CALGARY, Oct. 30, 2014 /CNW/ - Petromanas Energy Inc.
("Petromanas" or the "Company") (TSXV: PMI) today provided an
update on key operational and corporate initiatives for its
European assets located in Albania
and France.
Albania
Molisht-1
As announced in the press release dated August 25, 2014, the Company was drilling a
sidetrack well targeting the lower carbonate reservoir. While
drilling ahead, the drill bit became stuck in the lower flysch
shale zone at a depth of approximately 4,700 metres. The bottom
hole assembly was subsequently severed from the drill pipe and the
well is currently ready to drill ahead from a depth of
approximately 4,200 metres without losing hole diameter.
In conjunction with its joint venture partner, Shell, Petromanas
has decided to temporarily suspend the Molisht-1 well. The
partners intend to re-enter the well in the future with a higher
powered rig to continue drilling to the lower carbonate reservoir
with the goal of reaching target depth in the Cretaceous zone. The
Company is in the process of releasing the rig currently on
site.
"Having encountered challenges drilling the lower flysch shale
below the upper Carbonate Eocene zone, the joint venture believes
that the best option to reach the target depth with an optimally
sized well bore is through the use of a more powerful rig," said
Glenn McNamara, CEO of Petromanas.
"In the near term we intend to move ahead with drilling the
Shpirag-3 appraisal well using the 3,000 horsepower rig we recently
secured."
The Company previously announced that the Molisht-1 well had
penetrated approximately 250 metres of Eocene carbonate.
Hydrocarbons were present in the drill cuttings from the Eocene
zone. Based on encouraging logging while drilling results in the
upper Eocene carbonate, the Company elected to run intermediate
wireline logs. The bore-hole image analysis revealed sections
within the Eocene containing natural fractures. With this
information the Company continues to be optimistic about the
potential of both the upper Eocene carbonate and the lower
carbonate zones to bear hydrocarbons and contain the natural
fractures required to demonstrate productive capablility. The
prospective carbonate reservoirs in this structure are the Eocene,
Paleocene and Cretaceous with the Cretaceous being the primary
target.
Blocks 2-3
Based on the costs associated with drilling the Shpirag-2 and
Molisht-1 wells, management is currently in the process of
identifying and reviewing all options to support the financial
requirements of a longer-term appraisal and development of Blocks
2-3. Initiatives currently under consideration include, but are not
limited to, a further farm down of Petromanas' working interest in
Blocks 2-3, the disposition of selected assets, and raising
additional capital. In addition, the Company has retained
Peters & Co. Limited to act as its financial advisor in
connection with such review process. The review process is
ongoing and Petromanas does not intend to disclose developments
with respect to the review process until the Board of Directors has
approved a specific transaction or otherwise determines that
disclosure is necessary or appropriate.
"Securing the future development of the Albanian assets over the
longer term requires exploring all funding alternatives to minimize
dilution to the current shareholders," said Glenn McNamara. "We are evaluating a range of
options that we believe can support development beyond the drilling
of the third well envisioned in our current joint venture agreement
with Shell."
Under the terms of the amended definitive farm out agreement,
Shell will carry Petromanas on a third well to a maximum value of
US $42.5 million gross drilling costs. The Company holds
a 25% working interest and is the operator with Shell holding the
remaining 75% interest.
France
As previously announced, the Company is working with Macquarie
Capital Markets Canada Ltd. on a marketing initiative to support
discussions with potential joint venture partners for its French
assets. To this point, the Company has received expressions of
interest from multiple parties. Petromanas has a 100% working
interest in both the Ledeuix and Ger Permits.
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 a Production Sharing Contract
("PSC") with the Albanian government. Under the terms of the
PSC, Petromanas has a 25% working interest in Blocks 2-3 that
comprises more than 850,0000 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 is 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 near term plans for drilling the
Shpirag-3 appraisal well, future plans for re-entering and drilling
the Molisht-1 well, securing additional funding to support the
financial requirements of its activities in Albania and securing a joint venture partner
for its French assets. 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 geological conditions of the reservoir of the Molisht-1 well
and the drilling of wells and performance of rigs occuring in a
manner consistent with the Company's past experience, the Company's
ability to meet its capital and operational commitments, the
ability of Petromanas to receive, in a timely manner, 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 addresses future events and
conditions, by its very nature it involves 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 or the failure to obtain 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; risks of litigation; 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 Molisht-1 well in the
manner described in this press release or at all. If the
Company is unable to drill, complete and test the Molisht-1 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. There is a
specific risk that the Company may not be able to secure a funding
solution for the longer term appraisal and development of Blocks
2-3 on acceptable commercial terms, or at all. If the Company is
unable to secure such a funding solution 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, 2013, 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.