Petromanas Energy Inc. provided an operational update on its ongoing drilling program in Albania. The Company spud the Shpirag-2 well located on Blocks 2-3 onshore Albania on June 30, 2012. Drilling of the well continues and the Company has set surface casing to a depth of 1,057 metres and the intermediate hole has reached a depth of approximately 2,200 metres. The Company continues to expect the well to reach target depth of approximately 6,100 metres either in late 2012 or early 2013. Testing will follow reaching total depth.
The Company has also completed the initial design for its seismic program over Blocks 2-3. Petromanas and Shell, its joint venture partner, are currently working with third-party contractors to finalize logistical preparations for the program, which is expected to begin in the fourth quarter. The program has been designed to further delineate the Shpirag prospect for appraisal drilling and improve the data quality over other prospects and leads on the Blocks. This additional data is expected to contribute to the selection of future drilling locations. Shell will carry the first $20 million dollars of this seismic program with any excess amount will be shared equally by both parties.
Petromanas has also sourced a shallow rig to drill the Juban prospect located in Blocks A-B onshore Albania. The Company has received all necessary permits and lease and access road construction is complete. Drilling of the Juban-1 well is expected to begin early in the fourth quarter of 2012 following receipt of approval of the rig assignment from the Albanian government. The Company intends to drill the well to a target depth of approximately 2,600 metres.
"In parallel with our drilling and seismic activities at Shpiragu we are also near completion of the necessary preparations to commence drilling at Juban-1 later this year," said Mr. Glenn McNamara, CEO of Petromanas.
Management is currently finalizing its options and plans for completing its 2012 PSC commitments in Blocks D-E.