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  • Petromanas Energy Sizes Up Albania Still Speculative Or Not 9 comments
    Jan 13, 2014 7:22 PM | about stocks: PENYF

    Petromanas Energy Inc. - Albania/France/Australia

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    (Symbol PMI on TSX, PENYF on OTCBB)

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    Currency Converter

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    NOTE: Anything in { } or [ ] are not direct quotes, I just added for clarity in the event readers don't understand certain references.

    BNN Interviewer Andy..

    "Time now for stakes and claims, its our weekly look at..a Venture listed company We have an energy company joining us for the FIRST time. Petromanas has been in Albania since 2010 and its play is prospective enough that Shell has bought in for a big chunk, for a look at that deal and well as development of what petromanas has called drilling deep expensive difficult wells...we are joined by Glen McNamarra the ceo at Petromanas, Glenn thanks so much for coming on the show."

    "So we know about Bankers Petroleum, how are you different? Just explain how what you are doing in Albania is any different than Bankers [petroleum]."

    Petromanas CEO

    Sure will, in some respects our business couldn't be more different than Bankers...they (Bankers) are refurbishing older heavy oilfields and we are exploring for deep light oil and much bigger targets {than Bankers Petroleum}.

    Shell apparently left Albania years ago they didn't manage to find in the way of oil or produce much but they are now buying into your properties and they are putting up something like $100MM could you tell us how that deal works?

    Petromanas CEO

    We first I'll say that we're exploring the large targets here, we've got an excellent onshore land base, were drilling prospects that are in the range of 200MM, 150MM barrels, these are world class, these are bigger than what a company our size can handle, so we had gone to a farm out process and engaged shell and they were quite interested and they pursued our data room, and they have offered a bid that we think is very fair, and we are both very pleased. We are very happy to have SHELL on board.

    BNN Interviewer Andy

    So I see this figure, $100MM is that fixed, or how much is shell actually paying you...at this stage?

    Petromanas CEO

    "Well what the deal is, that we have a 'carry' on 3 wells."

    And the carry is a carry of our share of upto $50MM for the first 2 wells, $42.5MM on a 3rd well, and a 'carry' on a $40MM seismic program. So they [Shell] are carrying our share of those activities."

    BNN Interviewer Andy

    'Oh I see you dont have to put up money for the moment'

    Petromanas CEO

    "That is exactly right, we are spending about a hundred million gross. Last year and this year net to Petromanas last year was about $14 MM we are looking at about the same this year, about $13-14MM."

    BNN Interviewer Andy

    "Now Shell is also exploring in italy across the Adriatic and they think the geology might be continuous."

    Petromanas CEO

    "Exactly. Shell is involved in 2 big fields there the Val D'gri and the Tempa Rossa they are 500MM BBL and 300MM BBL fields respectively. Val d'gri has been on production for about 14 years producing in excess of 80,000 bbl/day from about 30 wells. The wells can be very prolific, Tempa Rossa is coming on to about 50,000 bblday capacity by about 2016 and Shell is a partner in both of those with Eni and Total."

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    BNN Interviewer Andy

    Well your wells in Albania are not cheap, i believe they are going to cost about $50MM each to drill because you have to go through this "Flysch" (name of rock layer) shale formation?

    Petromanas CEO

    "Thats correct the well cost is in the $50 {Million} range, depending on the location and the lease that we need to build.

    But it {DRILLING COST} is mostly due to the depth.

    We are drilling these wells to 5500m to 6000m. You are correct we do have a {flakey flysch} shale that can be unstable, but it is the SEAL for the RESERVOIR. It's a "regional seal" and its a necessary "zone" we think we have learned alot from the first well and should be able to drill through that without any issues."

    BNN Interviewer Andy

    Give us an idea of when you would hope to see some production or what kind of production would you be looking at.

    Petromanas CEO

    "So we've drilled our first well, [Shpirag-2] it completed last summer, we tested it through the fall, we announced the discovery with the [Albanian] government in December 2013. So we now have a light oil discovery on this structure. We are drilling on a second well now which is about 18Km south of the first one. There is a chance this is all one structure.

    (click to enlarge)

    Our seismic has been very encouraging we just finished a program there, and the second well should be down {completed drilling} in the summer. These discoveries need to be appraised, the time line could be 2-3 years to finish the appraisal. Ahh but there is an opportunity to do early production and extended tests on these wells and we are evaluating that on this first discovery [Shpirag-2].

    BNN Interviewer Andy

    "Glen, we'll have to leave it there...thanks so much for joining us. Fascinating story.

    Petromanas CEO

    Thank you Andy appreciation you having us on, thank you very much.

    GM CEO of Petromanas Energy joined us from Calgary.

    {END of Interview}

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    TThings to consider:

    (march 11, 2014) news release

    New to oil plays? Click on the Index below, then 'drilling fundamentals' for an intro into terminology of oil and gas drilling.

    (Blog from Week of Feb 26)

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    [Image added 2/26/2014]

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    [Previous blog post]

    In the arena of Exploration, it doesn't get more exciting than virgin geology where entire new basins or oilfields could be born within a short time. Petromanas has more irons in the fire than just ALBANIA, but for this quick update we will focus only on the upside of the APPRAISAL wells being drilled in ALBANIA.

    Now for starters, this is highly speculative, meaning its risky as far as investments go, but it has an appeal that you will soon understand. The people and project in this company are Top Notch, they had to be, in 2013 they attracted a former US General Wesley Clark to the Director team.

    The project got even more attractive when SHELL Oil took an interest in it, and signed on for a 75% Working Interest in first Blocks 2-3 in ALBANIA.

    There is alot of work to be done, but at $0.15 a share most people can afford a chance on this project. And if the share price is too rich for your blood, the next product might interest you...called a Warrant PMI.WT (which could expire worthless by 02/2015 if the management cannot pull off a triple in value from its current $0.15 to $0.45 by then).

    The 'Warrants' are fancy ways of playing the PMI shares like option without tying up as much cash. They bear much more reward and much more risk, but the price is 1/10th the cost so if you like the timeline and want the option to not miss out on the upside you can own a Warrant (rights) that gives the Option to buy shares at $0.45 or above.

    Even if you don't get the timing right sometimes (although its rare) you can get a nice pop up on warrants pricing upon positive news releases from Oil drilling operations on Exploratory wells. Do your homework though, these look attractive but often investors don't get to exercise them and they are a fair priced way to raise funds by companies and reward early believers in an exploration play.

    (click to enlarge)

    Sector: Energy | Sub-Sector: Oil & Gas E&P

    Alternate Symbol(s): V.PMI.WT | PENYF

    Warrant Symbol - PMI.WT

    Number Trading - 100 million

    Expiration Date - Feb. 23, 2015

    Cusip - 71672A 11 3

    Exercise Price - .45



    There are $1.5 Million dollars of $0.015 warrants in the market right now. They only have value if PMI shares are trading at or above $0.45 so they are a speculative option for believers in the company and its ability to achieve results north of 45 cents by the expiry date of the warrants which is Feb 23, 2015.

    For someone else to

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    UPDATE:(click to enlarge)

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    The Drilling of Blocks 2-3 are big impact plays, that could be company makers if they not only make a discovery but are commercial wells that will flow for years.

    Shpirag and Molishti are close to being tested and will help confirm future plans on these initial Blocks. So far the industry is viewing these as very promising plays.

    By Q4 we should have results released, so if you plan on getting in, keep that timeline in mind.

    25% Interest means sharing 25% of all costs and if successful earning 25% of the revenue for production if its a commercial well.

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    (click to enlarge)(click to enlarge)

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    [ Speculative ]



    (Bal Sheet)

    Business Description: Petromanas Energy, Inc. is an exploration stage company. It acquires, explores and develops oil and gas properties in Albania, France and Australia.

    Address: 734-7th Avenue SW, Suite 1720, Calgary, AB,

    CAN, T2P 3P8

    Telephone: +1 403 457-4400

    Website: www.petromanas.com

    75% Interest means sharing 75% of all costs and if successful earning 75% of the revenue for production if its a commercial well.

    These are DEEP, Expensive wells that could flow Oil at super high rates for years.

    Disclosure: I am long RDS.A, PENYF.

    Stocks: PENYF
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  • tullii
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    Comments (168) | Send Message
    Author’s reply » News > Natural Resources > Petromanas (V.PMI) jumps 42% after Schaefer...
    Petromanas (V.PMI) jumps 42% after Schaefer analysis calls it ‘potential multi-bagger’
    Chris Parry, Stockhouse.com
    0 Comments| 1 day ago
    Add to favourites
    An in-depth analysis by Keith Schaefer has seemingly introduced Petromanas (TSX:V.PMI, Stock Forum) to a lot of new investors as the stock has blasted off Monday just hours after the oil and gas pundit called the company a ‘potential multi-bagger’.


    In a piece reposted to Stockhouse, Schaefer said of the Albania-focused, Calgary-based oil explorer, whose board of directors includes US four-star General and former NATO Supreme Allied Commander Wesley Clark, “They’re chasing a potential 500-800 million barrel target in Europe—Albania to be exact. Lots of energy investors are familiar with Bankers Petroleum and their heavy oil play there—it’s the largest onshore oilfield in all of Europe.”


    Though few people knew about Petromanas yesterday, Schaefer says “I expect that to change in a hurry in Q3 2014 if their next well hits. They already have one success under their belt. But even better, they’re getting carried for $100 million on exploration and seismic costs on two high-impact Albanian blocks by oil industry super major Royal Dutch Shell (NYSE:RDS.B, Stock Forum). Plus, Shell paid them cash for their sunk costs.”


    Stock in the company shot up on the back of the report, jumping $0.06 to $0.20, a 46% jump and an extreme 52-week high.


    Trading volume was extremely high, at 4.6 million shares traded by noon. The last news released by the company was on January 9, when they announced discovery on two Albanian blocks.


    Tags: OIL & GAS E&P ENERGY
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    1 day ago


    Read more at http://bit.ly/1hbGqtB
    25 Feb 2014, 01:46 PM Reply Like
  • tullii
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    Comments (168) | Send Message
    Author’s reply » (Compelling story to add to the potential of PMI, but do realize this is high risk, and not guaranteed in any way, but its got the right elements to be fantastic within 1 year if the appraisal wells confirm the reservoir is commercial and as large as stated below)


    Why Shell Needs This Junior’s Big Play
    by KEITH SCHAEFER on FEBRUARY 24, 2014


    Elephant hunting for huge international oil plays usually means going into (very) politically risky areas. That’s what makes junior Petromanas (PMI-TSXv) stand out from the crowd.
    They’re chasing a potential 500-800 million barrel target in Europe—Albania to be exact. Lots of energy investors are familiar with Bankers Petroleum and their heavy oil play there—it’s the largest onshore oilfield in all of Europe.
    But few people know about Petromanas. I expect that to change in a hurry in Q3 2014 if their next well hits. They already have one success under their belt.
    But even better, they’re getting carried for $100 million on exploration and seismic costs on two high-impact Albanian blocks by oil industry super major Royal Dutch Shell (NYSE:RDS.A). Plus, Shell paid them cash for their sunk costs.
    It’s rare to see a super major aggressively seek out a partnership with a company the size of Petromanas. Shell’s interest is ahuge validation of the true potential of the assets that Petromanas owns.
    However, Shell knew the geology very well—they’re already a partner in two large producing properties that are analogous to the Petromanas property in Albania, just across the Adriatic Sea from Albania in Italy.


    Not only does Shell bring to the party big financial and geological resources, but also in this case specific field experience in this particular type of play. (It’s a sub-thrust play which is very similar to what you see in the Canadian foothills in western Alberta).
    I was intrigued by Shell’s interest in this play so I called up Petromanas CEO Glenn McNamara to get some background.
    He said Shell had started expressing interest in the property even before Petromanas had formerly opened up a data room in 2011 to seek out a joint venture partner. Once the data room was officially opened Shell bid on the property.
    McNamara said that Shell’s joint venture bid was clearly one that Shell knew Petromanas would find attractive. Shell didn’t do any beating around the bush. It wanted these assets.


    In February 2012 Petromanas had Shell in as a partner for 50%, and by June of the next year (after the first well) Shell had upped its interest to 75%. Again, they knew the geology.
    Those two Italian properties are big, 500 million and 300 million barrel fields respectively.
    The first field started production 14 years ago and it is still producing over 80,000 barrels per day. The second field will commence production in 2016 and is expected to hit 50,000 bbls/day quickly.
    Individual wells on those fields can be prolific with rates ranging from 1,000 bbls/day up to 7-10,000 bbls/day.
    Shell needs multi-hundred million barrel discoveries to move the needle. Clearly Shell thinks it has a good chance of finding something like that in Albania.
    A positive needle move is something Shell shareholders would welcome. Despite spending $46 billion on exploration and development in 2013 Shell’s production actually declined by 5% to 3.25 million barrels a day year on year. 2013 earnings were also down from 2012.


    Albanian Blocks 2-3 – Activity to Date
    Shell and Petromanas have already drilled a well (Shpirag-2) on these blocks.
    The result of the drilling was a light oil discovery. The well was tested in the fourth quarter of 2013 and flowed at rates of 1,500 to 2,200 boe/day (60% oil).
    Drilling problems at Shpirag-2 meant they had to tap the reservoir with smaller diameter hole at the bottom—so the rates of the flow test make it difficult to predict how much oil the well can produce.
    But the discovery at Shpirag-2 did confirmed there is definitely oil in the tank.
    The question now becomes “how much oil”?
    To help determine that, Petromanas and Shell will be drilling another well (Molisht-1) 18 kilometers to the south.


    When I spoke with CEO McNamara he was clearly trying to keep a lid on his enthusiasm, but he did say that the Molisht-1 well target could actually prove to be the same structure as the Shpirag-2 well.
    That would mean this discovery is actually an oil field that is at least 18 kilometers long.
    If that is the case, it could easily mean that this field is 500 million to 800 million barrels in size.
    That is the potential. The challenge with this play is that the wells are very complicated and very expensive.
    Which is another reason why having Shell as a partner is a big plus for Petromanas. Shell has been drilling exactly these types of wells for 15 years across the Adriatic in Italy.
    Experience counts, but even after 15 years, these wells aren’t easy for even Shell to drill.
    The complication lies in the fact that the companies are drilling through a “flysch shale” rock enroute to the carbonate reservoir. It is flaky stuff that is not very stable.
    On the Shpirag-2 well the rock caved in on the drill string three times.
    Petromanas CEO McNamara described the flysch shale rock as being “coal like” with a tendency to “sluff” in on the well bore.
    Every well sounds like a challenge.
    On the Shpirag-2 well those challenges compromised the actual flow rates. That well ended up being only 4.5 inches in diameter instead of the 6 inches that the companies had hoped to use.
    As I said, we know there is oil in this tank. We just need another well or two to understand how much oil is there and how profitable it will be to produce.
    Shell’s interest in this Albanian property is what put Petromanas on my short list.
    Some back of the envelope math is what keeps the company close to the top of that list
    The size of the prize here is huge. We are talking about 500 to 800 million barrels.
    And these aren’t resource-play barrels that require hundreds of wells that decline very quickly. This is a conventional play–prolific wells with lower decline curves.
    Little Petromanas could have a 25% interest of a 500 to 800 million barrel field. That would be 125 to 200 million barrels net to them. Based on the analogous fields across the Adriatic in Italy, barrels in this type of field have NPVs (net present values) of $10 to $12 per barrel.
    Now the simple math:
    120 million barrels worth $10 each adds up to………………… $1.2 billion.
    Petromanas has a market capitalization of $90 million and an enterprise value of $60 million (market cap less cash on hand).
    Now, Petromanas has had to issue a lot of stock for that money—there is now 694 million shares out basic and 890 million fully diluted. That’s 100 million warrants at 45 cents due February 2015, 50 million performance shares depending on how much oil is discovered, and 46 million options at an average 27 cents.
    So at some point, management will almost certainly do a reverse split. But with a good well, that will mean the stock trades higher, not lower.
    And if this Albania play is the real deal Petromanas isn’t going to be a double or triple. Petromanas has the potential to be a multi-multi-multi-bagger. 1.2 billion divided by 60 million = 20x.
    That’s the potential. It’s exciting and why I’m interested, but it is very important to note that this Albanian play has not been “de-risked”. Petromanas CEO McNamara was careful to stress that several times when I spoke to him.
    We know there is oil, the Shpirag-2 discovery confirmed that. And we know the tank appears to be very large.
    What is needed next are a couple of additional wells to provide further detail on the find and a better indication of commerciality.
    There are two big events for Petromanas in 2014.


    The first will be the results of a new 51-101 resource assessment that Petromanas will get from a third party. TSX listed stocks must get independent resource appraisers. Since the last resource assessment was done Petromanas has obtained twice as much seismic data on the play and drilled a well.
    Petromanas believes one interpretation indicates that the structures could be a lot bigger than they appeared the first time around. Now we need to wait and see if the resource appraiser confirms this, and just how big they think it is.
    I think there is a very good chance that the third party reserve engineers come back with a big increase to their original resource assessment.
    I would expect those resource assessment numbers to show up in the second quarter.
    The second big event is the Molisht-1 well. Results from that well are expected in the third quarter of this year. It is possible this well will confirm that it has been drilled into the same structure as Shpirag-2 which is 18 kilometres away.
    That would be a day that Petromanas shareholders would welcome.
    by +Keith Schaefer
    PS—It’s interesting that the Point and Figure chart for PMI is now calling for a $2.19 share price—this is fromwww.stockcharts.com
    25 Feb 2014, 01:55 PM Reply Like
  • tullii
    , contributor
    Comments (168) | Send Message
    Author’s reply » [ 2013 Press Release From Shell re:Albania]


    Shell encouraged by positive well test results in Albania
    05 Nov 2013


    Royal Dutch Shell plc (“Shell”) and Petromanas Energy Inc. (“Petromanas” (TSXV: PMI)) yesterday announced positive test results from the Shpirag-2 well in Block 2-3, which covers an area of 3,450 square kilometres onshore south-central Albania.
    The well was drilled by the operator, Petromanas, to a total depth of 5,553m. Based on the previously drilled Shpirag-1 and test results from Shpirag-2, Petromanas and Shell believe they have identified in excess of 800m of oil column in fractured carbonate reservoirs, providing early validation of the light oil potential of the block.


    Edwin Verdonk, Shell Vice President Exploration Europe said “The results of the Sphirag-2 well are encouraging for the joint venture and support the potential of this oil play in Albania. We look forward to appraisal efforts next year to help us fully assess the volumes and production potential of this reservoir.”


    During a 3 day extended test period the well flowed at rates of 800 to 1300bbl per day of 35 - 37 degree API oil.


    “These test results initially confirm the well’s ability to flow light oil and provide early validation of the potential of Block 2-3 and our considerable investment to date in this asset,” said Glenn McNamara, CEO of Petromanas. “Given carbonate reservoirs are dependent on fracture porosity, and well rates can vary significantly across the reservoir, we are very encouraged to have flowing oil at these rates from our first well.”


    A 450km 2D seismic programme for Block 2-3 is in progress and is expected to conclude before the end of the year. The first appraisal well is planned after completion of a second exploration well which is currently drilling.


    Petromanas has a 25% working interest in Block 2-3 and is the operator, with Shell having the remaining 75% working interest. The joint venture was established in February 2012, and completion of the Sphirag-2 well is an important milestone in the multi-year exploration programme.




    Shell Media Relations
    International: +44 2079345550


    Shell Investor Relations
    International: + 31 70 377 4540
    North America: +1 713 241 1042


    For more information on the project, Petromanas, as operator, has details at http://bit.ly/MslMJK


    Notes to editors


    Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit http://www.shell.com


    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 ("PSCs") with the Albanian government. Under the terms of the PSCs, 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.
    25 Feb 2014, 09:28 PM Reply Like
  • tullii
    , contributor
    Comments (168) | Send Message
    Author’s reply » PMI sold 41,264,500 shares today. March 5,2014
    Expect some kind of news from France,Albania or Australia.
    Most likely good news on #2 Shpirag structure appraisal well.




    PETROMANAS ENERGY INC. (PMI) Listing Exchange: Venture


    All data delayed 15 minutes
    Bid Size 200
    Bid Price
    Ask Price
    Ask Size
    Last Price $0.20
    Tick $0.065 Net Change
    Volume 41,264,500


    Note: Bid Size and Ask Size fields are displayed in boardlots


    Also a Story from BalkanEu.com 01/19/2014 sets tone for this project in Albania.


    Tirana, February 19, 2014/Independent Balkan News Agency
    In the rich hydro carbon area of Molisht-Shpirag near Berat in Albania, Royal Dutch Shell and Petromanas Albania are performing drillings in search of hydro carbons.


    The first phase of research has ended, following a 200 million USD investment. The drilling goes up to 3500-4000 meters in depth.


    The tests which were carried out discovered significant amounts of oil and gas.


    The heads of these drilling operations say that currently, hydro carbon operations have been mainly focused on the area of Molisht 1 (photo) and three other wells are expected to be drilled through an investment of 200 million USD.


    Kastriot Bejtaj, vice general director of Petromanas says that the first indicators of the Shpiragu 2 well show a content of hydro-carbons, light oil, of a good quality, 150 tons a day and 50 m3 of gas a day.


    Yesterday, prime minister Edi Rama closely inspected the research being carried out and considered the results “very good news for the industry of hydro-carbons and Albanian economy in general”.


    Minister of Energy and Industry, Damian Gjiknuri, says that with the investments taking place in this block, production of oil in Albania could increase up to 50%.


    “Above all, the quality of oil is very good and it can increase production of Albania up to 50%. Taking into account the good quality of this oil, in financial terms, 70% more oil will be exported. The importance of this block, if it’s developed like it should do, based on the serious investments of Shell and Petromanas will be very good news for Albania, a growth in production, more incomes for the Albanian state and a very good thing for the industry of oil which makes Albania an important oil country, with the best quality of light oil today in the world”, said minister Gjiknuri.


    The drillings in this area have started in 2001, with the opening of Shpirag 1 well, which indicated the presence of hydro-carbons in the structure of Shpirag. Both contracting companies, Royal Dutch Shell and Petromanas Albania are listed in international stock markets. /ibna/


    - See more at: http://bit.ly/1fHOenZ
    5 Mar 2014, 04:48 PM Reply Like
  • tullii
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    Comments (168) | Send Message
    Author’s reply » Petromanas announces sale of shares by DWM
    March 05, 2014


    Petromanas announces sale of shares by DWM


    CALGARY, March 5, 2014 /CNW/ - Petromanas Energy Inc. ("Petromanas" or the "Company") (TSXV: PMI) has been advised that DWM Petroleum AG ("DWM"), previously the company's largest shareholder, today disposed of 40 million common shares at market prices, primarily to institutional investors purchasing through Haywood Securities Inc. One of the Company's directors acquired an aggregate of 10 million of these common shares. Following the disposition, DWM has advised the Company that they currently retain 8.5 million common shares of Petromanas or approximately 1% of the Company's issued and outstanding shares


    About Petromanas


    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 ("PSCs") with the Albanian government. Under the terms of the PSCs, 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.


    Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


    SOURCE Petromanas Energy Inc.




    Read more at http://bit.ly/1orZFiQ
    5 Mar 2014, 05:49 PM Reply Like
  • tullii
    , contributor
    Comments (168) | Send Message
    Author’s reply » A Little more on the sale of shares from MNP to PMI


    News from march 7
    MNP Petroleum Corporation ("MNP" or the "Company") (TSXV: MNP; OTCQB: MNAP) is pleased to provide additional information about its Tajikistan Exploration Project and its shareholding in Petromanas Energy Inc. (TSX.V:PMI).


    MNP is currently creating a consortium consisting of financing and operational entities for its ongoing activities in Tajikistan. The consortium should be finalized before the first exploration well is spud which is presently scheduled to commence at the beginning of the third quarter of 2014.
    MNP's Tajikistan affiliate CSJC Somon Oil (who owns a 100% interest in the Tajikistan exploration project and is 90% owned by MNP through its wholly owned subsidiary DWM Petroleum AG) is in the process of ordering the long lead items and additionally is in discussions with two parties regarding moving a drilling rig onto the site of the first well.


    To bridge the forming of a consortium, MNP will be using the majority of the proceeds out of the sale of its PMI shares for the implementation of the Tajikistan work program.
    In conjunction with its Tajikistan exploration licenses, MNP has had an Independent Resource Report prepared in respect of its two exploration licenses in Tajikistan. The results of which reflects an increase in the projects overall resource base. As a side note, this report includes contingent resources which are part of a field outside of the present license and which is partially developed. The overall report underlines the prospectivity of the block.
    Currently MNP is preparing the drill site for the first exploration well in the Tajikistan exploration project. Kayrakkum B is presently scheduled to commence drilling operations at the beginning of the third quarter of 2014 and is an analogue of a field which is located up-dip from it.
    In addition to using the majority of the funds from the sale of the PMI shares for the work program in Tajikistan, MNP is pleased to announce that it is instituting an open market share buy-back-program of up to US$ 1,000,000 which was approved by the board of directors on February 7, 2014. The details will be announced when available.
    MNP received gross proceeds from the sale of their PMI holdings in an amount of CDN$8 million (approximately US$ 7.2 million). Following the sale, MNP holds 8.5.million common shares and has a right to receive up to an additional 38.8 million PMI shares upon the occurrence of certain conditions. These conditions are described in the Share Purchase Agreement dated February 12, 2010, between PMI (then known as WWI Resources Ltd.) and DWM Petroleum, pursuant to which DWM Petroleum sold its Albanian project to PMI.


    Read more at http://bit.ly/1ijUBj9
    7 Mar 2014, 01:50 PM Reply Like
  • JohnIntuitive
    , contributor
    Comments (61) | Send Message
    I like this story very much...I'm invested also.
    10 Mar 2014, 06:37 PM Reply Like
  • tullii
    , contributor
    Comments (168) | Send Message
    Author’s reply » Petromanas provides update on Albanian activities


    CALGARY, March 11, 2014 /CNW/ - Petromanas Energy Inc. ("Petromanas" or the "Company") (TSXV: PMI) today provided an update on its drilling and testing activities on Blocks 2-3, in which it holds a 25% working interest and is the Operator with Shell holding the remaining 75% interest, and its discussions with the Albanian government with respect to the Blocks D-E Production Sharing Contract ("PSC"), in which the Company holds a 100% working interest.


    Blocks 2-3


    The Molisht-1 well has been drilled to a depth of approximately 3,270 metres. The Company logged the upper carbonate zone and has run and cemented the intermediate casing to this depth. This casing point is below the Berati fault, which the Company believes caused stability issues during the drilling of the Shpirag-2 well. Once drilling resumes, Petromanas expects to drill the well to a total depth of approximately 5,500 metres.


    Following the completion of a 30-day pressure build-up at Shpirag-2, the Company pulled data recorders from the hole and sent the acquired information for further analysis by a third party that specializes in the interpretation of well test data. Reservoir pressure extrapolated from the build-up indicates the reservoir is over-pressured, assuming an oil column of at least 800 m, as stated in a previous release. Given the relatively short three-day test, limited by on site tankage, production and pressures did not fully stabilize. Management believes that a longer flow test would be beneficial in estimating the long term productivity of the well. As a result of the instability issues experienced while drilling the Shpirag-2 well, open hole logs were not run as planned. The critical reservoir information from the logs would also benefit further analysis of the test data. Based on the positive oil rates, stable gas oil ratios and low H2S content measured during the three-day test and data obtained from the 2013 seismic program, plans are progressing for the Shpirag-3 well, which is expected to be located approximately three kilometers south of Shpirag-2 and to begin drilling immediately after the Molisht-1 well has reached total depth. The lease construction work has been tendered and the necessary long lead items have been ordered in preparation for drilling. The Company has submitted a phased appraisal plan for the Shpirag discovery to the Government of Albania. The appraisal plan contemplates drilling additional wells, planning additional seismic, continued fracture studies and the scoping of extended testing facilities.


    "Based on the results from the pressure build-up analysis at Shpirag-2, we are seeing indications of many of the reservoir characteristics necessary to support deliverability and production from a deviated wellbore that would access the interconnected fracture network that we believe exists in the target carbonate reservoir," said Mr. Glenn McNamara, CEO of Petromanas. "With the positive data we have on the Shpirag-2 discovery and additional seismic becoming available on Blocks 2-3, near-term next steps include obtaining an updated resource report generated by an independent third party in Q2 2014 and completing the drilling and testing of Molisht-1 in Q3 2014."


    Blocks D-E


    The Company today also announced that the Albanian National Agency of Natural Resources ("AKBN") has communicated its intention to request payment from the Company's bank in the amount of US$5.4 million against the Company's US$6 million performance guarantee outlined in the PSC for Blocks D-E. AKBN will request this payment as compensation for the financial commitment that was not completed by Petromanas in the second exploration period.


    Due to delays in receiving construction permits in 2012, Petromanas had requested an extension to complete its commitments for the second exploration period. In December 2012, the Albanian Ministry of Economy, Trade and Energy ("METE" or the "Ministry") approved the request for a one year extension and forwarded the revised PSC to the Albania Council of Ministers for ratification. This approval was eventually received on July 28, 2013, which made it impractical to source a rig and drill a well by the new deadline of December 25, 2013. Prior to receipt of this approval, the Company had requested a revision to the original request due to the ongoing delay in obtaining the extension approval. Given these events, and consistent with the terms of the PSC, the Company has submitted notice to AKBN requesting approval to enter into the third exploration period for Blocks D-E. The Company has further requested that the third exploration period would have a term of two years, as allowed in the PSC, commencing on the date of final government approval.


    Petromanas has a 100% working interest in Blocks D-E totaling 259,650 gross acres. Blocks D-E are to the north of the Company's discovery on Blocks 2-3 and outside of the areas of existing production in the country. Management believes that Blocks D-E have a higher risk profile than Blocks 2-3
    11 Mar 2014, 06:29 PM Reply Like
  • JohnIntuitive
    , contributor
    Comments (61) | Send Message
    I can't believe Petromanas got hit w/ a $6 million dollar penalty...no wonder the stock tanked.Suckssssss!
    13 Mar 2014, 07:18 PM Reply Like
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