Cut best case in half and we have over CAD$3 share priceHalf of best case reserves scenario with $40 netback would equate to a PNN share price of well over $2. If initial drill results are positive we'll see this shoot to $0.30 as a start. It's game time folks and hard to believe we are still sitting at $0.05 !
“On a production basis, we know that Bankers Petroleum Ltd. (which sold its Patos-Marinza producing assets to private Geo-Jade affiliates in mid-2016) had operating, sales, transportation and royalty costs of just US$20.93 per barrel, as publicly reported in mid-2016 prior to their sale to Geo-Jade,” notes Pennine CEO N. Desmond Smith.
“Given that Brent crude is now trading at US$62 a barrel, and has traded at as much as US$70 in recent weeks, our potential netbacks are in the range of about US$41 a barrel—or more,” adds Mr. Smith.
In late November, Pennine finalized a Production Sharing Agreement (PSA) for Velca Block with Albpetrol Sh.A, Albania’s national oil company. Pennine’s geophysical team is currently poring over seismic data to determine a drill location for the Ramica structure target.
The Ramica structure target, according to Pennine Petroleum’s NI 51-101 compliant independent prospective resource estimate, has a best-case scenario of 26.5 million barrels of recoverable hydrocarbons.