Oil and Gas Properties

9 Months Ended

Sep. 30, 2020

Extractive Industries [Abstract]

Oil and Gas Properties

4. Oil and Gas Properties

	Unproven properties			Proven properties
	Bulgaria			Turkey			Total
December 31, 2018	$	3,117,229		$	3,533,703		$	6,650,932
Expenditures		–			37,449			37,449
Asset retirement revaluation		–			(810,667	)		(810,667	)
Depletion		–			(302,094	)		(302,094	)
Foreign currency translation change		(1,325	)		–			(1,325	)
December 31, 2019		3,115,904			2,458,391			5,574,295
Expenditures		–			4,821			4,821
Depletion		–			(201,875	)		(201,875	)
Foreign currency translation change		2,836			–			2,836
September 30, 2020	$	3,118,740		$	2,261,337		$	5,380,077

Bulgaria

The Company holds a 98,205-acre oil and gas exploration claim in the Dobrudja Basin located in northeast Bulgaria. The Company intends to conduct exploration for natural gas and test production activities over a five-year period in accordance with or exceeding its minimum work program obligation. The Company’s commitment is to perform geological and geophysical exploration activities in the first 3 years of the initial term (the “Exploration and Geophysical Work Stage”), followed by drilling activities in years 4 and 5 of the initial term (the “Data Evaluation and Drilling Stage”). The Company is required to drill 10,000 meters (approximately 32,800 feet) of new wellbore (which may be vertical, horizontal or diagonal) and conduct other exploration activities during the initial term. The Company intends to commence its work program efforts once it receives all regular regulatory approvals of its work programs.

Turkey

Cendere oil field

The primary asset of the PPE Turkey Companies is the Cendere onshore oil field, which is a profitable oil field located in South East Turkey having a total of 25 wells. The Cendere Field was first discovered in 1988. Oil production commenced during 1990. The operator of the Cendere Field is TPAO. The Company’s interest is 19.6% for all wells except for wells C-13, C-15 and C-16, for which its interest is 9.8%. The produced oil has a gravity of 27.5o API.

The Cendere Field is a long-term low decline oil reserve. As at September 30, 2020, net production to PPE Turkey was 147 Boe/d. For the 2020 year-to-date, net production to the PPE Turkey averaged 183 Boe/d. At September 30, 2020, the gross oil production rate for the producing wells in Cendere was 555,43 bbls/day; the average daily 2020 gross production rate for the field was 594 bbls/day. At the end of October 2020, oil is currently sold at a price of approximately US$40,62 per barrel for a netback per barrel of approximately US$13 / bbl. At September 30, 2020, the Cendere field was producing 109 barrels of oil per day net to the PPE Turkey; and averaged 116 barrels per day during 2020 net to the PPE Turkey.

The South Akcakoca Sub-Basin (“SASB”)

The Company owns offshore production licenses called the South Akcakoca Sub-Basin (“SASB”). The Company now owns a 49% working interest in SASB. SASB has four producing fields, each with a production platform plus subsea pipelines that connect the fields to an onshore gas plant. The four SASB fields are located off the north coast of Turkey towards the western end of the Black Sea in water depths ranging from 60 to100 meters. Gas is produced from Eocene age sandstone reservoirs at subsea depths ranging from 1,100 to1,800 meters.

Bakuk gas field

The Company also owns a 50% operated interest in the Bakuk gas field located near the Syrian border. The Bakuk field is shut-in with no plans to revive production in the near term.