PROPERTY ACQUISITION / Sands Petroleum AB: Three Exploration Blocks
Onshore Albania Awarded
TSE SYMBOL: SPB
JANUARY 20, 1998
VANCOUVER, BRITISH COLUMBIA--Sands Petroleum AB ("Sands") has,
through its 95.5 percent owned subsidiary International Petroleum
Corporation ("IPC"), been awarded three exploration blocks onshore
Albania. The agreements were signed with the Albanian government
in Tirana on Monday, January 19th.
Blocks 2, 3 and A were awarded to a consortium comprising IPC who
have a 20 percent interest, Occidental International Exploration
and Production Company ("Oxy") with 50 percent and Anschutz
Albania ("Anschutz") with a 30 percent interest. Oxy will act as
operator for the group.
The blocks were part of a bid round which was opened in 1996 and
included 8 blocks which had not previously been offered.
Preliminary award of Blocks 2, 3 and A to the group was made in
the 3rd quarter of 1996.
The blocks are located within and on trend with the proven
petroleum system in Albania where an estimated 1 billion barrels
of recoverable reserves have been discovered (please see attached
map). Most of the existing oilfields in Albania are located
within the boundaries of Blocks 2 and 3. The current producing
area of these fields have been excluded from the permits, however,
rights to deeper exploration objectives below these fields are
included. The primary exploration target will be sub-thrust
fractured carbonate reservoirs similar to those recently
discovered in the southern Appenines of Italy (including Monte
Alpi field with an estimated 1 to 2 billion barrels of recoverable
reserves). Several large leads have been identified on existing
seismic and landsat images.
Work commitments in the primary 3 year exploration phase are 650
kilometers of 2D seismic and the drilling of two exploration
wells. During 1998 an initial 150 km seismic program including
the extensive testing of specialized acquisition and processing
techniques will be undertaken to address the primary technical
risk which is the seismic imaging of sub-thrust structural
prospects. Acquisition of the remainder of the seismic program
and commencement of the drilling program are planned for 1999.
Sands Petroleum AB is quoted on the Stockholm Stock Exchange O-
list, and, as of today, on the Toronto Stock Exchange under the
symbol "SPB", and expects to be listed on NASDAQ, under the symbol
"SANPY", shortly.
Note: Location map available from the Company at the phone number
listed below. |
