Seismic Ops Underway at Petromanas' Albania Blocks

Petromanas Energy Inc. announced late Monday that its 2013 seismic program on Blocks 2 and 3 in Albania is underway.

Petromanas said its contractor, Geotec SpA of Italy, has initiated survey work and the drilling of shot holes. Recording commenced April 15.

Under the terms of the company's farm-out agreement with Royal Dutch Shell plc, Petromanas will be carried on the first $20 million spent on the seismic program, including the test line which was shot in 2012 and which is currently being processed. Any costs in excess of that amount will be shared equally by both parties.

Petromanas also announced that it has cased the Shpirag-2 well in Albania to the top of the main objective carbonate reservoir at a depth of 16,942 feet (5,164 meters). The company set casing from the previous casing depth of approximately 15,584 feet (4,750 meters) to put the lower zone of unstable flysch shale behind pipe. The well is currently drilling ahead in the upper carbonate zone at a depth of approximately 17,060 feet (5,200 meters).

"Successfully casing to this point means we can turn our attention to the carbonate target zone, without having to worry about instability higher in the hole," Petromanas CEO Glenn McNamara said.

"We and our partner remain committed to drilling the target carbonate zone to a sufficient depth so we can run logs and gather sufficient information to assess the potential of this prospect."

Petromanas estimates the total costs to drill the well to date are approximately $60 million, or $17 million net to the firm. The firm's management estimates the total costs to drill the well to the target depth of 19,029 feet (5,800 meters) at approximately $67 million gross. The logistics planning and sourcing for the Shpirag-2 completion/testing program is in the final stages and will be mobilized once the well reaches total depth.

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