Manas Petroleum: An Exceptional High-Impact Exploration Opportunity
(Vocus) November 11, 2009 -- Albania possesses important oil reserves and produces about 350,000 tons of oil annually. Driven by high oil prices, the need for energy security in Europe, and a strategically desirable location close to all European markets, Albania is an active oil marketplace with several companies negotiating or seeking to negotiate for acreage. Large independents and major oil companies have been operating in the country for a number of years and the government has a clear policy to attract foreign investment in its natural resource sector. Petroleum was the first industry to attract direct foreign investments in Albania when the government successfully negotiated with foreign drilling and exploration firms for onshore and offshore prospecting. In the last 15 years, the country has licensed drilling to American, Austrian, Canadian, Croatian, Greek, and Swedish companies.
Similar to the Production Sharing Agreement's potential, Albania's political and business prospects have dramatically improved as the Country is becoming one of the most pro- business governments around. Albania is a small country with a population of only 3.5 million. Consequently, the financial and technical assistance from the EU is quickly having a dramatically positive effect. The country is being rebuilt with the help of billions of Euros from the EU in conjunction with Stabilization and Association Agreement (SAA) between the EU and Albania. At the same time, the inflow of investment from Albanians abroad is estimated to exceed $1 billion annually. As a further indication of its improved stability and prospects Albania joined NATO in 2008 and is currently undertaking key steps to become an EU member.
In addition to the greatly improved political and business environment Albania has a very favorable tax system for petroleum exploration and development. Royalties on oil production in Albania range from 10% to 15% while taxes on net profits are 50%.
With the above in mind here is the basic concept of the opportunity. Manas Petroleum (OTCBB:MNAP) is a niche oil company that has been quietly amassing a massive portfolio of giant on-shore oil projects that are likely to be low cost producers. Manas now has one of the world’s largest onshore light oil exploration projects in Albania. It is (safely) in Europe and only 20 miles north of continental Europe’s largest oil field. According to the combined conclusions of super-major Shell and a French company, Coparex, one prospect has the potential to produce over 800 million barrels of light oil. But the project has grown much larger. The council of ministers recently ratified the production-sharing contract on the two former Occidental blocks to DWM Petroleum, a subsidiary of Manas.
Manas now has what it considers Albania's greatest exploration assets as it controls 100% working interest in 6 giant exploration blocks in Albania with a proven oil system. Work by US engineering firm Gustavson & Associates (They also have done work for America’s IRS, Department of Energy, the World Bank and companies like Conoco and Chevron) concludes the potential reserves exceeds a tremendous 3 billion recoverable barrels. The prospects include conventional exploration targets involving sub-thrust hydrocarbon accumulations in fractured carbonates. These projects clearly have excellent economics as Gustavson estimates that the cost of production for any deep oil developed from Manas' light oil resource to be a mere $2 per barrel. In its assessment, Gustavson reported: "The probability of success for a wildcat well in a structural complex area such as this is relatively high (because) it is in a structurally favorable area (and) proven hydrocarbon source and analogous production exists only 20 to 30 kilometers away."
Manas expects drilling of this giant play to begin by mid-2010 with the drilling of an appraisal well at the Sphiragu discovery in blocks 2 and 3. The light oil is definitely there and equally as important Manas has put together a formidable geological team of top exploration managers from Shell, OMV and Occidental Petroleum to exploit the resource. Manas has spent significant time and money to get to this point and we believe they have the people and projects to make it a success and that the timing could not be better. The potential is astonishing and very real considering that the work done by Manas and their predecessors on the 6 exploration blocks adds up to more than 70 million dollars. For more information please visit the Manas Petroleum website at www.manaspetroleum.com.
Kevin McKnight
1-800-404-8982
Undiscovered Equities, Inc.
1515 S Federal Hwy, Ste 207
Boca Raton, FL 33432
# # #
Comment on "Manas Petroleum: An Exceptional High-Impact Exploration Opportunity"
