Petromanas Expands Drilling Program With Spud of Juban-1 Well; Provides
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.
Glenn McNamara, CEO Hamid Mozayani, COO Bill Cummins, CFO Petromanas Energy
Inc. Suite 1720, 734 - 7th Avenue SW Calgary, Alberta Canada T2P 3P8 Tel: +1
403 457 4400 Fax: +1 403 457 4480 Email:firstname.lastname@example.org
Nick Hurst The Equicom Group 300 - 5th Avenue SW, 10th Floor Calgary, Alberta
Canada T2P 3C4 Tel: +1 403 218 2835 Fax: +1 403 218 2830
SOURCE: Petromanas Energy Inc.
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CO: Petromanas Energy Inc.
NI: OIL FIELD
-0- Dec/03/2012 22:54 GMT
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