CALGARY, Nov. 5, 2012 /CNW/ - Petromanas Energy Inc. ("Petromanas" or the "Company") (TSXV: PMI) today provided an update on various operational and strategic initiatives.Petromanas continues to progress its 2012 business plan concurrently on several initiatives.
Drilling of the Shpirag-2 well is progressing; the Company has set production casing to a depth of 3,414 metres and the hole has reached a depth of approximately 4,050 metres. The top of the target carbonate is expected to be encountered at approximately 5,000 metres. Drilling plans are to penetrate approximately 1,100 metres of carbonate to the target depth of approximately 6,100 metres, which is anticipated to be reached in either late 2012 or early 2013. Testing will follow reaching total depth. The Albanian Prime Minister, Sali Berisha, visited the Shpirag-2 wellsite on October 27, 2012 to observe the Company's operations. During a speech at the wellsite, the Prime Minister thanked Petromanas and Shell for their loyalty toward Albania and the investment which the companies have made in the country. He wished the companies success in the drilling of the Shpirag well.
The Company has completed all necessary logistical preparations and initiated its 2012-13 seismic program over Blocks 2-3. Petromanas is initially shooting two lines of 2D seismic that will help determine the final shot parameters for the balance of the 400-500 kilometre initiative, expected to be completed in 2013. Shell will carry the first $20 million dollars of this seismic program with any excess amount shared equally by both parties.
The Company is completing its preparations to spud the Juban-1 well located on Block A, onshore Albania, pending the release of the rig from its current assignment. Petromanas locally sourced a double land rig with a 1,000 horsepower rating. Drilling is currently expected to begin in mid-November and take approximately 30 days at an estimated cost of $9 million. The Company intends to drill the well to a target depth of approximately 2,600 metres.
"We are currently advancing multiple initiatives from our 2012 exploration
program in parallel," said Mr. Glenn McNamara, CEO of Petromanas. "Our near-term focus remains on drilling and testing the Shpirag and Juban prospects so we can more fully assess the potential of the hydrocarbon system in the carbonates.
Results from these wells will be an important factor in determining our future exploration strategy in Albania. In addition, we have worked closely with Shell to initiate a seismic program to increase our knowledge of the subsurface in Blocks 2-3 and advance the exploration and development program on those blocks."
Petromanas is in ongoing discussions with the Albanian Government with the goal of suspending the commitment period on Blocks D-E for one year, following delays in receiving construction permits which made drilling the commitment well before the December 25, 2012 deadline unachievable. There is no guarantee that the Albanian Government will agree to suspend the commitment period for one year or at all. If the Albanian Government does not suspend the commitment period, Blocks D-E will no longer be in good standing and Petromanas may lose its 100%
interest in Blocks D-E and its $6 million performance guarantee.Alternatively, the Albanian Government could request Petromanas to provide a new bond to retain its interest in Blocks D-E.The Company considers Blocks D-E to be of higher risk than Blocks 2-3 and relatively costly to explore.
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.
Source: Petromanas Energy Inc.
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