May 2 (SeeNews) - Canada-based Pennine Petroleum Corporation announced on Tuesday the completion of the resource estimate report of the Velca Block, located in Southern Albania.
The report identifies a best case recoverable resource of 26,400,000 barrels of oil providing Pennine with net risked prospective resource of 11,200,000 barrels of oil after payout and joint venture interests, the company said in a statement published on its website.
After a chance of discovery of 43%, the Pennine net risked prospective resource is 4,874,000 barrels of oil, according to the report prepared by Canada-based Apex Energy Consultants.
Velca Block is located 10 km southeast of the port city of Vlore and covers an area of 620 sq km.
Pennine was selected the winner of a tender for onshore petroleum exploration, development and production in the Velca Block at the beginning of December 2015. In February 2016, it signed the main terms and conditions of a production sharing agreement for the Velca Block with licensee Albpetrol, according to which it acquired a 90% working interest.
The product sharing agreement envisages an exploration phase and a drilling phase. Drilling locations will be selected after the reinterpretation of existing seismic data. The drilling phase will be four years, in which the company is obliged to drill at least two wells to a depth of 2,500 meters or more.
Pennine Petroleum is headquartered in Calgary. It is currently active in Albania and the Canadian provinces of Alberta and Saskatchewan.