Petromanas abandons drilling of Juban-1 well in Albania

Canada-based oil and gas company Petromanas Energy has decided to abandon the Juban-1 well due to the insignificant amounts of hydrocarbons found.

Petromanas completed the logging operations of the well on 30 December 2012 and drilled it to a total depth of 1,716m on 27 December 2012.

The company, which holds a 100% working interest in Blocks A-B of the well, has spent about $6.5m to drill the well.

Petromanas CEO, Glenn McNamara, said the company drilled the Juban-1 well on the basis of broad geological testing of potential analog structures to identify commercially viable reserves of hydrocarbons outside areas of current production.

"Juban-1 was a high-risk exploration well with an estimated chance of success of less than 20% since there is no existing petroleum system in northern Albania and, while this result is not what we hoped for, we believe we have been able to cost effectively obtain an initial assessment of the potential of this area.

"Our drilling program continues to advance with the Shpirag-2 well drilling ahead into the carbonate reservoir and we remain optimistic with respect to the potential of Blocks 2-3," exaplained McNamara.

In late December 2012, the Shpirag-2 well encountered carbonate reservoir zone at about 4,750m.

Petromanas intends to pierce the carbonate to estimate the potential of the reservoir and is planning to test the well after reaching itstotal depth.

The company has spent about $44m to drill the well to a total depth of 6,100m.

In addition, Petromanas has concluded the Environmental and Social Impact Assessment (ESIA) and civil engineering work at two additional potential drilling locations on Blocks 2-3.

The company is in the final stages of completing the Gallic acquisition by acquiring 100% of the issued and outstanding class A shares of Gallic.

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Image: Juban-1 well. Photo: courtesy of Petromanas Energy.