROLEUM FINISHES DRILLING AND TESTING THE PULKHANA-9 GEOLOGICAL SIDETRACK

December 16, 2011 (TSXV-SNM, OMX First North-SNM)… ShaMaran Petroleum Corp. 
("ShaMaran" or the "Company") provides the following operational update on the
Pulkhana-9ST2 geological sidetrack.


The Pulkhana-9 original hole reached a Total Depth ("TD") of 2333 meters in the
Cretaceous Balambo formation. A comprehensive testing program of six well tests
(“DST”) recovered oil from four separate reservoir intervals, including two new
reservoirs that predrilling had not been recognised as having resource
potential.

Due to the inability to obtain sustained flow rates which are suspected to be
due to drilling complications,  the Company opted to sidetrack the well
targeting the lower two zones (Shiranish and Balambo formations) using openhole
“barefoot” testing.

The well was sidetracked successfully and during drilling, both the Shiranish
and Balambo fractures provided significant gas peaks with oil recovered at
surface. Under test both formations flowed limited quantities of 30 to 33
degree API oil to surface, despite the fact that the Shiranish zone tested at
rates of 600 to 2450 barrels of oil per day from previous wells in the field.

The rig will now suspend the well and move to the Pulkhana-10 well, which will
appraise the proven Euphrates reservoir and the new Jaddala oil reservoir.

ShaMaran President and CEO Pradeep Kabra commented “The results show the
complicated nature of testing the Cretaceous fracture system in the Shiranish
and Balambo formations. Both formations are oil bearing and studies are ongoing
to determine the optimum testing and development techniques. The focus for
ShaMaran’s next two wells will be the volumetrically significant shallower
Tertiary reservoirs of the Euphrates and Jaddala which appear to have
significantly better matrix porosity.”

The Company has a sixty percent working interest and is Operator of the
Pulkhana 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 Atrush oil discovery, and the Arbat and Taza exploration blocks.
These projects are nearby and on trend to 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

 

Certain statements made and information contained in this press release
constitute “forward-looking information” (within the meaning of applicable
Canadian securities legislation), including statements about expected or
anticipated future events and financial results that are forward-looking in
nature.  Forward-looking statements include, but are not limited to, statements
with respect to estimates of reserves and or resources, future production
levels, future capital expenditures and their allocation to exploration and
development activities, future drilling and other exploration and development
activities, ultimate recovery of reserves or resources and dates by which
certain areas will be explored, developed or reach expected operating
capacity. 

Forward-looking statements 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,
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 statements are 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 to 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 statements.

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 Petroleum's Certified Advisor on NASDAQ OMX First North is E. Öhman
J:or Fondkommission AB (Pareto Ohman), part of the Pareto Securities Group.

 

FOR FURTHER INFORMATION PLEASE CONTACT: ShaMaran Petroleum Corp. Keith Hill
Chairman (604) 806-3583 khill@namdo.com

or

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

or

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