Canada-based oil and gas company Petromanas Energy said the Albanian National
Agency of Natural Resources formally refused its request to enter into a third
exploration period for Blocks D-E with a reduced financial
commitment.
Petromanas has until August 11 to provide a bank guarantee
for $6.3 million (4.6 million euro) or relinquish the blocks, it said on
Thursday.
"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.
"Due to the high risk and limited prospectivity of
Blocks D-E, the company has chosen to allocate the capital to Blocks 2-3, where
Petromanas has formally announced a discovery to the Albanian government," it
added.
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 with
the Albanian government. Under the terms of the contracts, Petromanas has a 100%
working interest in Blocks D and E and a 25% 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.