CALGARY, Nov. 5, 2012 /CNW/ - Petromanas Energy Inc. ("Petromanas" or the "Company") (TSXV: PMI) today provided an update on various operational and strategic initiatives.
Petromanas continues to progress its 2012 business plan concurrently on several initiatives.
Drilling of the Shpirag-2 well is progressing; the Company has set production casing to a depth of 3,414 metres and the hole has reached a depth of approximately 4,050 metres. The top of the target carbonate is expected to be encountered at approximately 5,000 metres. Drilling plans are to penetrate approximately 1,100 metres of carbonate to the target depth of approximately 6,100 metres, which is anticipated to be reached in either late 2012 or early 2013. Testing will follow reaching total depth. The Albanian Prime Minister, Sali Berisha, visited the Shpirag-2 wellsite on October 27, 2012 to observe the Company's operations. During a speech at the wellsite, the Prime Minister thanked Petromanas and Shell for their loyalty toward Albania and the investment which the companies have made in the country. He wished the companies success in the drilling of the Shpirag well.
The Company has completed all necessary logistical preparations and initiated its 2012-13 seismic program over Blocks 2-3. Petromanas is initially shooting two lines of 2D seismic that will help determine the final shot parameters for the balance of the 400-500 kilometre initiative, expected to be completed in 2013. Shell will carry the first $20 million dollars of this seismic program with any excess amount shared equally by both parties.
The Company is completing its preparations to spud the Juban-1 well located on Block A, onshore Albania, pending the release of the rig from its current assignment. Petromanas locally sourced a double land rig with a 1,000 horsepower rating. Drilling is currently expected to begin in mid-November and take approximately 30 days at an estimated cost of $9 million. The Company intends to drill the well to a target depth of approximately 2,600 metres.
"We are currently advancing multiple initiatives from our 2012 exploration program in parallel," said Mr. Glenn McNamara, CEO of Petromanas. "Our near-term focus remains on drilling and testing the Shpirag and Juban prospects so we can more fully assess the potential of the hydrocarbon system in the carbonates. Results from these wells will be an important factor in determining our future exploration strategy in Albania. In addition, we have worked closely with Shell to initiate a seismic program to increase our knowledge of the subsurface in Blocks 2-3 and advance the exploration and development program on those blocks."
Petromanas is in ongoing discussions with the Albanian Government with the goal of suspending the commitment period on Blocks D-E for one year, following delays in receiving construction permits which made drilling the commitment well before the December 25, 2012 deadline unachievable. There is no guarantee that the Albanian Government will agree to suspend the commitment period for one year or at all. If the Albanian Government does not suspend the commitment period, Blocks D-E will no longer be in good standing and Petromanas may lose its 100% interest in Blocks D-E and its $6 million performance guarantee. Alternatively, the Albanian Government could request Petromanas to provide a new bond to retain its interest in Blocks D-E. The Company considers Blocks D-E to be of higher risk than Blocks 2-3 and relatively costly to explore.
As previously disclosed, Petromanas and Gallic Energy Ltd. ("Gallic") have entered into an arrangement agreement whereby Petromanas will acquire all of the issued and outstanding class A shares of Gallic in exchange for common shares of Petromanas (the "Arrangement"). An information circular was mailed to Gallic shareholders and warrantholders on November 2, 2012 in connection with the annual and special meeting of Gallic shareholders and warrantholders to be held on November 29, 2012. Petromanas and Gallic continue to pursue the necessary approvals required to complete the acquisition of Gallic by Petromanas. The Arrangement is expected to close in the fourth quarter of 2012. Full details of the transaction are available in the Gallic information circular, a copy of which is available under Gallic's issuer profile on SEDAR at www.sedar.com. The Gallic Board of Directors has recommended that Gallic shareholders and Gallic warrantholders vote their shares and warrants in favour of the Arrangement at the annual and special meeting.
The Company has granted 4,330,000 stock options, including 2,700,000 stock options to officers of Petromanas pursuant to the Corporation's approved stock option plan. The options are exercisable at a price of $0.18 per share and vest annually over three years. All of the options expire on November 2, 2017.
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.
This press release contains forward-looking 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 and drilling of the Shpirag-2 and Juban-1 wells; the seismic program planned for Blocks 2-3 and the Company's ability to meet its commitments on Blocks D-E; the timing and anticipated receipt of required regulatory, court and securityholder approvals for the Arrangement; the ability of Petromanas to satisfy the other conditions to, and to complete, the Arrangement; the holding of the Gallic annual and special meeting and the closing of the Arrangement.
In respect of the forward-looking information concerning the future performance of the Company and the anticipated timing for completion of the Arrangement, 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 and Gallic to receive, in a timely manner, the necessary regulatory and governmental operational approvals, and the necessary regulatory, court, securityholder, stock exchange and other third party approvals in connection with the Arrangement, including the receipt of applicable foreign regulatory approvals; the ability of Petromanas and Gallic to satisfy, in a timely manner, the other conditions to the closing of the Arrangement; 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. The anticipated dates provided in this press release may change for a number of reasons, including unforeseen operational delays, delays in obtaining required regulatory and governmental approvals, failure of counterparties to satisfy their commitments, inability to secure necessary securityholder, regulatory, court or other third party approvals in the time assumed or the need for additional time to satisfy the other conditions to the completion of the Arrangement. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release.
In respect of the forward-looking information, Petromanas has provided such in reliance on certain assumptions that it believes are reasonable at this time, including assumptions in respect of: prevailing commodity prices, margins and exchange rates; that Petromanas' future results of operations will be consistent with past performance and management expectations in relation thereto; the continued availability of capital at attractive prices to fund future capital requirements relating to existing assets and projects, including but not limited to future capital expenditures relating to expansion, upgrades and maintenance shutdowns; the success of growth projects; future operating costs; that counterparties to material agreements will continue to perform in a timely manner; that there are no unforeseen events preventing the performance of contracts; and that there are no unforeseen material construction or other costs related to current growth projects or current operations.
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; 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; failure to realize the anticipated benefits of the Arrangement and to successfully integrate Gallic and Petromanas; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws and environmental regulations. Risks and uncertainties inherent in the nature of the Arrangement include the failure of Petromanas or Gallic to obtain necessary securityholder, regulatory, court and other third party approvals, or to otherwise satisfy the conditions to the Arrangement, in a timely manner, or at all. Failure to so obtain such approvals, or the failure of Petromanas or Gallic to otherwise satisfy the conditions to the Arrangement, may result in the Arrangement not being completed on the proposed terms, or at all.
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.
Glenn McNamara, CEO
Hamid Mozayani, COO
Bill Cummins, CFO
Petromanas Energy Inc.
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