Petromanas, Shell invest $80 mln in two years

TIRANA, Oct. 29 – Canadian-based Petromanas and Netherlands-based Shell oil giant have invested USD 80 mln in two years in Albania, Prime Minister Sali Berisha said last weekend inspecting drilling works in the Shpirag 2 well, in southwestern region of Berat, which at 6,100 metres is the deepest oil well in Albania. The oil well which progresses with an average of 40 metres/day has currently reached 4,045 metres, employing 100 people. Thanking Petromanas and Shell for their investment in Albania, Prime Minister Sali Berisha guaranteed the companies government will undertake a series of new measures to further improve the business climate and guarantee investments.
“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.
Netherlands-based Shell oil giant and Canadian-based Petromanas, which earlier this year announced a joint venture, say they will invest USD 50 million in the drilling of an oil well in Albania this year. Under the terms of the agreement, Shell will farm into the Company’s rights on exploration Blocks 2-3 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 in Berat and Lezha.
“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.