Getting the 'lay of the land' in Albania's Velca Block
April 21, 2016
By N. Desmond Smith, Chief Financial Officer
We’ve been excited about the prospects of Pennine’s potential entry into the Albanian oil market for several months now.
Pennine Petroleum Corporation leadership has again been on site at the Velca Block to examine the lay of the land and existing well bores—and I can tell you that we’re more intrigued than ever.
Earlier this month, Pennine chief executive officer John Garden and I toured Albania, where, in early December, we received notification that Pennine had been confirmed by the Republic of Albania’s Ministry of Energy as the successful bidder for the Velca Block.
John and I toured the Velca Block, which covers an area of more than 153,000 acres (that’s 239 square miles, or 620 square kilometers), and left with a genuine sense of excitement after touring proposed wellsites—especially after seeing oil seepage in road cuts within the territory.
As we've mentioned in previous news releases, the Velca Block is situated in the southern portion of Albania, about 10 km southeast of the city of Vlore.
A little over a year ago, Albania’s National Agency of Natural Resources (“AKBN”) remarked that the Velca Block contains 250 km of 2-D seismic and two drilled hydrocarbon-indicative wells. A seismically defined structure has been identified with a closure of 12 square km in area, with a vertical closure of between 450 vertical meters (mid case) and 750 vertical meters (maximum case).
The hydrocarbon reservoirs associated with the Velca Block are Ionian sub thrust carbonates, similar in structure to reservoirs of the foothills of western Alberta.
We expect that the finalization of the production sharing agreement with Albpetrol will proceed to conclusion in the near future.