Canadian Pennine Petroleum Corporation announced that it has signed the main terms and conditions of a production sharing agreement for the Velca Block, in southern Albania, with licensee Albpetrol Sh. A. (“Albpetrol”), the national oil company of Albania.
The Velca Block, covering an area of 153,215 acres (239 square miles, or 620 square kilometers), is located 10 km southeast of the Albanian coastal city of Vlore. Pennine previously announced in early December that it had been confirmed by the Republic of Albania’s Ministry of Energy and Industry as the successful bidder for the Velca Block.
The Velca Block contains 250 kilometers of 2-D seismic and two drilled hydrocarbon-indicative wells. A seismically defined structure has been identified with a closure of 12 square kilometers in area, with a vertical closure of between 450 vertical meters (mid case) and 750 vertical meters (maximum case).
“The finalization of the production sharing agreement with Albpetrol is expected to proceed to conclusion in the near future, now that the main terms have been established,” says John Garden, Pennine’s Chief Executive Officer.
“Working in the Republic of Albania, and respecting its established legislation and regulations, will generate significant interest to the shareholders of Pennine and the people of Albania,” adds Mr. Garden. “And with the recent appointment of (former Bankers Petroleum Ltd. President, Chief Operating Officer and Director) Richard Wadsworth to our team, as an independent director, we expect a seamless integration of Pennine into the Albanian oil and gas exploration and development industry.”