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Operational and Financial Highlights for 2011

April 2, 2012

BAAR, Switzerland, April 2, 2012 /PRNewswire/ — Manas Petroleum Corp. (“Manas”) (TSX-V: MNP; OTCBB: MNAP) has filed its annual report on Form 10-K for the year ended December 31, 2011 on EDGAR and on SEDAR. (www.sedar.com or www.sec.gov). The following provides you with a review of some of the highlights:

Highlights 2011

  • Completed seismic program in Mongolia to establish prospect portfolio as base for drilling campaign 2012
  • Started seismic in Tajikistan with ratification of the PSA outstanding
  • Drilling planning in all ventures started
  • Shell subsidiary farms in to Blocks 2&3 of the Albanian Project

Operations Review

Mongolia

A 2D seismic contract with Sinopec was signed on 12 July 2011, providing for a firm program consisting of 532 km full fold data and an optional program of up to an additional 1,106 km full fold data. The program consisted of eight phases. A total of 1,311 km full fold data, 615 km in Block XIII and 696 km in Block XIV, was acquired without any incident. On November 25, 2011 we completed the seismic program after having acquired all necessary data to establish a prospect portfolio. We are currently focusing on six areas in an effort to spud the first well by the end of the second quarter of 2012.

Tajikistan

Although ratification of the Production Sharing Agreement (“PSA”) is outstanding, we have begun the acquisition of seismic data. A Seismic acquisition contract was signed with Dank (Kazakhstan) on June 29, 2011. During the second half of 2011 we acquired 394.44 km of additional 2D seismic data and started to plan for the first two wells. Ratification of the PSA remains the last hurdle to Santos International Ventures Pty Ltd.’s decision to exercise its farm-in option.

Kyrgyzstan (25% interest in CJSC South Petroleum Company)

A review of the prospect portfolio has begun. The re-evaluation and its documentation have not been finalized yet, but as Kyrgyzstan is part of the overall Fergana strategy, the operation in Kyrgyzstan has to be aligned with the operation in Tajikistan.

Albania (31.7% equity interest in Petromanas Energy Inc.)

Petromanas entered into a farm out agreement with a wholly owned subsidiary of Royal Dutch Shell plc (“Shell”), whereby Shell will farm into the rights of Petromanas on onshore exploration Blocks 2&3 comprising approximately 852,000 acres onshore Albania. Under the terms of the Agreement, Shell will acquire a 50% participating interest in the Blocks 2&3 in exchange for payments and carried costs up to USD $50.3 million. This agreement is subject to customary closing conditions, including the receipt of necessary regulatory and government approvals. Petromanas will continue to act as operator of the Blocks 2&3. Drilling planning for the three commitment wells in 2012 has started; spudding of the first well should be in Q2 2012. More details on www.petromanas.com.

Chile

The divestment of our project in Chile was completed.


    Financial Status at year end 2011

    Condensed Statement of Operations,
     USD                                             2011         2010
    ----------------------------------               ----         ----
    General & Administration                    4,383,875    5,191,856
            -of which Personnel
             worldwide                        2,258,383    3,700,864
    Consulting                                    976,870    2,263,856
    Exploration                                 4,699,518    1,965,606
    Total Operating Expense                    10,060,263    9,421,318
    -----------------------                  ----------    ---------

    31.7% Shareholding in Petromanas
            - Fair Value                     29,366,063   72,257,882
            - Change in Fair Value          (42,891,819)  25,851,061

The increase in our total operating expenses is mainly attributable to higher exploration activities related to our project in Mongolia. Personnel expense and consulting expense mainly decreased due to lower stock-based compensation charges.

The decrease in fair value of Petromanas (TSX-V: PMI) of $42,891,819 is mainly due to the share price decline from CAD 0.40 at the beginning of the year to CAD 0.155 at December 31, 2011.

Net loss for the twelve-month period ended December 31, 2011 was $(53,015,719) as compared to net income of $74,442,353 for the same period in 2010, when we recorded the initial gain from sale of Manas Adriatic of $57,850,918 and a subsequent increase in fair value of $25,851,061.


    Liquidity and Capital Resources,
     USD                                           2011         2010
    --------------------------------               ----         ----
    Cash and Cash Equivalents                13,629,370    1,736,571
    31.7% Shareholding in Petromanas         29,366,063   72,257,882
            - Eligible for Resale          16,678,651    9,970,000
    Total Shareholders' Equity               41,621,337   71,723,484
    --------------------------               ----------   ----------

About Manas Petroleum Corp.

Manas Petroleum is an international oil and gas company with primary focus on exploration and development in South-Eastern Europe, Central Asia and Mongolia. In Albania, Manas participates in a 1.7 million acre exploration project through its equity interest in Petromanas Energy Inc., a Canadian public company. In the Kyrgyz Republic, Manas has signed a US$54 million farm-out agreement with Santos International Holdings Pty Ltd., a subsidiary of Australia’s third largest oil and gas company. In addition to the development of its Kyrgyz Republic project, Santos is developing the company’s neighboring Tajikistan license under an option farm out agreement. In Mongolia, Manas owns record title to the two Production Sharing Contracts covering Blocks XIII and XIV through its wholly-owned subsidiary DWM Petroleum AG, but 26% of the beneficial ownership interest in these blocks is held in trust for others.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information please contact:


    Roger Jenny
    Corporate Secretary
    Manas Petroleum Corp.
    Bahnofstr. 9, P.O. Box 155
    CH-6341 Baar, Switzerland
    Phone:                     +41 44 718 1030
    Fax:                       +41 44 718 1039
    Email:  info@manaspete.com
    Web:    www.manaspete.com

Cautionary Note:

Information provided in this Press Release pertaining to the exploration projects in the Kyrgyz Republic and Albania has been provided to Manas Petroleum Corporation by the operators of those projects, with which Manas Petroleum deals at arms length, and is included in this Press Release in an effort to share that information with the public. Although Manas Petroleum has no reason to doubt the accuracy of this information, it expressly disclaims responsibility therefor and makes no representation or warranty that it is complete or correct.

Forward-Looking Statement Disclaimer

This press release contains forward-looking statements. Forward-looking statements are projections of events, revenues, income, future economic performance or management’s plans and objectives for future operations. In some cases you can identify forward-looking statements by the use of terminology such as “may”, “should”, “anticipates”, “believes”, “expects”, “intends”, “forecasts”, “plans”, “future”, “strategy”, or words of similar meaning. Forward-looking statements in this press release include statements about Manas’ effort to spud the first well in Mongolia by the end of the second quarter of 2012, its expectation that ratification of the PSA in Tajikistan remains the last hurdle to Santos’ decision to exercise its farm-in option, and its expectation that the first well in Albania should be spudded in Q2 2012. While these forward-looking statements and any assumptions upon which they are based are made in good faith and reflect current judgment regarding the direction of Manas’ business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this press release. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks presented by the market price and volume of trading in shares of Petromanas Energy Inc., field conditions and the risks described in Manas’ periodic disclosure documents filed on SEDAR and EDGAR, copies of which are also available on the company’s website at www.manaspetroleum.com. Any of these risks could cause Manas’ or its industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Except as required by applicable law, including the securities laws of the United States and Canada, Manas does not intend to update any of the forward-looking statements to conform these statements to actual results.

SOURCE Manas Petroleum Corp.


Source: PR Newswire