Paydirt for Jan. 29, 2018: Pennine focused on an eastern European O&G evolution

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PNN leadership has deep oil and gas experience in former Soviet bloc countries

For Pennine Petroleum, it’s a program of new-frontier exploration and production.

Because in the oil and gas industry, as in life, everything old is new again.

Since 2015, Pennine has focused squarely on oil and gas extraction and production in eastern and southeastern Europe—including the Republic of Albania, where PNN recently finalized its own Production Sharing Agreement (PSA) for the Velca Block.

Pennine’s leadership has experience running the gamut—geological and geophysical exploration, reservoir and extraction engineering, production, refining—in former Soviet-bloc countries.

“Our knowledge and experience of the energy industry in former Soviet bloc republics is now steering the Pennine ship,” says Pennine CEO N. Desmond Smith. “We’re talking decades of accrued understanding of the oil and gas regimes in those countries.

“And we’re also talking great potential for success, since economics and netbacks based on Brent crude pricing are superior to the Canadian alternative.”

Pennine’s eastern European experience is shared by:

  • Mr. Smith, who was involved in successful private and public ventures in both the Crimea and Azerbaijan; co-authored Azerbaijan’s first onshore exploration development PSA; created Crimea’s first publicly traded company on the London AIM exchange; and paved the way for domestic and foreign participation;
  • Chairman Richard Wadsworth, who was integral in developing Albania’s Patos-Marinza heavy oil fields; co-founded Bankers Petroleum Ltd. in 2004; and led Bankers, which would later reach production levels of 20,000 barrels a day, through 2008;
  • Board member Harry Sargeant IV, who has significant refining experience in both Romania and Albania; and whose global family business involves oil trading, oil refining, and marine shipping of oil and asphalt.

“We believe that our Velca Block PSA in Albania represents the first toehold for Pennine into eastern Europe,” says Mr. Smith. “We see great potential for responsible energy development, and shared prosperity, in this region—and we are equipped and motivated to seize that opportunity.”