A unit of Royal Dutch Shell will take a farmout from Petromanas Energy Inc., Calgary, on 852,000 acres in the Berati thrust belt onshore Albania.
Shell will acquire a 50% participating interest in blocks 2 and 3 in exchange for $50.3 million in payments and carried costs. Petromanas will continue to operate the blocks.
Under a definitive agreement, Shell will carry Petromanas on a work program of as much as $22.5 million in the first exploration period and subject to entering into the second exploration period, a second exploratory well. Both parties will pay any potential excess costs of the work program over the carried amounts in proportion to their participating interest.
Shell will also pay $16.3 million in cash, of which $11 million is refundable to Shell should Petromanas secure a partner for the other Petromanas blocks during the current exploration period.
The Agreement is subject to customary closing conditions including the receipt of all necessary regulatory and government approvals.
Petromanas holds three production sharing contracts with the Albanian government that give the company a 100% working interest in blocks A, B, D, and E in addition to its 50% working interest in blocks 2 and 3. The six blocks cover more than 1.4 million gross acres on the thrust belt.