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 parties.
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
Email: [email protected]
The Equicom Group
300 - 5th Avenue SW, 10th Floor
Canada T2P 3C4
Tel: +1 403 218 2835
Fax: +1 403 218 2830
Email: [email protected]