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ShaMaran Identifies 2 New Oil Zones in Pulkhana Field

Source: www.gulfoilandgas.com 10/3/2011, Location: Middle East

ShaMaran Petroleum Corp. is pleased to provide the following operational update on the Pulkhana-9 appraisal well. Pulkhana-9 reached a total depth of 2,333 meters on July 23, 2011 in the Cretaceous. A comprehensive testing program of six well tests ("DST") has been completed and oil has been recovered in four separate reservoir intervals, including two new reservoirs that had not been included in the previous contingent resource estimates.

The zones confirmed by previous drilling, the Miocene Euphrates and Cretaceous Shiranish Formations and two new horizons, the Eocene Jaddala formation and an undifferentiated fractured Cretaceous formation below the Shiranish recovered oil on test. The total prospective pay based on petrophysical analysis of electric logs was over 800 meters in four separate reservoirs. Oil quality ranged from 28 to 34 degrees API. Due to a failure of an external casing packer in the lower zones and possible formation damage due to heavy mud weights, representative flow rates could not be established. The Company is currently planning to sidetrack the well to establish oil flow rates in the lower two zones using open hole "barefoot" testing which gives the greatest chance of success in fractured carbonate reservoirs.

Upon successful completion of testing, the Company plans to drill an additional Pulkhana appraisal well and has already commenced planning for an early production system for the field. ShaMaran President and CEO, Pradeep Kabra, commented, "We are encouraged by the addition of two new oil bearing reservoirs in the Pulkhana field. Efforts are now being focused to confirm that these reservoirs are capable of flowing at the same rates or better than previous wells drilled in the field area and in nearby new discoveries. We are also re-entering the Pulkhana–8 well which was drilled in 2006 in order to confirm the Shiranish reservoir in this portion of the field."

The Company has a sixty percent working interest and is Operator of the Pulkhana Block.

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