Petromanas provides Albanian operational update

Shpirag-2

The Shpirag-2 well reached total depth of 5,547 meters in late June and the Company subsequently set the production liner and released the rig on July 13. Lease and tankage preparation has been underway since the rig was moved off the Shpirag-2 lease in mid-August. Testing equipment has arrived in country and is currently being rigged up. Testing operations will commence immediately following completion of rig up. The Company intends to conduct a controlled test of approximately 350-400 metres of the target carbonate zone with test duration dictated by a number of factors, including surface equipment capacity. The test is expected to include a 30-day pressure build-up after an initial flow test and acidization of the well. Results of testing are expected in the fourth quarter.

Molisht-1

The Molisht-1 well was spud August 20, 2013 and conductor and surface casing has been set. The well is drilling ahead at a depth of approximately 600 metres. The Company expects to drill the well to a total depth (TD) of approximately 5,500 metres and drilling operations are expected to take approximately nine months from spud. Petromanas’ estimated net drilling cost is USD $3 million.

Blocks 2-3 Seismic Program

The investigation conducted by the Investigation Board of the Albanian Ministry of Transport following the helicopter incident involving a third party contractor announced on August 13, 2013 was completed in late August and helicopter operations subsequently resumed. Shooting for the planned 2013 seismic program is expected to conclude before the end of the year.

“We are currently working to complete rig up of all necessary equipment so that we can start initial testing at Shpirag-2,” said Mr. Glenn McNamara, CEO of Petromanas. “In the meantime, our drilling activities at Molisht-1 and our seismic program spanning Blocks 2-3 continue to move ahead in accordance with our expectations.”

energjia.al, 25.09.2013