CALGARY, March 14, 2013 /CNW/ - Petromanas Energy Inc. ("Petromanas" or the "Company") (TSXV: PMI) today provided an update on the drilling of its Shpirag-2 well.
Following the sidetrack announced on February 11, 2013, the Company took a number of additional steps to mitigate instability in the lower flysch shale zone above the target carbonate reservoir. Petromanas believes these measures contributed to improved hole stability and afforded a period of solid drilling progress that saw the well reach a depth of approximately 5,275 metres in the upper carbonate zone. Subsequently, the bit became stuck and additional hole instability was experienced. During drilling, and prior to the loss of circulation, the Company observed indications of the presence of oil and gas in the drilling cuttings from the upper carbonate.
On this basis, the Company is sidetracking the well at a depth of approximately 4,810 metres. After the well re-enters the upper carbonate section, the Company intends to set casing from the previous casing depth of approximately 4,750 metres to put the lower zone of unstable flysch shale behind pipe.
"We have seen positive early indications with respect to the presence of hydrocarbons but still face challenges with the very complex and active geology of the region, which continues to cause instability in the open portion of the hole," said Mr. Glenn McNamara, CEO of Petromanas. "While our preference was to drill through the carbonate with a larger hole, we feel it is prudent at this point to put the entire flysch shale zone behind casing so that we can avoid further instability above the target and focus on penetrating the carbonate zone to a sufficient depth to complete a better assessment of its potential. Shell continues to actively participate in our initiatives on Blocks 2-3 and brings extensive carbonate drilling and completions experience to the project gathered from operations both regionally and around the world."
Once the Shpirag-2 well reaches total depth the Company plans to log, complete and flow test the well. Planning and logistics in preparation for well completion and test operations have been finalized. Total costs to drill the well to this point are approximately US$53 million or approximately US$14 million net to Petromanas. Management estimates the total costs to drill the well to the target depth of 5,800-6,000 metres at approximately $67 million gross.
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. Petromanas also holds exploration assets in France and Australia. For further information please contact:
This press release contains 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, costs and drilling of the Shpirag-2 well, the costs of drilling, the ability of the Company to address technical, geological and operational challenges in the drilling, logging, completion and testing of the Shpirag-2 well, the presence of hydrocarbons and the Company's current exploration activities. 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, the planned seismic program 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 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. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release.
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; delays in obtaining governmental approvals, permits or financing or political risks in the completion of development or construction activities; 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; 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, completion and testing of the Shpirag-2 well at costs estimated and in the manner described in this press release or at all. If the Company is unable to drill, complete and test the Shpirag-2 well at costs estimated and in the manner described in this press release or at all 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.
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