CALGARY, Feb. 9, 2012 /CNW/ - Petromanas Energy Inc. ("Petromanas" or
the "Company") (TSXV: PMI) today announced it has entered into a
definitive farm out agreement (the "Agreement") with a wholly owned
subsidiary of Royal Dutch Shell plc ("Shell"), whereby Shell will farm
into the Company's rights on onshore exploration Blocks 2-3 (the
"Blocks") comprising approximately 852,000 acres onshore Albania. Under
the terms of the Agreement, Shell will acquire a 50% participating
interest in the Blocks in exchange for payments and carried costs up to
US$50.3 million. Petromanas will continue to act as operator of the
"We are very pleased to have Shell as a joint venture partner. They
bring exceptional technical capabilities and substantial resources to
our new relationship," said Mr. Glenn McNamara, CEO of Petromanas. "We
believe that partnering with a global leader like Shell provides a
validation of the potential of our Albanian assets and the exploration
work we have completed to date. Our 2012 drilling program remains
unchanged and is moving ahead as planned from a position of enhanced
strength and we expect the addition of a further seismic program to
accelerate the exploration and development of the Blocks."
Under the terms of the Agreement, Shell would carry Petromanas on the
following items: a work program up to US$22.5 million in the first
exploration period and subject to entering into the second exploration
period, a second exploration well. Any potential excess costs of the
work program over the carried amounts shall be jointly paid by both
parties in proportion to their participating interest. In addition,
Shell will pay a cash consideration for a total amount of US$16.3
million, of which US$11 million is refundable to Shell should
Petromanas secure a partner for the other Petromanas blocks during the
current exploration period.
The Agreement is subject to customary closing conditions including the
receipt of all necessary regulatory and government approvals.
Royal Dutch Shell plc is incorporated in England and Wales, has its
headquarters in The Hague and is listed on the London, Amsterdam and
New York stock exchanges. Shell companies have operations in more than
90 countries and territories with businesses including oil and gas
exploration and production; production and marketing of liquefied
natural gas and gas to liquids; manufacturing, marketing and shipping
of oil products and chemicals and renewable energy projects. For
further information, visit www.shell.com.
About Petromanas Energy Inc.
Petromanas 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.
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.
The foregoing information may contain forward-looking information
relating to the future performance of the Company, including but not
limited to its planned 2012 drilling program, the Agreement and related
activities, including regulatory and government approvals. Forward
looking information is subject to a number of known and unknown risks,
uncertainties and other factors that may cause actual results to differ
materially from those anticipated in such forward looking statements.
Such risks and other factors include, among others, the actual results
of exploration activities, changes in world commodity markets or equity
markets, the risks of the petroleum industry including, without
limitation, those associated with the environment, delays in obtaining
governmental approvals, permits or financing or political risks in the
completion of development or construction activities, title disputes,
change in government and changes to regulations affecting the oil and
gas industry, and other risks and uncertainties detailed from time to
time in the Company's filings with the Canadian securities
administrators (available at www.SEDAR.com). There is a risk that the commencement of the initial well could be
delayed if unforeseen circumstances arise that delay the rig's release
from the current well that is being drilled for another customer.
There is a specific risk that the Company will not receive the
government and regulatory approvals which are a condition to the
closing of the transactions contemplated by the Agreement.
Forward-looking statements are made based on various assumptions and on
management's beliefs, estimates and opinions on the date the statements
are made. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those described in the forward-looking
information contained herein. The Company undertakes no obligation to
update forward-looking statements if these assumptions, beliefs,
estimates and opinions or other circumstances should change, except as
required by applicable law.
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