Petromanas Announces AGM Voting Results, Filing of Q1 2014 Financial Results and Update on Blocks D-E Onshore Albania
CALGARY, May 22, 2014 /CNW/ - Petromanas Energy Inc. ("Petromanas", or the "Company") (TSXV:PMI) today announced the results of voting at its Annual General Meeting of shareholders, the filing of its financial results for the first quarter of 2014, and an update on Blocks D-E onshore Albania.
AGM Voting Results
The Company is pleased to announce that each of Glenn McNamara, Verne Johnson, Wesley Clark, Frank Giustra, Gordon Keep, Gerard Protti, and Jeffrey Scott were elected as directors of the Company at its Annual General Meeting of shareholders held today. The Company has posted the presentation that was provided to shareholders after the Annual General Meeting of Shareholders on its corporate website as well as a video discussing some of its Albanian operations.
Filing of Q1 2014 Financial Results
The Company has filed its financial statements and related Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2014 on SEDAR. The financial statements and MD&A will be available on the Company's website or at www.SEDAR.com.
On May 15, 2014, the Albanian National Agency of Natural Resources formally refused the Company's request to enter into the third exploration period for Blocks D-E with a reduced financial commitment. The Company has until August 11, 2014, to provide a bank guarantee for USD $6.3 million or relinquish the blocks. As a result, the Company recorded an impairment expense of its carrying value of Blocks D-E of approximately USD $23 million in the first quarter and considers it unlikely that it will provide the requested guarantee. Due to the high risk and limited prospectivity of Blocks D-E, the Company has chosen to allocate the capital to Blocks 2-3, where Petromanas has formally announced a discovery to the Albanian government.
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 appraisal, assessment and commerciality of the Shpirag discovery, the use of the Company's capital resources and the implications that may result if the Company decides to enter into a third exploration period under the terms of the PSC governing Blocks D-E. 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 capital and operational commitments, the ability of Petromanas to receive, in a timely manner, necessary regulatory and governmental operational approvals; 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 or the failure to obtain 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 appraisal of the Shpirag-2 discovery will not provide results which support commercial development of the Shpirag discovery. If the appraisal program at Shpirag-2 does not support commercial development of the discovery, there could be a material adverse impact on the Company and on the value of the Company's securities. If the Company elects not to enter the third exploration phase under the terms of the PSC governing Blocks D-E there is a specific risk that the Company may be required to relinquish Blocks D-E.
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, 2013, 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