Petromanas announces spudding of Shpirag-2 well

CALGARY, July 3, 2012 /CNW/ - Petromanas Energy Inc. ("Petromanas" or the "Company") (TSXV: PMI) today announced the Shpirag-2 well located on Blocks 2-3 onshore Albania was spud on June 30, 2012 (CET). The Company intends to drill the well to a target depth of 6,100 metres. As previously indicated, the well is expected to take 150 - 180 days to drill to total depth ("TD"). The anticipated gross cost of drilling the well to TD is approximately $31 million. Under the terms of the Company's Block 2-3 farm out agreement, the first $25 million of the well cost will be carried by the Company's partner and above that amount the Company will pay 50% of the well cost. Petromanas' estimated net drilling cost is $3 million.

"Spudding our first well in Albania represents the culmination of a great deal of hard work by our entire team and is an important milestone and a key step forward in the execution of our 2012 drilling program," said Mr. Glenn McNamara, CEO of Petromanas. "This well is a re-drill of the Shpirag-1 well that was drilled to 5,200 metres by Occidental in 2001 and tested light oil to surface.  Our well design takes into account key learnings from our analysis of the Shpirag-1 well."

Management is currently finalizing rig options for completing the balance of the Company's 2012 well commitments.

About Petromanas

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 expected timing and cost of drilling of the Shpirag-2 well. 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 drilling the Shpirag-2 well could be delayed if unforeseen circumstances occur and resulting costs could be higher than anticipated.  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.

 

Glenn McNamara, CEO
Hamid Mozayani, COO Bill Cummins, CFO
Petromanas Energy Inc.
Suite 1720, 734 - 7^th Avenue SW
Calgary, Alberta
Canada T2P 3P8
Tel: [phone]
Fax: [phone]
Email: [email protected]
Website:  www.petromanas.com

The Equicom Group
Nick Hurst
300 5th Avenue SW, 10th Floor
Calgary, Alberta
Canada T2P 3C4
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Fax: [phone]
[email protected]