Petromanas Provides Update on Drilling of Shpirag-2 Well

March 15, 2013

Petromanas Energy Inc. ("Petromanas" or the "Company") (TSXV: PMI) today provided an update on the drilling of its Shpirag-2 well.

Following the sidetrack announced on February 11, 2013, the Company took a number of additional steps to mitigate instability in the lower flysch shale zone above the target carbonate reservoir. Petromanas believes these measures contributed to improved hole stability and afforded a period of solid drilling progress that saw the well reach a depth of approximately 5,275 metres in the upper carbonate zone. Subsequently, the bit became stuck and additional hole instability was experienced. During drilling, and prior to the loss of circulation, the Company observed indications of the presence of oil and gas in the drilling cuttings from the upper carbonate.

On this basis, the Company is sidetracking the well at a depth of approximately 4,810 metres. After the well re-enters the upper carbonate section, the Company intends to set casing from the previous casing depth of approximately 4,750 metres to put the lower zone of unstable flysch shale behind pipe.

"We have seen positive early indications with respect to the presence of hydrocarbons but still face challenges with the very complex and active geology of the region, which continues to cause instability in the open portion of the hole," said Mr. Glenn McNamara, CEO of Petromanas. "While our preference was to drill through the carbonate with a larger hole, we feel it is prudent at this point to put the entire flysch shale zone behind casing so that we can avoid further instability above the target and focus on penetrating the carbonate zone to a sufficient depth to complete a better assessment of its potential. Shell continues to actively participate in our initiatives on Blocks 2-3 and brings extensive carbonate drilling and completions experience to the project gathered from operations both regionally and around the world."

Once the Shpirag-2 well reaches total depth the Company plans to log, complete and flow test the well. Planning and logistics in preparation for well completion and test operations have been finalized. Total costs to drill the well to this point are approximately US$53 million or approximately US$14 million net to Petromanas. Management estimates the total costs to drill the well to the target depth of 5,800-6,000 metres at approximately $67 million gross.

SOURCE: Petromanas Press Office