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Manas (MNAP) update

August 28th, 2009 · 10 Comments

Just a couple of points to keep in mind..

  • Early results from the second well in Kyrgystan could be in next week, even as early as Monday. These are drilled by Santos (resulting from a $58M farm-out deal). The first well wasn’t too promising though, perhaps that explains the relatively mild reaction to the rather bullish Cohen report out this week.
  • Relatively short term there also could be a farm-out agreement for the Albanian properties, the most interesting of the five (an independent report by Gustavson indicates there could be several billions of barrels of oil). There is already some preliminary agreement.
  • We reiterate why we like Manas. They have five properties in five different countries, with a couple of serious farm-out deals already in place, showing serious interest and a nice risk spread. However, we keep stressing that it’s a high risk, high reward stock. None of these properties are producing yet, and there is no guarantee any of them will. Keep that in mind when you take investment decisions.
  • We think that a small position is warranted because the risk/reward situation (which is why we recommended one at 24 cents in March this year), but it’s not a stock for betting the bank.

Tags: MNAP

10 responses so far ↓

  • 1 Mike // Aug 29, 2009 at 7:47 am

    The real question is which comes first
    Bern at 100?
    Cairns at $100?

  • 2 Mike // Sep 1, 2009 at 9:14 pm

    correction: Baar, Switzerland at $100

  • 3 Mike // Sep 11, 2009 at 3:38 pm

    Manas Petroleum reports showings of Gas and
    Hydrocarbons within upper objective target of
    Huday Nazar prospect’s second hole drilling in
    Kyrgysztan
    BAAR, SWITZERLAND, September 11th, 2009.
    Manas Petroleum (OTCBB: MNAP) reports on the drilling progress of its second, deeper
    exploration well at the Huday Nazar SPC-1 (Soh License) Prospect with Santos International
    Pty. Ltd its Australian-based fellow Shareholders of SPC.
    After reaching a total depth of 1515m on August 31st, drilling operations proceeded with the
    running of the intermediate 9 5/8” casing, with a casing shoe successfully cemented from
    1515m to surface. A bottom hole assembly was run, and drilling cement to the 9 5/8” casing
    shoe at 1509m (measured depth from rotary table). Before 8 ½” drilling activity commenced
    to invest the primary objective section, a formation integrity test (FIT) at 14ppg mud weight
    equivalent was conducted on September 4th, 2009. Drilling is proceeding to currently 1840 m
    level. The primary objective targets are between 1690 and 2400m. The Top Paleocene
    formation was identified at 136m measured depth from rotary table, which is 21m deeper than
    the prognosis. The Upper Sheet Top Cretaceous formation was identified at 684m (MDRT)
    or 66.3m shallower than the prognosis. And the Top Jurassic formation was identified at the
    1485m (MDRT), or 200m shallower than the prognosis.
    A considerable thickness of sandstone layers was penetrated by the well in the interval of
    1355m-148m (MDRT), where some interesting gas and hydrocarbon showings were recorded.
    This interval could be identified with the expected objective target (Bed IV oil), but this has
    not been confirmed as yet from the geological reports. As the drilling program continues, the
    partners anticipate more interesting intervals in subsequent hole sections, where primary
    objective reservoirs are interpreted to occur between 1680m and 2400m below ground level
    which is total well depth. The Prospect was generated as a result of the processing of seismic
    shot in a recent 2D seismic program by SPC. (South Petroleum Company)
    The Huday Nazar replaces the previously planned drilling of the smaller and shallower East
    Chongora Prospect, which is also in the Soh License area. Acquisition of a total of 800 km of
    2D seismic within the SPC licenses was completed as of late May, 2009 and seismic
    processing and interpretation is ongoing as part of a $ 54 million USD seismic, appraisal and
    drilling program undertaken by Santos International Pty. Ltd.. Santos has the option to
    discontinue the program after drilling of the second well. Manas Petroleum has a 20% interest
    in the fully carried exploration program.

  • 4 Mike // Sep 17, 2009 at 4:22 pm

    UPDATE – Manas Petroleum Reports Drilling Activity in Huday Nazar Prospect Is On Track
    http://www.earthtimes.org/articles/show/manas-petroleum-reports-drilling-activity,963556.shtml

    Manas Petroleum Reports Drilling Activity in Huday Nazar Prospect Is On Track
    Posted on : 2009-09-17 | Author : Manas Petroleum Corp.
    News Category : PressRelease

    BAAR, SWITZERLAND — 09/17/09 — Manas Petroleum (OTCBB: MNAP) reports on the drilling progress of its second, deeper exploration well at the Huday Nazar SPC-1 (Soh License) Prospect with Santos International Pty. Ltd its Australian-based fellow Shareholders of SPC.

    Drilling activity has reached currently a depth of 1970m and drilling is going ahead for additional 430m to the target depth of 2400m.

  • 5 Mike // Sep 22, 2009 at 4:08 pm

    Manas Petroleum Corp.
    BAAR, SWITZERLAND, September 22nd, 2009.
    Shares of Manas Petroleum Corp. (OTC:MNAP) have been shorted “naked”, which involves selling a stock short but without the usual step of initially borrowing or locating the shares. As the shorted shares were not obtained within the required time frame it resulted in a “fail to deliver”.

    This is an illegal practice. We have informed on Friday Sept 18th the market regulation department of the SEC and the FINRA. We do not expect a report of these regulators until such issue is resolved.

  • 6 Mike // Sep 28, 2009 at 9:58 pm

    Manas Petroleum’s second shallow well in Kyrgyzstan confirms geologic model, Albanian project moves forward
    BAAR, SWITZERLAND, September 28th, 2009.

    Manas Petroleum (OTCBB: MNAP) reports that drilling of its second commitment (to the Kyrgyz government) exploration well at the Huday Nazar prospect in the Soh license area has reached a total depth of 2213m and is currently being evaluated.

    A thick Jurassic coal and sandstone sequence was penetrated in the deeper hole section and initial evaluation of mudlog gas shows with wireline logs is underway. Assessment of shallower hydrocarbon anomalies in the Paleogene section suggests they are not currently commercially feasible, however the geological model has been confirmed. The well data (mudlog gas shows with wireline logs) is being evaluated in conjunction with recently obtained seismic data to best determine a future drilling location to gain commercial feasibility.

    Erik Herlyn, Chief Executive Officer of Manas Petroleum comments: “Drilling the Huday Nazar SPC-1 (Soh License) well has showed our commitment to the Kyrgyz government, and provided valuable and encouraging information about the geologic section and the general petroleum prospectivity of the permits. A potentially significant Jurassic oil-gas-condensate play is clearly present in the Soh permit area, in addition to the oil-dominated Palaeogene play. By drilling the North Ayzar-1 (Tuzluk license) well and the Huday Nazar SPC-1 (Soh License) well SPC has fulfilled this year’s commitments in its priority exploration areas, according to the License Agreements with the Kyrgyz government. South Petroleum Company is now focusing on the 2010 well program, which will include the drilling of deeper prospects delineated by the recent seismic acquisition.”

    Albania

    In addition Erik Herlyn comments “Our focus right now is to finalize the financing of our large exploration project in Albania. Management is actively refining negotiations and will decide which arrangement best enhances shareholder value.” Manas now controls 100% working interest in six giant exploration blocks near Europe’s largest onshore production. Independent reports from Gustavson (2008) assign (P50) of 3 billion barrels in block A, B, D and E (12.3 Billion Oil in Place) which Manas controls. Two of Manas’ four blocks are now drill-ready. The council of ministers recently ratified the production-sharing contract on the two former Oxy blocks to DWM Petroleum, a subsidiary of Manas. These blocks are within the area where most of Bankers Petroleum’s current shallow oil production derives from. Manas has the rights to explore the deeper targets in block two where Bankers is producing oil, and where in 2001 Occidental made a light oil discovery. A 51-101-compliant estimate is now being prepared.
    Details of these projects are located on the Company’s website: http://www.manaspete.com .

  • 7 Mike // Nov 20, 2009 at 11:26 pm

    Manas Enters Into Letter of Intent to Sell A Portion of Its Interest in Its
    Albanian Project

    BAAR, SWITZERLAND, November 20th, 2009.

    Manas Petroleum (“Manas”) (OTCBB: MNAP) is pleased to report that it has entered into an arm’s length binding letter of intent (the “LOI”) dated November 19, 2009 with WWI Resources (“WWI”) a TSX-V listed company, pursuant to which Manas will sell all of the shares of one of its wholly-owned subsidiaries (the “Subsidiary”) in exchange for a minimum of 100,000,000 common shares and a signing bonus in cash. At or prior to closing, Manas will reorganize its affairs such that the Subsidiary will own 100% of Manas’ Albanian assets. The LOI provides that, after closing, WWI will be obligated to issue to Manas up to an aggregate of 150,000,000 additional WWI common shares upon the achievement of certain operational targets.

    Completion of the transaction is subject to, among other things, completion of due diligence satisfactory to both parties, execution of a definitive agreement, receipt of all necessary regulatory and shareholder approvals and completion of a private placement in which WWI will sell 100,000,000 units at a price of $0.25 per unit for gross proceeds of (Cdn) $25,000,000. Each unit will consist of one common share and one warrant, with each warrant entitling the holder to purchase a further common share at a price of (Cdn) $ 0.45 per share for a period of 5 years from closing.

    At closing, each of WWI and Manas will appoint 3 directors to the board of WWI and the current officers of Manas will be appointed as officers of WWI.

    At closing, the Subsidiary will hold three Production Sharing Contracts (PSCs) onshore Blocks in Albania that comprise 1.7 million net acres with 100% working interest. The PSCs are for Blocks A, B, D, E and for Blocks 2 & 3. There have been nine large structures identified in Blocks A, B, D & E and three structures on Blocks 2 & 3. In 2001, the Shpiragu 1 well was drilled by Occidental petroleum in Block 2. The Shpiragu-1 well averaged 400 -1,200 bbl/d of light oil, confirming an active hydrocarbon system. There are no known reserves on any of these properties.

    For further information please contact:
    Erik Herlyn
    Manas Petroleum Corp.
    Bahnofstr. 9 P.O. Box 155
    CH-6341 Baar, Switzerland
    Phone: +41 44 718 1030

  • 8 Mike // Dec 10, 2009 at 11:52 pm

    It does look like the deal will be done!

    Manas Reports Update on Albania Transaction
    http://finance.yahoo.com/news/Manas-Reports-Update-on-iw-3350307785.html?x=0&.v=1

    BAAR, SWITZERLAND–(Marketwire – 12/10/09) – Manas Petroleum Corporation (“Manas”) (OTC.BB:MNAP – News) is pleased to report that with respect to the Albanian project and the signed Letter of Intent between Manas and WWI resources (“WWI”)(TSX) dated November 19, 2009, both parties have agreed to extend the due diligence period in order to complete all required legal and documentary work.

    In conjunction with the above, Manas is further pleased to report that on December 4th, 2009 WWI made a good faith payment to Manas in an amount of approximately USD 1,000,000 in order to facilitate certain obligations on their part in connection with the project.

    The final agreement is currently prepared and Manas believes that the transaction will be closed shortly. We are currently updating our 51-101 compliant volumetric and economic reports on blocks A, B, D and E issued by Gustavson Associates in November 2008. In addition to that we are preparing similar reports on the discovery blocks 2 and 3.

  • 9 Mike // Feb 9, 2010 at 9:24 pm

    Press Release Source: Manas Petroleum Corp. On Tuesday February 9, 2010, 12:35 pm
    BAAR, SWITZERLAND–(Marketwire – 02/09/10) – Manas Petroleum (“Manas”) (OTC.BB:MNAP – News) is pleased to report that it and WWI Resources (a TSX-V listed company) have extended their arm’s length binding Letter-Of-Intent (LOI) dated November 19, 2009 in order to allow Manas the necessary time to finalize all administrative procedures as required and are a part of the closing of the transaction. Manas is moving forward diligently and quickly to complete all requirements.

    At closing, the Albanian Subsidiary will hold three Production Sharing Contracts (PSCs) for on-shore Blocks in Albania that comprise 1.7 million net acres with 100% working interest.

    The PSCs are for Blocks A, B, D, E and for Blocks 2 & 3. There have been nine large structures identified in Blocks A, B, D & E and three structures on Blocks 2 & 3. It is important to note that Block 2 is within the area where Bankers Petroleum’s (BNK.TO) current shallow oil is derived. Manas has the right to explore and produce oil from the deeper targets.

    In 2001, the Shpiragu-1 well was drilled by Occidental petroleum in Block 2. The Shpiragu-1 well averaged 400 – 1,200 bbl/d of light oil; no reserve calculations were done at that time; however, the Shpiragu-1 confirmed that a deep active hydrocarbon system exists

  • 10 Mike // Feb 24, 2010 at 8:48 pm

    http://finance.yahoo.com/news/Manas-Completes-Albanian-iw-1837272783.html?x=0&.v=1