Petromanas Energy Inc. is a Calgary headquartered international oil and gas company focused on the exploration and development of assets in Albania that possess world-class resource potential. The Company's shares are listed on the TSX Venture Exchange under the symbol "PMI".
Edison Investment Research says Petromanas "worth a look"
Edison Investment Research has issued a note on Petromanas Energy (CVE:PMI), the Calgary-based company focused on the exploration and development of oil and gas assets in Albania.
Petromanas has "significant" onshore acreage in Albania, Edison said, holding six blocks covering 1.4 million gross acres. It also has a joint venture with Shell (NYSE:RDS.A) and catalysts could generate significant value realisation in the coming months.
Shell farmed-in to Petromanas’s Blocks 2-3 in February, gaining a 50 per cent interest in return for payments and carried costs up to $50 million. The block holds the Shpirag structure, which has a prospective unrisked resource volume of 233 million barrels of oil equivalent (boe).
"With the confidence in the acreage implied by Shell’s farm-in, and two potentially transformative well results in the coming months, we believe that for investors comfortable with high risk oil exploration, Petromanas is worth a look," Edison analyst Will Forbes said in the note.
The company's Shpirag-2 well, which spudded June 30, is targeting 233 million boe and the Juban-1 well - 54 million boe gross - should spud shortly, the Edison analyst wrote.
Results for both could come in December or early January and successful discoveries could be "transformative for the company".
"As a result, the chance of success is higher than many exploration wells, although the company is drilling for deeper, unexplored targets and OXY’s drilling highlighted technical challenges," the Edison analyst wrote.
Petromanas recently acquired Gallic Energy, a French-focused company that should provide good synergies with Petromanas’s carbonate expertise in Albania. The deal is expected to close in the fourth quarter of 2012.