CALGARY, Nov. 4, 2013 /CNW/ - Petromanas Energy Inc. ("Petromanas" or
the "Company") (TSXV: PMI) and Royal Dutch Shell plc ("Shell") today
announced positive test results from its Shpirag-2 well in Block 2-3,
which covers an area of 3,450 square kilometres onshore south-central
Testing operations commenced in mid-October following the arrival and
rig up of all necessary equipment. Following acid stimulation, the
Shpirag-2 well flowed naturally for 24 hours. Following initial clean
up and shut-in, the Company conducted an extended, three-day test.
During the extended test, the Shpirag-2 well flowed at rates of 1,500 to
2,200 barrels per day of oil equivalent (boe); 800 to 1,300 barrels per
day (bpd) of 35 to 37 degree API oil and 2 to 5 mmcfd of gas through
varying choke sizes, at wellhead pressures ranging from 1,700 to over
3,000psi. The gas oil ratio was in the range of 2,500 to 2,800 scf/bbl.
Lower than expected levels of hydrogen sulphide were observed (5,000
ppm) and, following the initial test, there was 0% water cut.
"These are compelling results from a well that, due to difficulties
encountered while drilling, is not the optimal wellbore into the
reservoir," said Mr. Glenn McNamara, CEO of Petromanas. "These test
results initially confirm the well's ability to flow light oil and
provide early validation of the potential of Block 2-3 and our
considerable investment to date in this asset. Given carbonate
reservoirs are dependent on fracture porosity, and well rates can vary
significantly across the reservoir, we are very encouraged to have
flowing oil at these rates from our first well."
"The results of the Shpirag-2 well are encouraging and support the
potential of this oil play in Albania," said Edwin Verdonk, Shell Vice
President Exploration Europe. "We look forward to appraisal efforts
next year to help us fully assess the volumes and production capability
of this reservoir."
Following the three-day test, the well has been shut in for a 30-day
period for pressure build-up. Detailed analysis of the test results has
started. The first appraisal well is planned at Shpiragu after
completion of the Molisht-1 exploration well which is currently
Shpirag-2 was drilled to a total depth of 5,553 metres, and tested 400
metres of the target carbonate reservoir. Based on the previously
drilled Shpirag-1 and the Company's current program at Shpirag-2,
Petromanas and Shell believe they have identified in excess of 800m of
oil column in fractured carbonate reservoirs at the Shpiragu structure.
Petromanas has a 25% working interest in Block 2-3 and is the operator.
Shell holds the remaining 75% working interest.
Blocks 2-3 Seismic Program
The Company's contractors are in the process of acquiring the last few
lines of seismic for its planned 450 km 2D seismic program. The
acquisition is expected to conclude before the end of the year with
seismic processing and interpretation expected to continue into 2014.
The Molisht-1 well was spud August 20, 2013 and conductor and surface
casing was set. The well is drilling ahead at a depth of approximately
1,400 metres. The Company expects to drill the well to a total depth of
approximately 5,500 metres.
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. For further
information please contact:
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
70 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
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,
assessment, and commerciality 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; 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
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 of the
Molisht wells at costs estimated and in the manner described in this
press release or at all. There is a specific risk that the Shpirag-2
well will not continue to produce at initial rates disclosed in this
press release. There is a specific risk that the Company may not be
able to complete the 2013 seismic program in the timeframe estimated in
this press release or at all. If the Company is unable to drill the
Molisht-1 well at the costs estimated or in the manner described in
this press release or at all, or if Shpirag-2 production is lower than
initial tests indicate, 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, 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.
Barrels of oil equivalent (BOEs) include oil, solution gas, associated
gas and condensate. BOEs may be misleading, particularly if used in
isolation. A BOE conversion ratio of 6 Mcf: 1 bbl has been used and is
based on an energy equivalency conversion method primarily applicable
at the burner tip and does not represent a value equivalency at the
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