Petromanas amends farm out agreement with Shell and Shpirag-2 reaches total depth

Petromanas amends farm out agreement with Shell and Shpirag-2 reaches total 
depth 
CALGARY, June 24, 2013 /CNW/ - Petromanas Energy Inc. ("Petromanas", or the 
"Company") (TSXV: PMI) today announced that it has entered into an amended 
definitive farm out agreement (the "Agreement") with a wholly owned subsidiary 
of Royal Dutch Shell plc ("Shell"), whereby Shell will further farm into the 
Company's exploration rights on Blocks 2-3 (the "Blocks") comprising 
approximately 852,000 gross acres onshore Albania. Under the terms of the 
Agreement, Shell will acquire a further 25% participating interest in the 
Blocks in exchange for total consideration of approximately US $22 million. 
Assuming full execution of the exploration program, the Company expects the 
Agreement will result in a reduction of its net cash outflows by more than US 
$60 million over the next two years. Petromanas remains the operator of the 
Blocks and the Joint Operating Agreement between the parties remains in force 
and unchanged. The Agreement is effective June 1, 2013 and is subject to 
customary closing conditions including the receipt of all necessary regulatory 
and government approvals. 
"Our understanding of the prospects on Blocks 2-3 continues to evolve through 
a combination of our own experience drilling the Shpirag-2 well and our 
partner's insight generated through recent and ongoing work in analog plays in 
the region," said Mr. Glenn McNamara, CEO of Petromanas. "The joint venture 
has determined that the defined exploration program will include three wells 
and a seismic program with gross spending projected to approach US $200 
million. Reducing the Company's working interest to 25% allows the Company to 
mitigate risk and improve financial flexibility. With a focus on planning for 
long term success, management believes this decision will allow Petromanas to 
participate in the ongoing exploration of Blocks 2-3 with a sustainable 
working interest. We view Shell's willingness to acquire an additional 
interest in this asset as an indication of their belief in the prospectivity 
of Blocks 2-3 in Albania." 
Under the terms of the Agreement, Shell will make equalization payments with 
respect to gross drilling costs on the Shpirag-2 well to a maximum of US $50 
million. Shell will increase the carry on the Molisht-1 well to a maximum of 
US $50 million gross drilling costs and will carry Petromanas on a third well 
to a maximum value of US $42.5 million gross drilling costs. The Agreement 
also reduces the Company's share of the US $40 million 2013 seismic program to 
approximately US $1 million. Any potential excess costs of the expanded work 
program over the carried amounts shall be jointly paid by both parties in 
proportion to their participating interest. 
Petromanas today also announced the Sphirag-2 well has reached total depth 
(TD) of approximately 5,500m. The total drilling gross cost is now projected 
at approximately US $70 million (net US $16 million assuming closing of the 
Agreement). The rig will be moved off the Shpirag-2 lease once the Molisht-1 
lease construction is completed. Stimulation and testing equipment rig up will 
commence once the drilling rig is off the Shpirag-2 lease. The Company intends 
to test in the range of 350-400 metres of the target carbonate. Timing for the 
rig move and commencment of testing operations is expected to be mid-August 
2013. 
Conference Call Details 
The Company will host a conference call and webcast on Tuesday, June 25, 2013 
at 7:00 a.m. MT (9:00 a.m. ET) to discuss in more depth its activities in 
Albania. To access the conference call by telephone, dial 1-647-427-7450 or 
1-888-231-8191. A live audio webcast will also be available at the following 
link: http://www.newswire.ca/en/webcast/detail/1187807/1302053. Please connect 
at least 10 minutes prior to the webcast to ensure adequate time for any 
software download that may be needed. A replay of the webcast will be 
available at www.petromanas.com and will also be available by telephone 
through July 2, 2013. To access the telephone replay, dial 1-416-849-0833 or 
1-855-859-2056 and enter reservation number 99870296 followed by the number 
sign. 
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 25% working interest in Blocks 2-3 
(assuming closing of the Agreement) 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 
completion and testing of the Shpirag-2 well, the spudding of the Molisht-1 
well and the completion of the transactions contemplated by the Agreement. 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 completion and testing of the Shpirag-2 
well at costs estimated and in the manner described in this press release or 
at all. There is also a specific risk that the transaction contemplated by 
the Agreement may not be completed as described in this press release or at 
all if the closing conditions including the receipt of all necessary 
regulatory and government approvals are not met. If the Company is unable to 
complete and test the Shpirag-2 well at costs estimated and in the manner 
described in this press release or at all and/or the closing conditions in the 
Agreement are not met, 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. 
Glenn McNamara, CEO 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:info@petromanas.com Website:www.petromanas.com 
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 
Email:nhurst@tmxequicom.com 
SOURCE: Petromanas Energy Inc. 
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CO: Petromanas Energy Inc.
ST: Ontario
NI: OIL VNT  
-0- Jun/24/2013 21:01 GMT
 
 
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