Sky Petroleum delivers $1.5 m bank guarantee

TIRANA, Aug. 15 – US-based oil and gas company Sky Petroleum has announced that it has recently delivered USD 1.5 million bank guarantee to the National Agency of Natural Resources of Albania. The bank guarantee grants Sky Petroleum exclusive rights to three exploration blocks (Block Four, Block Five and Block Dumre) in concession area.
“We are pleased to deliver the bank guarantee to AKBN,” stated Karim Jobanputra, Sky Petroleum’s chief executive officer. “We look forward to further operational developments to the exploration blocks.”
The Production Sharing Contract with AKBN has a seven-year term with three 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; Block Five is located in southwest Albania next to the Adriatic Sea; and Block Dumre is located immediately north of the Kucova oil field. Based on analogous discoveries, it is believed that the prospects contain significant hydrocarbons.
Albania is a proven hydrocarbon producing region with earliest known bitumen production dating back to the Roman Empire. Modern exploration began in the early 1900s. The Patos – Marinza and Kucova heavy oilfields are among the largest oilfields in Europe. To date there have been ten significant field discoveries that have produced more than 150 million barrels.