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  Quick Facts
- 100% W.I. & operatorship
- 2 billion barrels OOIP
- Gross reserve base of 147 Mbbls (P+P)
- Gross reserve value of US$720 million (P+P, after tax, 10%)
- 25+ year license agreement
- 10o to 20o API
- Long-life reserves with production & reserve growth potential
| Basin: | Patos Marinza |
| Target: | Driza, Marinza, and Gorani |
| Geological Age: | Ionian Mesozoic |
| Net Acreage: | 44,000 |
| Depth (ft): | Surface -- 6,000 |
| Gross thickness: | Multiple stacked sands reservoir of varying thickness |
History
The Patos Marinza oilfield is located in south central Albania, approximately 20 kilometres inland from the Adriatic coast. In terms of original oil in place, Patos Marinza is one of the largest onshore oilfields in continental Europe. The field, which encompasses approximately 44,000 acres, was originally discovered in 1928 and placed on production in the 1930s. Over 2,500 wells were drilled and production peaked at 13,000 bopd in the early 1960s.
Historically, Albpetrol was the sole operator of the Patos Marinza field. Anglo-Albanian Petroleum Ltd. (AAP), a joint venture of Albpetrol and Premier Oil Plc. was formed as a new operating company in 1994 and operated a portion of the field until 2004. AAP was dissolved in March 2004, and Albpetrol resumed operatorship.
In June 2004, we entered into a Petroleum Agreement with Albpetrol Sh.A., to evaluate and redevelop the Patos Marinza oilfield, under Albpetrol's existing license with the AKBN. On July 20, 2004, we took over the operation of 28 wells, a disposal well, and associated equipment and facilities.
The approval of our plan of development in March 2006 allows us to take over the remaining wells in the field on a defined basis and to produce and sell oil under the existing license for 25 years, with an option to renew for additional five year terms. In March 2008, we announced an Addendum to the plan of development that entails increased capital expenditures for vertical and horizontal infill drilling, as well as the initiation of waterflood development and thermal programs, to substantially increase production and reserves in 2008 and beyond. The successful execution of these plans is expected to achieve a target field production of 20,000 bopd by the end of 2010.
Petroleum Agreement
The Petroleum Agreement includes the rights to redevelop, produce and sell product from the existing oilfield utilizing the existing wells and infrastructure. The duration of our license is 25 years, and we have an option to extend the agreement for additional five-year terms, based on continued economic production.
The terms of the petroleum agreement include a 10% gross over-riding royalty. In addition, we pay a royalty to Albpetrol for the latter's share of pre-existing production from the wells taken over. This royalty is calculated per well using 70% of the average production for the preceding six months declining at 15% per annum.
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