Manas Subsidiary Spuds First Mongolia Well

Manas Petroleum announced that on August 23, 2012 its subsidiary Gobi Energy Partners LLC., spud its first well in Mongolia.

Gobi Energy plans to drill this first well Ger Chuluu A1 to a depth of 1200 meters and into Jurassic/Paleozoic formation. Target horizons in Ger Chuluu A1 are Lower Zuunbayan and Tsagaantsav formations; both are Lower Cretaceous.

Gobi Energy anticipates that Ger Chuluu A1 should cost approximately $1.8 million, with the well reaching target depth and being logged mid-September 2012. In the event of a discovery, Gobi Energy plans to test the well with a workover rig and move the drilling rig to the site of the second exploration well, approximately 106 miles (170 kilometers) northeast of Ger Chuluu A1.

"Ger Chuluu A1 represents the next step in the evaluation of our Mongolian assets and a major step in the company development," said Werner Ladwein President of Manas Petroleum.

The 2012 seismic survey (a total of 208 miles or 335 kilometers) will be finished by August 25, 2012. The program consisted of detailed prospect seismic and regional seismic. The detailed prospect seismic forms the base for the 2012 and 2013 drilling locations.