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ShaMaran Finishes Drilling & Testing of Pulkhana-9

Source: www.gulfoilandgas.com 12/16/2011, Location: Middle East

ShaMaran Petroleum Corp. 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 recognized 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 open hole "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.

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