Petromanas announces spudding of Molisht-1; testing of Shpirag-2; files second quarter results
CALGARY, Aug. 22, 2013 /CNW/ - Petromanas Energy Inc. ("Petromanas" or the "Company") (TSXV: PMI) today announced the spudding of the Molisht-1 well onshore Albania and provided an update on its other exploration activities on Blocks 2-3.
Road and well site construction at Molisht-1 advanced rapidly through late July and the drilling rig was mobilized to the drilling location in early August. Molisht-1 lies approximately 17 kilometres south of Shpirag-2 and was spud on August 20, 2013 (CET). The Company expects to drill the well to a total depth (TD) of approximately 5,500 metres and drilling operations are expected to take approximately nine months. The anticipated gross cost of drilling the well to TD, including road and lease construction, is approximately USD $62 million. Petromanas' estimated net drilling cost is USD $3 million.
The Shpirag-2 well reached total depth of 5,547 meters in late June and the Company subsequently set the production liner and mobilized the rig to Molisht-1. The Company intends to conduct a controlled test of approximately 350-400 metres of the target carbonate zone. Timing for the commencement of testing operations is now expected to be mid-September 2013, with testing running into October. Results of testing are expected in the fourth quarter.
"Our construction contractor worked diligently to advance road and lease construction at Molishti so that we could promptly mobilize the drilling rig following its release from Shpirag-2, minimizing downtime," said Mr. Glenn McNamara, CEO of Petromanas. "Spudding the Molisht-1 well and the stimulation and testing of the Shpirag-2 well are both key activities in our exploration program in Blocks 2-3. These wells target two potentially significant reservoirs and will provide the Company with information to prepare a preliminary assessment of the commercial potential of this asset."
Blocks 2-3 Seismic Program
The investigation being conducted by the Investigation Board of the Albanian Ministry of Transport following the helicopter incident involving a third party contractor announced on August 13, 2013 is ongoing. Petromanas and its contractors and partners have mobilized their own investigative staff to the crash site and are cooperating with the government investigation. While ground operations have resumed, helicopter operations will remain suspended until the investigation has been completed. At the time of the incident, shooting for the planned 2013 seismic program was approximately 60% complete and is expected to finish in November 2013.
Filing of Q2 2013 Financial Results
The Company has filed its financial statements and related Management's Discussion and Analysis ("MD&A") for the three months ended June 30, 2013 on SEDAR. The financial statements and MD&A will be available on the Company's website and at www.SEDAR.com.
About Petromanas Energy Inc.
Petromanas Energy Inc. is an international oil and gas company focused on the exploration and development of its assets in Albania. Petromanas, through its wholly-owned subsidiary, holds two Production Sharing Contracts ("PSCs") with the Albanian government. Under the terms of the PSCs, Petromanas has a 100% working interest in Blocks D and E and a 25% working interest in Blocks 2-3 that comprise more than 1.1 million gross acres across Albania's Berati thrust belt. Petromanas also holds exploration assets in France and Australia.
This press release contains forward-looking information within the meaning of applicable securities laws and is based on the expectations, estimates and projections of management of Petromanas as of the date of this news release unless otherwise stated. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information. More particularly and without limitation, this press release contains forward-looking information concerning the future performance of the Company, including but not limited to the testing of the Shpirag-2 well, the drilling and cost of the Molisht-1 well and the timing and completion of the Company's 2013 seismic program. In respect of the forward-looking information concerning the future performance of the Company, Petromanas has provided such in reliance on certain assumptions that it believes are reasonable at this time, including assumptions as to the timing and drilling of wells and the Company's ability to meet its operational commitments, the ability of Petromanas to receive, in a timely manner, the necessary regulatory and governmental operational approvals; the timely and successful completion of the investigation by the Albanian Investigation Board; and expectations and assumptions concerning, among other things: commodity prices and interest and foreign exchange rates; planned construction activities, capital efficiencies and cost-savings; applicable tax laws; the sufficiency of budgeted capital expenditures in carrying out planned activities; and the availability and cost of labour and services. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release.
Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the industries in which Petromanas operates in general such as operational and exploration risks; delays or changes in plans with respect to growth projects or capital expenditures; delays in obtaining governmental approvals, permits or financing or political risks in the completion of development or construction activities; access to drilling rigs, completion equipment, seismic equipment and operational personnel; costs and expenses; political risks; risks of litigation; title disputes; health, safety and environmental risks; commodity price, interest rate and exchange rate fluctuations; environmental risks; competition; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws and environmental regulations. There is a specific risk that the Company may be unable to complete the drilling, completion and testing of the Shpirag-2 and Molisht-1 wells at costs estimated and in the manner described in this press release or at all. There is a specific risk that the Company may not be able to complete the 2013 seismic program at the costs estimated in this press release or at all. If the Company is unable to complete and test the Shpirag-2 well at costs estimated and in the manner described in this press release or at all, there could be a material adverse impact on the Company and on the value of the Company's securities.
Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on other factors that could affect the operations or financial results of Petromanas are included in reports on file with applicable securities regulatory authorities, including but not limited to; Petromanas' Annual Information Form for the year ended December 31, 2012 which may be accessed on Petromanas' SEDAR profile at www.sedar.com.
The forward-looking information contained in this press release is made as of the date hereof and Petromanas undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Petromanas Energy Inc.For further information:
Glenn McNamara, CEO
Bill Cummins, CFO
Petromanas Energy Inc.
Suite 1720, 734 - 7th Avenue SW
Canada T2P 3P8
Tel: +1 403 457 4400
Fax: +1 403 457 4480
The Equicom Group
300 - 5th Avenue SW, 10th Floor
Canada T2P 3C4
Tel: +1 403 218 2835
Fax: +1 403 218 2830