Petromanas Temporarily Suspends Molisht-1 Well in Albania

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.

Source: SeeNews