Shpirag, Velca and the String of Pearls (Part 3 of 3)
This may be a pearl in more ways than one.
Pennine Petroleum’s Ramica structure target—in the Velca Block concession that Pennine is exploring along with Albania’s national oil company, Albpetrol Sh.A—is along the so-called String of Pearls fault line, from which much of Albania’s oil production is generated.
Anticipated netbacks and Brent pricing are also expected to create prosperity—with no Western Canadian select price discount in sight.
“On a production basis, we know that Bankers Petroleum Ltd. (which sold its Patos-Marinza producing assets to private Geo-Jade affiliates in mid-2016) had operating, sales, transportation and royalty costs of just US$20.93 per barrel, as publicly reported in mid-2016 prior to their sale to Geo-Jade,” notes Pennine CEO N. Desmond Smith.
“Given that Brent crude is now trading at US$62 a barrel, and has traded at as much as US$70 in recent weeks, our potential netbacks are in the range of about US$41 a barrel—or more,” adds Mr. Smith.
In late November, Pennine finalized a Production Sharing Agreement (PSA) for Velca Block with Albpetrol Sh.A, Albania’s national oil company. Pennine’s geophysical team is currently poring over seismic data to determine a drill location for the Ramica structure target.
The Ramica structure target, according to Pennine Petroleum’s NI 51-101 compliant independent prospective resource estimate, has a best-case scenario of 26.5 million barrels of recoverable hydrocarbons.
The structure is similar to the Waterton, Pincher Creek and Jumping Pound reservoirs in the foothills of Alberta. Reservoir depths are 2,200m to 3,400m, with the current Ramica structure target at about 3,200m—and gross pay estimated at anywhere between 450m and 750m.
Pennine’s geophysical team is currently poring over seismic data to determine a drill location for the Ramica structure target.
The Patos-Marinza field, Shell’s Shpirag appraisal wells, and the producing Gorisht, Cakran and Amonica fields are all along the northwest-southeast String of Pearls fault lines in Albania.