Sky Petroleum has been granted exclusive rights under the PSC to the three exploration blocks totaling approximately 5,000sqkm. In addition to the exploration rights, the company will also have access to more than 1,200km of 2-D seismic data.
Karim Jobanputra, president and CEO of Sky Petroleum, said: “Albania will prove to be a major player in Western Europe, with estimated reserves north of six billion barrels, and we look forward to participating in its development.”
The PSC has a seven-year term with three exploration periods. Commitments on the blocks during the first exploration period of two years include geology and geophysics (G&G), reprocessing of existing seismic, and additional seismic acquisition.
Two wells and additional G&G will be undertaken in the subsequent exploration periods. Upon commercial discovery of gas, the agreement allows for development and production periods of 25 years plus extensions at the company’s option.
Block Four is located in southeast Albania, bordering on Greece. The exploration block covers an area of approximately 2,264sqkm. The area has four identified leads and prospects on the block with a total estimated reserve potential of 350mmboe.
Block Five is located in southwest Albania next to the Adriatic Sea and covers an area of approximately 2,076sqkm. The block has a total of five identified prospects or leads with a total estimated reserve potential of 375mmboe.
Block Dumre is located immediately north of the Kucova oil field and covers an area of approximately 623sqkm. Based on analogous discoveries, it is estimated that the Dumre prospect contains approximately 500 to 700mmboe OOIP.
