PMI

BAAR, Switzerland, Nov. 14, 2012 /PRNewswire/ -- Manas Petroleum Corp. ("Manas") (TSX-V: MNP; OTCBB: MNAP) has filed its quarterly report on Form 10-Q for the nine months ended September 30, 2012 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 Q3 2012

• Mongolia: Finalized seismic campaign of 335km and completed two wells in the Ger Chuluu sub-basin
• Tajikistan: Santos exercised its farm-in option to acquire 70% of our equity in Somon Oil subject to finalization of transaction documents
• Business Development: Exercised option agreement to purchase producing assets in Central Asia in 4^th quarter 2012

Operations Review

Mongolia

During the third quarter 2012, our Mongolian subsidiary, Gobi Energy Partners LLC finalized the 2D seismic acquisition of 335 kilometers in Block XIII and Block XIV. Processing and interpretation are still ongoing. Also, Gobi Energy Partners LLC spudded its first well, Ger Chuluu A1, on August 23, 2012. It stopped drilling at a depth of 1098 meters without having encountered any seal. The initially planned second well East Sainshand A1 is located in another sub-basin 170 kilometers away. In order to have a conclusive evaluation of the Ger Chuluu sub-basin, it was decided to drill a second well before moving to East Sainshand.

Ger Chuluu D1 was spudded on September 21, 2012 and was stopped after reaching 600 meters without any hydrocarbon shows. Seal and Reservoir were encountered as expected; however, this basin did not seem to generate any hydrocarbons and therefore is not considered anymore as a target.  Due to seasonal conditions, the next prospect, East Sainshand A1, can only be drilled in 2013. The evaluation of the Southeastern part of Block XIII will be finalized in the fourth quarter.

Tajikistan

During the third quarter 2012, our Tajik subsidiary, CJSC Somon Oil has been finalizing processing and interpretation of the seismic acquisition program finished in April 2012. Preparations for drilling of the first two wells, West Supetau and Karykkum, are ongoing. Pursuant to a deed dated August 6, 2012, Santos International Ventures Pty Ltd ("Santos") exercised its option to acquire 70% of the equity of Somon Oil.

As provided in the deed, the exercise of the option, which was originally granted to Santos under an Option Agreement dated December 10, 2007, is subject to the negotiation and execution of definitive agreements, including a farm-in agreement and a shareholder agreement. As provided in the deed and after settlement of the definitive agreements, Santos Netherlands B.V., an affiliate of Santos, together with a third party, intends to farm-in to 70% of the equity interest in Somon. The remaining 30% will be owned by DWM Petroleum AG ("DWM"), a wholly-owned subsidiary of Manas (as to 20%) and Anavak Limited Liability Company (as to 10%). The negotiations on the farm-in and shareholder agreement have not been finalized yet.

Kyrgyzstan

During the third quarter of 2012, South Petroleum Company, in which we own a 25% minority equity interest, continued to provide support for drilling planning and seismic operations in Tajikistan. Finalization of the reports in Kyrgyzstan is ongoing.

Albania (15.8% equity investment in Petromanas Energy Inc.)

Petromanas continued to drill and expects the well to reach target depth of approximately 6,100 metres either in late 2012 or early 2013. Testing is expected to follow reaching total depth. Further, drilling of the Juban-1 well is expected to begin in the fourth quarter of 2012. Petromanas intends to drill the well to a target depth of approximately 2,600 meters.

On June 30, 2012, we owned 200,000,000 shares of Petromanas Energy. Since that date, we sold 100,000,000 of these shares to various purchasers and we have agreed not to resell the remaining 100,000,000 until August 14, 2013 without prior agreement with some of those purchasers, unless, before that date, the market price per share equals or exceeds CAD 0.60 for five business days.  Of the 100,000,000 common shares of Petromanas held by us at September 30, 2012, none were currently eligible for immediate resale.

More details on www.petromanas.com.

Business Development

During the second quarter of 2012, DWM Petroleum AG, a wholly-owned subsidiary of the Company, entered into an option agreement with an unrelated third party pursuant to which the third party granted to DWM Petroleum an option to purchase 80% of the equity of a company that owns producing oilfield assets in Central Asia. 

On May 8, 2012, DWM Petroleum wired an initial refundable cash deposit to the third party in the amount of USD 5 million.  On July 3, 2012, DWM Petroleum made a second refundable cash deposit in the amount of USD 2 million. On August 17, 2012 a third refundable cash deposit in the amount of USD 3 million was paid. These cash deposits have been recorded on our balance sheet as "Transaction Prepayment". Under the terms of the option agreement, this cash deposit remains fully refundable until DWM Petroleum exercises the option and the parties sign a definitive purchase agreement. 

On October 23, 2012, DWM Petroleum exercised the option subject to the seller taking certain actions and to successful negotiation of the share purchase agreement. The transaction prepayment of USD 10 million will be netted against the final purchase price which remains to be negotiated.

Financial Status as of September 30, 2012

Total operating expenses increased in all segments. Increased exploration activity, especially in Mongolia, resulted in higher exploration and personnel costs.  Consulting expenses increased due to increased exploration activity at our projects in Mongolia and Tajikistan.

Net loss for the nine month period ended September 30, 2012 was USD 6,800,120 as compared to net loss of USD 54,858,940 for the same period in 2011.

*  On September 30, 2012, we owned 100,000,000 common shares of Petromanas representing approximately 15.85% of the issued and outstanding common shares of Petromanas. On December 31, 2011 we owned 200,000,000 common shares representing approximately 31.7% of the company.

The value of our investment in associate Petromanas (TSX-V: PMI) was positively affected by USD 6,306,060 due to the PMI share price appreciation from CAD 0.155 at the beginning of the year to CAD 0.20 at September 30, 2012. The value was reduced through the sale of 100,000,000 shares worth USD 15,623,045 (gross proceeds of USD 12,115,648). The proceeds are used to fund our proposed acquisition of producing assets in Central Asia and for working capital.

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 15.8% equity interest in Petromanas Energy Inc., a Canadian public company. In the Kyrgyz Republic, Manas has a USD 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 licenses under an option farm out agreement.  In Mongolia, Manas owns 74% working interest in two Production Sharing Contracts covering Blocks XIII and XIV through its wholly-owned subsidiary DWM Petroleum AG.

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:

Ari Muljana
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' intension to acquire producing assets in Central Asia through an option agreement entered with a third party, its plans to drill in Mongolia, the third of three wells in 2013, and its expectation that the evaluation of the Southeastern part of Block XIII will be finalized in the fourth quarter, statements about the proposed percentages of the equity interest in Somon and Petromanas' expectation and intention regarding the depth of a well and testing following reaching total depth and drilling of the Juban-1 well. 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.