Manas Petroleum announces spud of second well in Mongolia

Baar, (PresseBox) - Manas Petroleum ("Manas") (TSX-V: MNP; OTCBB: MNAP) announces that its subsidiary, Gobi Energy Partners LLC., plans to spud its second well in Mongolia on September 20, 2012.

Although Gobi Energy had originally planned to drill its first well - Ger Chuluu A1 - to a depth of 1,200 meters, it stopped drilling at a depth of 1098 meters without having encountered any seal. Well costs should amount to approximately USD 1.1 million. Gobi Energy had also planned to drill its second well - East Sainshand A1 - in another sub-basin of the East Gobi Cretaceous basin, which is located approximately 170 kilometers away from Ger Chuluu, but management has decided to drill a second well in the Ger Chuluu sub-basin before moving to East Sainshand A1 . Management believes it is important to have a conclusive evaluation of the Ger Chuluu sub-basin and a high degree of comfort that Gobi Energy is not leaving untapped potential behind.

Goby Energy drilled Ger-Chuluu A1 in an effort to prove the extent of the Zuunbayan sub-basin petroleum system. The well was based on detailed 2D seismic associated with a passive seismic survey and was drilled on top of the structure. Both Lower Cretaceous source rocks and reservoirs were documented in the vicinity by outcrop studies. One of the key assumptions of the model was the continuity of the source/seal formation (Zuunbayan formation) over the structure - as indicated in outcrops. Unfortunately the inversion of the targeted anticline proved to be higher than expected. Only a few meters of shale were encountered by Ger Chuluu A1 and therefore the well-developed reservoirs of the Lower Cretaceous Tsagaantsav formation were water bearing, although Gobi Energy did find some indication of remnant oil.

In locating the second well - Ger-Chuluu D1 - Gobi Energy has considered the lessons learned from Ger-Ghuluu A1 and is targeting a mixed stratigraphic-structural trap on the eastern flank. Gobi Energy intends to drill this well to a total depth of 650 meters at a cost of approximately USD 0.7 million.

"To depart from the Ger Chuluu sub-basin without having a conclusive test of its potential, especially after considering the knowledge we gained from Ger Cherluu A1, would not fit our Mongolian exploration strategy for the East Gobi Basin", said Werner Ladwein, President of Manas Petroleum.

Gobi Energy's plans to drill East Sainshand A1, located 170 kilometers away, during the current year will now depend mainly on a smaller seasonal window.

MNP Petroleum Corporation

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 Kyrgyz Republic, Manas has signed a US$54 million farm-out agreement with Santos International, a subsidiary of one of Australia's largest oil and gas companies. In addition to the development of its Kyrgyz Republic project, Manas participates in an oil and gas exploration project in neighboring Tajikistan through its subsidiary Somon Oil; Santos has exercised its option to farm in. In Mongolia, Manas owns 74% working interest in two Production Sharing Contracts covering Blocks XIII and XIV through its wholly-owned subsidiary Gobi Energy Partners GmbH.

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