Petromanas, Shell To Spud Shpirag-3 Well in Albania by June 2016

Petromanas said that, together with Shell, it expects to use the new rig to spud the Shpirag-3 well in Albania by June 2016.

“We continue to advance our appraisal plan around the discovery at Shpirag-2, even in the face of lower commodity prices, as we look to assess the longer term value of our assets," Glenn McNamara, CEO of Petromanas, said on Monday. 

The 3,000 horsepower drilling rig should be shipped to Albania in late 2015 or early 2016. 

Petromanas added that, under the terms of its farm-out agreement with Shell, the initial $42.5 million of the cost of drilling Shpirag-3 will be carried by Shell with any excess paid by each party according to their participating interest. Petromanas holds a 25% working interest in Blocks 2-3 and is currently the operator, with Shell holding the remaining 75% interest. 

In August 2015, Petromanas and Shell were announced to be the successful bidders for Block 4, onshore Albania. Block 4, which is located southeast of Blocks 2-3, spans approximately 560,000 gross acres (874 sq miles).