Petromanas Energy (PMI-V)
www.petromanas.com
631 million o/s
>50 million cash
Petromanas Announces Completion of Joint Venture With Shell and Provides Operational Update
May 16, '12 - News Release
Petromanas Energy announced it has successfully completed its previously announced definitive farm out agreement (the "Agreement") with a wholly owned subsidiary of Royal Dutch Shell plc ("Shell") following the Albanian government's approval of the assignment of interest to Shell. Under the terms of the agreement, Shell will farm into the Company's rights on exploration Blocks 2-3 (the "Blocks") comprising approximately 852,000 acres onshore Albania. Shell is acquiring a 50% participating interest in the Blocks in exchange for payments and carried costs up to US$50.3 million. Petromanas continues to act as operator of the Blocks. Additionally, the Company has been notified that the Albanian government has approved construction permits for road and lease construction on the Blocks at the Shpirag-2 and Juban-1 drilling locations.
"Receiving these government approvals removes the critical barriers in executing the Company's 2012 business plan. Closing the Shell farm-out agreement sets the stage for our continued close collaboration with Shell," said Mr. Glenn McNamara, CEO of Petromanas. "Receipt of the construction permits allows us to immediately commence road and lease construction and we expect to spud the Shpirag-2 well by mid-year."
Under the terms of the Agreement, Shell will carry Petromanas' exploration costs up to US$22.5 million in the first exploration period and, subject to entering into the second exploration period, Petromanas' well costs up to US$11.5 million. Any potential excess costs of the work program over Shell's share plus the carried costs shall be jointly paid by both parties in proportion to their participating interest. In addition, Shell is paying cash consideration of US$16.3 million, of which US$11 million is refundable to Shell, should Petromanas secure a partner for the other Petromanas blocks during the current exploration periods that expires December 25, 2012.
Petromanas intends to spud the Shpirag-2 well in late Q2 2012, once lease and access road construction is completed. Shpirag- 2 is one of the Company's largest prospects. The KCA Deutag T-46 rig, which will be used for the drilling operations, arrived in Albania in early May. The Juban-1 well in Blocks A-B is expected to be drilled following completion of drilling at Shpirag-2 and management is currently finalizing options for completing the balance of the Company's 2012 well commitments.
"Petromanas has completed public consultation in the communes around and near the drilling sites and is looking forward to commencing operations. We will be diligent in ensuring the wells are drilled safely with a minimal environmental footprint," said Mr. McNamara.
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Petromanas Announces Spudding of Shpirag-2 Well
July 3, '12 - News Release
Petromanas Energy (PMI-V) today announced the Shpirag-2 well located on Blocks 2-3 onshore Albania was spud on June 30, 2012 (CET). The Company intends to drill the well to a target depth of 6,100 metres. As previously indicated, the well is expected to take 150 -- 180 days to drill to total depth ("TD"). The anticipated gross cost of drilling the well to TD is approximately $31 million. Under the terms of the Company's Block 2-3 farm out agreement, the first $25 million of the well cost will be carried by the Company's partner and above that amount the Company will pay 50% of the well cost. Petromanas' estimated net drilling cost is $3 million.
"Spudding our first well in Albania represents the culmination of a great deal of hard work by our entire team and is an important milestone and a key step forward in the execution of our 2012 drilling program," said Mr. Glenn McNamara, CEO of Petromanas. "This well is a re-drill of the Shpirag-1 well that was drilled to 5,200 metres by Occidental in 2001 and tested light oil to surface. Our well design takes into account key learnings from our analysis of the Shpirag-1 well."
Management is currently finalizing rig options for completing the balance of the Company's 2012 well commitments. |
