Petromanas updates Albanian exploration activities
06 Jun, 2013, 07:00 ET
CALGARY, June 6, 2013 /CNW/ - Petromanas Energy Inc. ("Petromanas", or the "Company") (TSXV: PMI) today provided an update on current and planned exploration initiatives onshore Albania.
Albania Blocks 2-3
The Shpirag-2 well continues to drill ahead in the target carbonate reservoir at a depth of approximately 5,500 metres. Petromanas intends to drill the well to a target depth of approximately 5,800 metres.
The Company today also announced it has received notification that the Albanian government has approved construction permits for road and lease construction at the Molisht-1 drilling location and two other drilling locations located along the Shpirag structure in Blocks 2-3. Following the drilling of the Shpirag-2 well, the Company intends to mobilize the rig to the Molisht-1 location. Construction of the road and lease will commence in the next two weeks.
"Securing construction permits for three additional drilling locations on Blocks 2-3 will help minimize rig downtime and related costs as we move between drilling locations," said Mr. Glenn McNamara, CEO of Petromanas. "In the near term our exploration program remains focused on multiple targets in Blocks 2-3."
Albania Blocks A-B
In December 2012, following the drilling and logging of the Juban-1 well, Petromanas completed its work commitments under the second of three phases outlined in the Production Sharing Contract covering Blocks A-B.
Based on the information gathered during the logging operations at the Juban-1 well, which indicated the presence of negligible quantities of hydrocarbons, the Company has elected to not enter the third exploration phase on Blocks A-B. The Company will relinquish the approximate 346,000 acre land position in Blocks A-B. Prior to relinquishing the Blocks, the Company expects to remediate the Juban drilling location at an anticipated cost of $295,000, which was fully provided for in the March 31, 2013 financial statements. In conjunction with the relinquishment, the Company will expense its carrying value of Blocks A-B, which is approximately $19 million.
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 50% working interest in Blocks 2 and 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.
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 drilling of the Shpirag-2 well 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 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 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, completion equipment, 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
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]
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