CALGARY, Dec. 3, 2012 /CNW/ - Petromanas Energy Inc. ("Petromanas" or
the "Company") (TSXV: PMI) today announced the Juban-1 well located on
Block A onshore Albania has spud, set surface casing and is drilling
ahead. The Company intends to drill the 100% well to a target depth of
approximately 2,600 metres. Petromanas locally sourced a double land
rig with a 1,000 horsepower rating from Simmons Edeco Limited.
Drilling is expected to take approximately 30 days at an estimated cost
of US$9 million.
"Spudding the Juban-1 well is another important step forward in our 2012
drilling program," said Mr. Glenn McNamara, CEO of Petromanas. "Juban
is our shallowest prospect and drilling this prospect will allow us to
begin assessing the potential of the carbonates in the northern part of
the country, outside the areas of current production."
Drilling of the Shpirag-2 well continues to make progress. The Company
previously set casing to a depth of 3,414 metres and the hole is
currently in the Flysch shale above the target carbonate reservoir
zone. After reaching a depth of 4,465 metres the well experienced some
instability resulting in a sidetrack. The well is currently drilling
at a depth of approximately 4,230 metres. With recent tectonic activity
in the area impacting the stability of the Flysch shale, the Company is
evaluating drilling options including, among other things, the optimal
depth to set casing to put the unstable zone behind pipe. Estimated
well costs are currently US$39 million gross, US$7 million net to
Petromanas. The top of the target carbonate is expected to be
encountered at approximately 5,000 metres. The Company plans to
penetrate approximately 1,100 metres of carbonate to reach a target
depth of approximately 6,100 metres, which is anticipated to be reached
in late 2012 or early 2013. Testing will follow reaching total depth.
The Company has also initiated its 2012 2D seismic test program over
Blocks 2-3 using Geotec Spa of Italy. Petromanas is now shooting a
test seismic line that will help determine the final shot parameters
for the balance of the 400-500 kilometre program, expected to be
completed in 2013. The current activity is evaluating alternative shot
hole depths and charge sizes to optimize data quality and cost. The
test program results have the potential to reduce future seimic costs
in the area. Under the terms of the Company's Farm-Out Agreement with
Royal Dutch Shell plc, Shell will carry the first $20 million dollars
of this seismic program with any excess amount shared equally by both
Following ongoing discussions with the Albanian Government, Petromanas
has requested and is awaiting approval of a one-year extension to
complete its commitments for Period 2 under the Production Sharing
Contract ("PSC") for Blocks D-E. The Company previously provided the
Albanian Government with a standby letter of credit for $6.3 million in
support of its Period 2 performance guarantee, which remains in force.
If the extension is granted, Petromanas would have until December 25,
2013 to complete its obligations on Blocks D-E under the PSC. The
Company intends to use the information gathered from its drilling
programs at both Shpirag and Juban to determine how best to meet its
commitments for Period 2. The Company considers Blocks D-E to be of
higher risk than Blocks 2-3 and relatively costly to explore based on
the lower prospective resource volumes allocated to the Papri prospect.
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.
The foregoing information may contain forward-looking information
relating to the future performance of the Company, including but not
limited to the timing and drilling of the Juban-1 and Shpirag-2 wells,
the Company's current exploration activities, including the 2012-13
seismic program and receipt of the one-year extension in respect of the
Company's commitment for Period 2 under PSC on Blocks D-E. 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 our 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 Company's ability to identify, attract, obtain and retain
industry partners, access to capital, access to drilling rigs, seismic
equipment and operational personnel, 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, risks
associated with exploration activities 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). 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.
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