Albania and Canada focused Pennine Petroleum Corporation has signed a Production Sharing Agreement (PSA) with Albpetrol Sh.A for the exploration and development of the Velca Block in Albania.

The finalized PSA contains a license agreement signed by Pennine, Albania’s Ministry of Energy and Industry, and Albpetrol, the country’s state-owned energy firm, for a six year exploratory lease -convertible to a 25-year production lease upon discovery of oil and/or natural gas accumulations.

Under the exploration phase of the PSA, Pennine and Albpetrol will conduct an examination of all currently existing geological, geophysical and well data on the Velca Block, and conduct any processing or re-processing of data to select drilling targets.

The Drilling Phase will consist of a commitment to drill a minimum of two wells, to a minimum depth of 8,202 feet.

“This is a very exciting day for Pennine. Albania has a long history of oil and gas development dating back nearly a century, and Pennine is excited to bring its expertise to this region,” Pennine Chief Executive Officer N. Desmond Smith said.

“Albania has mature energy infrastructure, established legislation and regulations, and a recent history of significant foreign investment for the development of its energy sector,” he added.

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