Paydirt for Oct. 1, 2018: Pennine digitizes data for future Velca Block drilling activities

2018.10.01 Albania buildings.jpg

Historical geophysical information had been stored on tape-to-tape reels in Albania since 1980

Pennine Petroleum Corporation has extracted valuable historical data for the Velca Block, which will help in determining its initial drill target in Albania.

With help from private and public officials in the Balkan republic, Pennine officials have digitized a wealth of geophysical and geological information on the Velca Block, which lies along the so-called String of Pearls—a series of producing fields along a northwest-southeast fault line running down the spine of Albania.

“We are elated to have the data in hand. The original information was recorded in 1980, and was stored on something like 1.2 kilometres’ worth of tape-to-tape reels,” says Pennine’s chief executive officer N. Desmond Smith.

“Digitizing this data was a tricky bit of business, given the age of the magnetic tape we were dealing with,” adds Mr. Smith. “We now have more than 250 kilometres of seismic data that will help guide us in our quest to create prosperity in Albania.”

Pennine has appointed a well-established firm to integrate this reprocessed data with earlier renditions and fine-tune the interpretation of this seismic data with the well log data, also digitized, to establish a drilling target.

Pennine has a Production Sharing Agreement (PSA) for the 306-square-kilometer Velca Block with Albpetrol Sh.A, Albania’s national oil company.

According to Kastriot Bejtaj, renowned Albanian oil executive and current chairman of the Velca Block PSA advisory committee, “The Velca Block is considered by Albpetrol experts as a low-geological-risk asset at the optimal depth.”

As reported last week, Pennine’s “farm-in” talks with an intermediate-sized European oil conglomerate relating to the Velca Block have been ongoing since early July.

Meetings have been held in Albania and the potential partner’s home country, with due-diligence work currently taking place in several areas that include geological and geophysical data, taxation, accounting and legal.