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ICYMI: Velca Block estimate pegs ‘best-case’ scenario at 26-million barrels

Independent technical report gives ‘substance to our company’s efforts,’ says Pennine CEO

 

The numbers are in—and they say Pennine Petroleum Corporation’s first Albanian drilling target could yield 26 million barrels of light crude.

As part of disclosure requirements, Pennine (TSX-V: PNN) recently announced the completion of a resource estimate for Albania’s Velca Block, which was prepared by Calgary-based Apex Energy Consultants Inc.

And in terms of prospective resources, the results are very encouraging:

  • A best-case recoverable resource of 26,400,000 barrels of oil;

  • A net risked prospective resource for Pennine of 11,200,000 barrels of oil, after payout and joint venture interests; and

  • Following a chance of discovery of 43%, a net risked prospective resource for Pennine of 4,874,000 barrels of oil.

“This is very exciting news for us, with a third party having given substance to our company’s efforts,” says Pennine CEO N. Desmond Smith.

Apex’s technical report was focused wholly on a seismically defined structure called the Ramica Anticline, at a depth of 2,600 meters (about 8,500 feet).

According to the report, the structure “appears to have two separate highs (Ramica and Amantia), which may be connected if a hydrocarbon column similar to the other fields on trend is encountered.” The report also cites existing seismic data provided by the Albanian National Agency for Natural Resources (AKBN), which shows an undrilled 7.75-square-kilometer closed structure at the top of the Ramica Anticline.

“The recently prepared engineering report provides Pennine with a low to high estimate of the potential of the Velca Block’s Ramica Anticline structure, by comparing this potential to established fields along the ‘String of Pearls faultline of the Velca Block,” notes Mr. Smith.

No drilling has been performed to date on the Ramica Anticline, says the technical report.

In February 2017, Pennine finalized terms of a production sharing agreement (PSA) for the Velca Block with Albania’s Ministry of Energy and Industry and Albpetrol Sh. A, the country’s state-owned energy firm, acquiring a 90% working interest. The PSA covers a six-year term, with potential conversion to a 25-year production lease upon discovery of one or more commercial oil or natural gas accumulations.