The company reported a 56% year-over-year revenue increase and has cut its net debt by nearly half over the past year, showcasing robust financial health despite regional challenges.
CALGARY, August 6, 2025 – ShaMaran Petroleum Corp. (TSXV: SNM, Nasdaq First North: SNM) today announced impressive financial and operating results for the second quarter of 2025, highlighting significant revenue growth, strong cash flow, and a dramatically improved balance sheet.
In a statement released today, the Canadian oil and gas company revealed a 56% surge in revenue for the second quarter, reaching $35.4 million compared to $22.6 million in the same period last year. This growth was driven by higher local oil sales and an increased working interest in the Atrush Block in the Kurdistan region of Iraq.
Garrett Soden, President and CEO of ShaMaran, emphasized the company’s successful strategy. “We remain focused on generating strong cash flow and accelerating debt repayment, as shown in the Q2 2025 results,” he commented. “Over the last year, we have reduced the Company’s net debt by almost 50%, providing a solid base for potential future shareholder distributions.”
Key Financial and Corporate Highlights
ShaMaran’s Q2 report demonstrated financial strength across several key metrics:
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Gross Margin: Rose by 73% to $12.8 million, up from $7.4 million in Q2 2024.
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Free Cash Flow: Generated $27.9 million in free cash flow before debt service, a 66% increase year-over-year.
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Adjusted EBITDAX: Climbed 59% to $24.9 million, indicating strong operational profitability.
A cornerstone of the company’s recent success has been its aggressive debt management. In April, ShaMaran repaid $29.4 million of its corporate bond. In May, it further simplified its balance sheet by repaying $5.0 million of a related-party loan. The company’s Board has since authorized the full repayment of the remaining $10.6 million balance of this loan, which will further reduce its gross debt to $143.8 million.
These actions, combined with strong cash generation, have reduced the company’s net debt to $87.2 million as of June 30, 2025, a significant decrease from $179.0 million a year prior.
Operational Strength and Production Growth
On the operational front, ShaMaran reported a substantial increase in production.
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Company Net Production: Average daily oil production nearly doubled, jumping 88% to 22,700 barrels per day (bopd) in Q2 2025, largely due to the company’s increased working interest (from 27.6% to 50%) in the Atrush Block.
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Total Field Production: Combined average production from the Atrush and Sarsang blocks was 63,800 bopd, a 16% increase from Q2 2024.
Navigating Regional Challenges
The company’s strong performance comes amid persistent regional challenges. The Iraq-Türkiye pipeline has remained closed since March 2023, impacting export routes for oil producers in the region. Soden confirmed that ShaMaran “continue[s] to work with industry partners and the host government towards a lasting commercial solution” for the pipeline’s reopening.
Additionally, the company reported a temporary production shut-in at both the Atrush and Sarsang blocks in July 2025 as a precautionary measure following a suspected drone strike at a Sarsang facility. While the Atrush Block was undamaged and has returned to full capacity, the Sarsang Block is operating at a reduced rate, with full capacity not expected to be restored until late October 2025.
Despite these headwinds, ShaMaran’s robust Q2 results and proactive debt reduction have positioned the company for continued financial strength and potential future returns for its shareholders. The company plans to release its third-quarter results on November 5, 2025.
