Canadian player Pennine Petroleum has signed a production sharing agreement with Albanian state-owned Albpetrol covering the onshore Velca block in the southern part of the European Mediterranean country.
Pennine and Albpetrol are now planning the exploration and development of the 620-square-kilometre block, which will be operated by the Calgary-based junior.
The finalised PSA contains a license agreement for a six-year exploratory lease —convertible to a 25-year production lease, upon discovery of oil and/or natural gas accumulations.
"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" chief executive Desmond Smith said.
"Albania
