CALGARY, March 14, 2013 /CNW/ - Petromanas Energy Inc. ("Petromanas" or
the "Company") (TSXV: PMI) today provided an update on the drilling of
its Shpirag-2 well.
Following the sidetrack announced on February 11, 2013, the Company took
a number of additional steps to mitigate instability in the lower
flysch shale zone above the target carbonate reservoir. Petromanas
believes these measures contributed to improved hole stability and
afforded a period of solid drilling progress that saw the well reach a
depth of approximately 5,275 metres in the upper carbonate zone.
Subsequently, the bit became stuck and additional hole instability was
experienced. During drilling, and prior to the loss of circulation, the
Company observed indications of the presence of oil and gas in the
drilling cuttings from the upper carbonate.
On this basis, the Company is sidetracking the well at a depth of
approximately 4,810 metres. After the well re-enters the upper
carbonate section, the Company intends to set casing from the previous
casing depth of approximately 4,750 metres to put the lower zone of
unstable flysch shale behind pipe.
"We have seen positive early indications with respect to the presence of
hydrocarbons but still face challenges with the very complex and active
geology of the region, which continues to cause instability in the open
portion of the hole," said Mr. Glenn McNamara, CEO of Petromanas.
"While our preference was to drill through the carbonate with a larger
hole, we feel it is prudent at this point to put the entire flysch
shale zone behind casing so that we can avoid further instability above
the target and focus on penetrating the carbonate zone to a sufficient
depth to complete a better assessment of its potential. Shell continues
to actively participate in our initiatives on Blocks 2-3 and brings
extensive carbonate drilling and completions experience to the project
gathered from operations both regionally and around the world."
Once the Shpirag-2 well reaches total depth the Company plans to log,
complete and flow test the well. Planning and logistics in preparation
for well completion and test operations have been finalized. Total
costs to drill the well to this point are approximately US$53 million
or approximately US$14 million net to Petromanas. Management estimates
the total costs to drill the well to the target depth of 5,800-6,000
metres at approximately $67 million gross.
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 three Production
Sharing Contracts ("PSCs") with the Albanian government. Under the
terms of the PSCs, Petromanas has a 100% working interest in Blocks A,
B, D, and E and a 50% working interest in Blocks 2 and 3 that comprise
more than 1.4 million gross acres across Albania's Berati thrust belt.
Petromanas also holds exploration assets in France and Australia. For
further information please contact:
This press release contains forward-looking information within the
meaning of applicable securities laws and are 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
timing, costs and drilling of the Shpirag-2 well, the costs of
drilling, the ability of the Company to address technical, geological
and operational challenges in the drilling, logging, completion and
testing of the Shpirag-2 well, the presence of hydrocarbons and the
Company's current exploration activities. 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, the planned seismic
program 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; and expectations and
assumptions concerning, among other things: commodity prices and
interest and foreign exchange rates; planned synergies, 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 address future events and conditions,
by their very nature they involve 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, seismic equipment and
operational personnel; costs and expenses; political risks; 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 well at costs estimated and in the manner
described in this press release or at all. If the Company is unable to
drill, 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
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, 2011 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
Hamid Mozayani, COO
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