PETROMANAS ENERGY INC (PMI-TSX Venture) UPDATE REPORT

Petromanas is an exploration stage international oil and gas company focused on high impact exploration onshore Albania. It was formed via a reverse take‐over transaction involving the acquisition by shell WWI Resources Ltd. of Manas Adriatic GmBH (holder of a 100% working interest in six exploration stage blocks onshore Albania), concurrent with a $25 million equity financing which closed on February 24, 2010 [see our heads-up alert on WWI Resources Dec 5, 2009 and Initial Report on Petromanas Feb 25, 2010].

On May 27, 2010 the company raised $75 million, issuing 187.5 million units at a price of $0.40 per unit with each unit consisting of one common share and one‐half of one common share purchase warrant. Quantum Partners Ltd., a private investment fund managed by Soros Fund Management, LLC subscribed for 72,500,000 Units. Investment Funds managed by Columbia Wanger Asset Management subscribed for a total of 65,000,000 Units.

Including this recent capital raise, the company has about $87 million in working capital. In addition to 615.7 million shares outstanding, there are 237.8 million warrants and options (100 million expiring February 2015 with a strike of $0.45/share, and 93.8 million expiring May 26, 2012 with a strike of $0.60/share and a call option at $1.10/share).

Similar to hugely successful Bankers Petroleum, the Endeavour Financial group is behind the formation of this deal. Bankers and its shareholders enjoyed significant success with their Albanian oil field reworks, and while a very different type of play, Petromanas also has an exceptional risk-reward profile.

10-05-30 PMI Growth Stocks Weekly