Petromanas Energy provided an update on its Albanian drilling program and its previously announced acquisition of Gallic Energy Ltd.

Blocks A-B

The Juban-1 well was spud on Nov. 23, 2012 and reached a depth of 5,629 feet (1,716 meters) on Dec. 27, 2012. The hole was logged once this target depth was reached. Logging operations were completed Dec. 30, 2012. Information gathered through the logging program indicated negligible quantities of hydrocarbons were present and the company has decided to plug and abandon the well. Petromanas holds a 100 percent working interest in Blocks A-B and total costs to drill the well to a depth of 5,629 feet (1,716 meters) were approximately US$6.5 million, approximately two million dollars less than the US$8.6 million originally budgeted.

Blocks 2-3

The Shpirag-2 well reached the top of the target carbonate reservoir zone at approximately 15,583 feet (4,750 meters) in late December 2012. The company has set casing to the top of the objective to put the less stable Flysch shale that overlies the target carbonate behind pipe. The well is now drilling ahead in the carbonate reservoir. Petromanas plans to penetrate the carbonate to sufficiently evaluate the reservoir potential. Testing is expected to follow reaching total depth. Total costs to drill the well to total target depth of 20,013 feet (6,100 meters) are estimated at US$44 million gross, US$9 million net to Petromanas.

Tags: Petromanas Energy Inc.