Petromanas Sets Up Testing Rig, Results Expected in Q4

Frank Giustra’s Petromanas Energy (PMI), an oil and gas exploration company working on a joint venture with Royal Dutch Shell, has provided an update on its Albanian operations.

PMI announced that a testing rig is currently being set up at the Shpirag-2 well site. Shpirag-2 was drilled to 5,547 meters in late June. PMI intends to conduct a controlled test of approximately 350-400 metres of the target carbonate zone.

Shpirag-2 is targeting a reservoir which Occidental Petroleum drilled in 2001. Oxy’s flowed light oil to surface, unfortunately at uneconomic rates, due to troubles with the well (Shpirag-1).

PMI’s Shpirag-2 also had its difficulties. From my understanding the wellbore had to be reduced in size at depth, which could negatively affect flow rates.

We have spoken to Mr. Giustra, a director and large shareholder in Petromanas, who tells us, “It’s up to the Gods now.”

Results are expected in the fourth quarter.

To the south east of Shpirag-2, the Molisht-1 well was spud August 20, 2013 and is drilling ahead at a depth of approximately 600 metres. PMI expects to drill the well to a total depth of approximately 5,500 metres and drilling operations are expected to take approximately nine months. PMI’s estimated net drilling cost is USD $3 million.

PMI also announced that Blocks 2-3 Seismic Program expect to conclude at year end. Blocks 2-3, which PMI holds a 25% interest and Royal Dutch Shell 75%, cover a mountainous region in Southern Albania. Seismic data should help the joint venture identify future oil and gas prospects in that country.

“We are currently working to complete rig up of all necessary equipment so that we can start initial testing at Shpirag-2,” said Mr. Glenn McNamara, CEO of Petromanas. “In the meantime, our drilling activities at Molisht-1 and our seismic program spanning Blocks 2-3 continue to move ahead in accordance with our expectations.”

Here’s the PMI chart, which has been ticking up lately…

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