Petromanas Energy Canada reports progress in its Albania drilling project

, SEE Energy News

Canada-based oil and gas company Petromanas Energy has completed casing of Shpirag-2 well to the top of the main objective carbonate reservoir at a depth of 5,164m, in Albania.

The company has cased the well from a depth of about 4,750m to keep the lower zone of unstable flysch shale behind pipe.

Petromanas is currently drilling the well at a depth of about 5,200m in the upper carbonate zone.

The total cost to drill the well so far has been about $60m or $17m net for Petromanas. To drill it to the target depth of 5,800m, the company is expected to spend about $67m gross.

The company is about to complete the logistics planning and sourcing testing programme for the Shpirag-2 well and plans to implement it once the well reaches total depth.

Petromanas Energy CEO Glenn McNamara said the company will now focus on the carbonate target zone, since the well completed casing without any instability in the hole.

“We and our partner remain committed to drilling the target carbonate zone to a sufficient depth so we can run logs and gather sufficient information to assess the potential of this prospect,” McNamara added.

Italy’s Geotec has begun survey work and drilling of shot holes on Blocks 2-3, as part of the 2013 seismic programme.

Petromanas will spend initially $20m on the Blocks 2-3 seismic programme, as part of its farm-out agreement with Royal Dutch Shell, while excess costs will be shared equally by both parties.

The company has signed three production sharing contracts (PSCs) with the Albanian government, which include 100% working interest in Blocks A, B, D, and E and a 50% working interest in Blocks 2 and 3 that comprise about 1.4m gross acres in Berati thrust belt.

In March 2013, Petromanas announced that it has taken additional steps to reduce instability in the lower flysch shale zone above the target carbonate reservoir in the Shpirag-2 well in Albania.