CALGARY, Feb. 9, 2012 /CNW/ - Petromanas Energy Inc. ("Petromanas" or
the "Company") (TSXV: PMI) today announced it has entered into a
definitive farm out agreement (the "Agreement") with a wholly owned
subsidiary of Royal Dutch Shell plc ("Shell"), whereby Shell will farm
into the Company's rights on onshore exploration Blocks 2-3 (the
"Blocks") comprising approximately 852,000 acres onshore Albania. Under
the terms of the Agreement, Shell will acquire a 50% participating
interest in the Blocks in exchange for payments and carried costs up to
US$50.3 million. Petromanas will continue to act as operator of the
"We are very pleased to have Shell as a joint venture partner. They
bring exceptional technical capabilities and substantial resources to
our new relationship," said Mr. Glenn McNamara, CEO of Petromanas. "We
believe that partnering with a global leader like Shell provides a
validation of the potential of our Albanian assets and the exploration
work we have completed to date. Our 2012 drilling program remains
unchanged and is moving ahead as planned from a position of enhanced
strength and we expect the addition of a further seismic program to
accelerate the exploration and development of the Blocks."
Under the terms of the Agreement, Shell would carry Petromanas on the
following items: a work program up to US$22.5 million in the first
exploration period and subject to entering into the second exploration
period, a second exploration well. Any potential excess costs of the
work program over the carried amounts shall be jointly paid by both
parties in proportion to their participating interest. In addition,
Shell will pay a cash consideration for a total amount of US$16.3
million, of which US$11 million is refundable to Shell should
Petromanas secure a partner for the other Petromanas blocks during the
current exploration period.
The Agreement is subject to customary closing conditions including the
receipt of all necessary regulatory and government approvals.
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
90 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 www.shell.com.
About Petromanas Energy Inc.
Petromanas is an international oil and gas company focused on the
exploration and development of its assets in Albania.