Due to the high risk and limited prospectivity of Blocks D-E, the company says it has chosen to allocate the capital to Blocks 2-3, where Petromanas has formally announced a discovery.
TIRANA, May 26 – Canada-based Petromanas has announced its withdrawal from Block D-E in central Albania after a regulator refused the company’s request to enter the third exploration period with a reduced financial commitment.
“The Company has until August 11, 2014, to provide a bank guarantee for USD $6.3 million or relinquish the blocks. As a result, the company recorded an impairment expense of its carrying value of Blocks D-E of approximately USD $23 million in the first quarter and considers it unlikely that it will provide the requested guarantee,” Petromanas said in a statement.
Due to the high risk and limited prospectivity of Blocks D-E, the company says it has chosen to allocate the capital to Blocks 2-3, where Petromanas has formally announced a discovery to the Albanian government.
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 percent working interest in Blocks D and E and a 25 percent 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.
Molisht well on track
The Molisht-1 well is currently drilling ahead at a depth of approximately 4,400 metres and Petromanas expects to drill the well to a total depth of approximately 5,500 metres, the Canada-based company has announced.
The well is located on Blocks 2-3, in which Petromanas holds a 25 percent working interest and is the operator with Shell holding the remaining 75 percent interest.
“Based on the technical work conducted on Blocks 2-3 we interpret the target zone as having been encountered approximately 300 metres higher than originally anticipated and are very encouraged by this development,” said Mr. Glenn McNamara, CEO of Petromanas. “Taking the lessons learned from Shpirag-2, we have to this point been able to avoid many of the issues encountered on our last well. We are now drilling ahead with a larger hole with the ultimate goal of increasing the potential for well productivity by having the wellbore intersect as many of the naturally occurring fractures in the target carbonate as possible.”
In late 2013, Canadian-based Petromanas and its joint partner the Royal Dutch Shell 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.
In early 2012, Petromanas and Netherlands-based Shell oil giant announced a joint venture under which Shell acquired a 50 percent participating interest in the Blocks in exchange for payments and carried costs up to US$50.3 million.
