Canada-based oil and gas company Petromanas Energy said on Thursday that, in
conjunction with its joint venture partner Shell, it has decided to temporarily
suspend drilling at the Molisht-1 well onshore in Albania.
"Having
encountered challenges drilling the lower flysch shale below the upper Carbonate
Eocene zone, the joint venture believes that the best option to reach the target
depth with an optimally sized well bore is through the use of a more powerful
rig," Glenn McNamara, CEO of Petromanas, said.
"In the near term we
intend to move ahead with drilling the Shpirag-3 appraisal as well as using the
3,000 horsepower rig we recently secured."
Petromanas and Shell intend to
re-enter the Molisht-1 well in the future with a higher powered rig to continue
drilling to the lower carbonate reservoir with the goal of reaching target depth
in the Cretaceous zone.
"Securing the future development of the Albanian
assets over the longer term requires exploring all funding alternatives to
minimise dilution to the current shareholders," Glenn McNamara said.
"We
are evaluating a range of options that we believe can support development beyond
the drilling of the third well envisioned in our current joint venture agreement
with Shell."
Under the terms of the agreement, Shell will carry
Petromanas on a third well to a maximum value of US $42.5 million (33.8 million
euro) gross drilling costs.
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. Shell holds the remaining 75% interest in
Blocks 2-3.
Petromanas also holds exploration assets in France and
Australia.