ShaMaran Announces Investment in Iraq and Contemplated Bond Issuance

October 20, 2026

Hamilton, Bermuda - ShaMaran Petroleum Ltd. ("ShaMaran" or the "Company")
(Euronext Growth Oslo: SNM) (Nasdaq First North Stockholm: SNM) announces the
expansion of the Company's strategic collaboration with HKN Energy ("HKN") into
Federal Iraq. Building on their joint ventures across the Atrush and Sarsang oil
fields in the Kurdistan Region of Iraq, HKN and ShaMaran are extending their
cooperation into Federal Iraq through the Hamrin oil development and production
contract ("DPC").

As part of this expansion, ShaMaran will have a 25% shareholding in HKN Hamrin
Ltd. (the "Hamrin JV"), the joint venture company holding 100% of the Hamrin
DPC. HKN, as the operator of the field, will leverage its operational expertise
and established relationship with ShaMaran to advance a major long-term
development program.

The Hamrin field is a large discovered and producing oil field previously
operated by North Oil Company, an Iraqi state-owned oil company. HKN and
ShaMaran will further develop the field with the aim of increasing production
above the current 20 Mbopd to maximize recovery over the 25-year term of the
DPC. The operator's and management's current estimate of remaining gross
reserves and resources is in the range of 500 million to one billion barrels.
The initial phase of development will target lifting field production to
approximately 60 Mbopd by 2028. Further phases of development could target more
than doubling those initial production levels, with currently estimated capex
for later phases in the range of $2-3 per incremental barrel.

Garrett Soden, Chief Executive Officer of ShaMaran, commented, "The Hamrin
investment is a natural extension of our cooperation with HKN, the operator of
our two existing assets in the Kurdistan Region of Iraq. The Hamrin field in
Federal Iraq is complementary to our existing Kurdistan production and reserves
profile, and we expect material synergies from having the same team operate all
three assets. Together with HKN, we are committed to increasing Hamrin
production to create significant value for Iraq and our shareholders." 

The Hamrin JV farm-in consideration comprises a $35 million carry by ShaMaran of
HKN's share of initial costs in the Hamrin co-venture, with a further $15
million payable out of future cash flow once ShaMaran has recovered its initial
investment and carry in full. 

Financing - Contemplated Bond Issuance

Elvis Pellumbi, Chief Financial Officer of ShaMaran, commented, "On the back of
the attractive Hamrin investment, we are looking to raise a new bond to better
reflect the improved credit profile of our expanded asset portfolio, fund Hamrin
growth capex and reduce interest costs. We see increased near-term cash flow
from our existing assets due to the tri-party export agreement coupled with an
enhanced long-term outlook from the addition of future Hamrin cash flows."

ShaMaran has mandated Pareto Securities AS to be sole bookrunner and manager for
a contemplated bond of up to $200 million in order to refinance its existing
2029 bond (ISIN NO0011057622) that has approximately $144 million currently
outstanding. The proceeds from the new bond will be used to fund ShaMaran's
share of the Hamrin investment and for general corporate purposes. The Company
will host fixed income investor meetings, and a bond issuance may follow subject
to market conditions and acceptable terms. It is the Company's intention to
exercise the applicable call option in the existing bond upon successful
issuance of the contemplated new bond. 

ShaMaran to combine with Gulf Keystone Petroleum Ltd. ("Gulf Keystone") 

ShaMaran and Gulf Keystone today announced that they have signed a merger
agreement and a combination agreement to combine their businesses and create a
platform for growth in the Kurdistan Region of Iraq and Federal Iraq (the
"Transaction"). A copy of the press release can be found at
www.shamaranpetroleum.com.


About ShaMaran Petroleum Ltd.

ShaMaran is an independent oil and gas company with non-operated stakes in three
fields in Iraq. The Company indirectly holds a 50% working interest in the
Atrush Block and an 18% working interest in the Sarsang Block, both in the
Kurdistan Region of Iraq. The Company will also hold a 25% interest in the
Hamrin JV, which holds the Hamrin DPC in Federal Iraq. The Company is listed in
Oslo on Euronext Growth and in Stockholm on Nasdaq First North (ticker "SNM").
ShaMaran is part of the Lundin Group of Companies.

Elvis Pellumbi, CFO, +41 22 560 8600, info@shamaranpetroleum.com,
www.shamaranpetroleum.com 



This information is information that ShaMaran Petroleum Ltd. is obliged to make
public pursuant to the EU Market Abuse Regulation. The information was submitted
for publication, through the contact person set out above, at 8:00 CET on
October 20, 2026.

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act. 

The Company's certified advisor on Nasdaq First North Growth Market is FNCA
Sweden AB.

 Forward-Looking Statements

Matters discussed in this announcement may constitute forward-looking
statements. The use of any of the words "will", "expected", "planned" and
similar expressions and statements relating to matters that are not historical
facts are intended to identify forward-looking information and are based on the
Company's current belief or assumptions as to the outcome and timing of certain
future events. Certain information set forth in this news release contains
forward-looking statements. 
he outcome and timing of certain\
future events. Certain information set forth in this news release contains\
forward-looking statements. \