Petromanas completes seismic operations in Albania

Petromanas announced the completion of 2D seismic operations on Blocks D and E onshore Albania incident free.

The 105 km of 2D seismic acquired on Block D and E fulfils the work commitments for the first exploration phase on those blocks. The interpretation of this new data and correlation with existing data will improve the quality of the existing prospect inventory and allow the geoscience team to reduce the exploration risk and high grade its exploration prospects.

Petromanas continues as planned with its seismic operations on Blocks 2 and 3. This seismic program is anticipated to be completed by early 2011. All operating licences and permits have been received, surveying and drilling operations for seismic shots are underway. This program includes 140 km of 2D seismic survey and will provide valuable data near the Spiragu discovery which was drilled in 2001. The majority of the seismic work will be carried out with heliportable rigs and the remainder through conventional shallow drilling rigs.

In conjunction with the seismic work, the Company is re-evaluating the un-risked resource assessment which was prepared on December 15, 2009 by Gustavson Associates LLC based on the seismic, geology and limited well data which was available at the time. In the normal course of the current geophysical and geological ("G&G") work, the risked resource potential will be evaluated and, as a result of incorporating risk assessments and new data, will be lower than the un-risked resource potential numbers which were presented in the Gustavson report.

The G&G analysis will be underway through year end as the new seismic data becomes available. It is anticipated that an updated independent resource evaluation report will be prepared early in 2011. Further updates to resource estimates will be prepared as the Company acquires new data from seismic programs and drilling operations. The geological work conducted to date has further confirmed the significant potential of the Petromanas acreage and the exploration prospectivity of both the shallow and deep prospects. Once Petromanas has the necessary data, it is anticipated that some of the deep target plays will be farmed out to industry partners. The Company remains on schedule for the planned completion of the seismic program leading to a drilling campaign in 2011.