ShaMaran Petroleum Corp. has reported a robust second quarter for 2025, with significant increases in revenue and production despite the ongoing Iraq-Turkey pipeline closure, which has impacted regional oil exports since March 2023.

Garrett Soden, ShaMaran's President and CEO, expressed optimism over the company’s performance: “We remain focused on generating strong cash flow and accelerating debt repayment, as shown in the Q2 2025 results.” He added that the company had “reduced net debt by almost 50%, providing a solid base for potential future shareholder distributions.”

Financial Highlights:

• Revenue rose to $35.4 million in Q2 2025, up 56% from $22.6 million in Q2 2024.
• Gross margin on oil sales jumped 73% to $12.8 million.
• Free cash flow before debt service increased 66% to $27.9 million.
• Adjusted EBITDAX was $24.9 million, a 59% year-over-year increase.

ShaMaran’s financial strength was further demonstrated by a $29.4 million bond repayment in April and a $5 million loan repayment in May. As of June 30, 2025, the company held $67.2 million in cash and had reduced net debt to $87.2 million.

Operational Strength:
Oil production also surged. The company reported an average daily gross production of 63.8 thousand barrels of oil per day (Mbopd) from the Atrush and Sarsang blocks, a 16% rise from the same quarter in 2024. ShaMaran’s net production increased by 88% due to a higher working interest in the Atrush Block.

Security Incident and Recovery:
On July 15, a suspected drone strike led to the temporary shutdown of operations at the Sarsang Block. Fortunately, no injuries were reported. Three storage tanks were damaged, and although Atrush was not impacted, both fields were shut down as a precaution.

Production has since resumed. Atrush is operating at full capacity, while Sarsang is running at a reduced rate. The company expects half of Sarsang’s capacity to remain offline until late October.

Looking Ahead:
ShaMaran’s board has approved repayment of the remaining $10.6 million Nemesia loan, which will reduce gross debt to $143.8 million. The company is also continuing efforts to support the reopening of the Iraq-Turkey pipeline.

Soden emphasized: “We continue to work with industry partners and the host government towards a lasting commercial solution for the Iraq-Turkey pipeline reopening.”

ShaMaran plans to release its Q3 2025 results on November 5.