Canada-based oil and gas exploration company Petromanas Energy has reported indications of oil and gas during the drilling of Shpirag-2 well in Albania.

The company is drilling the Shpirag-2 well in the target carbonate reservoir at a depth of about 5,400m.

So far the costs associated with the drilling of the well to the point has been about $65m or $20m net to Petromanas.

Petromanas has estimated the total costs to finish drilling of the well to the target depth of 5,800m will be around $75m gross or $25m net to Petromanas.

The logistical planning and equipment sourcing for the well completion and testing program is in the final stages and the equipment is expected to be mobilized as the well approaches total depth.

Petromanas Energy CEO Glenn McNamara said the drilling of the well will continue in the slim hole.

"The well is drilling deviated to intersect as many fractures as possible as we drill into the carbonate reservoir," McNamara added.

"We continue to observe indications of the presence of oil and gas in the drilling cuttings in the target carbonate section of the hole."

The company has completed recording the first line of 2013 2D seismic program covering up to 400km in Blocks 2-3, and is progressing on the second planned line.