CALGARY, Alberta, November 4, 2013 /PRNewswire/ --
Petromanas Energy Inc. ("Petromanas" or the "Company") (TSXV: PMI) and Royal Dutch Shell plc ("Shell") today announced positive test results from its Shpirag-2 well in Block 2-3, which covers an area of 3,450 square kilometres onshore south-central Albania.
Testing operations commenced in mid-October following the arrival and rig up of all necessary equipment. Following acid stimulation, the Shpirag-2 well flowed naturally for 24 hours. Following initial clean up and shut-in, the Company conducted an extended, three-day test.
During the extended test, the Shpirag-2 well flowed at rates of 1,500 to 2,200 barrels per day of oil equivalent (boe); 800 to 1,300 barrels per day (bpd) of 35 to 37 degree API oil and 2 to 5 mmcfd of gas through varying choke sizes, at wellhead pressures ranging from 1,700 to over 3,000psi. The gas oil ratio was in the range of 2,500 to 2,800 scf/bbl. Lower than expected levels of hydrogen sulphide were observed (5,000 ppm) and, following the initial test, there was 0% water cut.
"These are compelling results from a well that, due to difficulties encountered while drilling, is not the optimal wellbore into the reservoir," said Mr. Glenn McNamara, CEO of Petromanas. "These test results initially confirm the well's ability to flow light oil and provide early validation of the potential of Block 2-3 and our considerable investment to date in this asset. Given carbonate reservoirs are dependent on fracture porosity, and well rates can vary significantly across the reservoir, we are very encouraged to have flowing oil at these rates from our first well."
"The results of the Shpirag-2 well are encouraging and support the potential of this oil play in Albania," said Edwin Verdonk, Shell Vice President Exploration Europe. "We look forward to appraisal efforts next year to help us fully assess the volumes and production capability of this reservoir."
Following the three-day test, the well has been shut in for a 30-day period for pressure build-up. Detailed analysis of the test results has started. The first appraisal well is planned at Shpiragu after completion of the Molisht-1 exploration well which is currently drilling.
Shpirag-2 was drilled to a total depth of 5,553 metres, and tested 400 metres of the target carbonate reservoir. Based on the previously drilled Shpirag-1 and the Company's current program at Shpirag-2, Petromanas and Shell believe they have identified in excess of 800m of oil column in fractured carbonate reservoirs at the Shpiragu structure.
Petromanas has a 25% working interest in Block 2-3 and is the operator. Shell holds the remaining 75% working interest.
Blocks 2-3 Seismic Program
The Company's contractors are in the process of acquiring the last few lines of seismic for its planned 450 km 2D seismic program. The acquisition is expected to conclude before the end of the year with seismic processing and interpretation expected to continue into 2014.
The Molisht-1 well was spud August 20, 2013 and conductor and surface casing was set. The well is drilling ahead at a depth of approximately 1,400 metres. The Company expects to drill the well to a total depth of approximately 5,500 metres.
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 that comprise more than 1.1 million gross acres across Albania's Berati thrust belt. Petromanas also holds exploration assets in France and Australia. For further information please contact:
Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit http://www.shell.com
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 the testing, assessment, and commerciality of the Shpirag-2 well, the drilling and cost of the Molisht-1 well and the timing and completion of the Company's 2013 seismic program. 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 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 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 of the Molisht wells at costs estimated and in the manner described in this press release or at all. There is a specific risk that the Shpirag-2 well will not continue to produce at initial rates disclosed in this press release. There is a specific risk that the Company may not be able to complete the 2013 seismic program in the timeframe estimated in this press release or at all. If the Company is unable to drill the Molisht-1 well at the costs estimated or in the manner described in this press release or at all, or if Shpirag-2 production is lower than initial tests indicate, 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 http://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.
Barrels of oil equivalent (BOEs) include oil, solution gas, associated gas and condensate. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl has been used and is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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
The Equicom Group
300 - 5th Avenue SW, 10th Floor
Canada T2P 3C4