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Albania is the strategic focus for Bankers' plans for the future, providing a solid asset base of production that will translate into growth in production and reserves. We operate in the Patos Marinza field, located east of the city of Fier in south central Albania. This 44,000-acre heavy oil field is the largest onshore oil field in continental Europe with 2 billion barrels of original oil in place.
We hold a 25-year license under an existing agreement with state-controlled Albpetrol Sh.A and the National Petroleum Agency of Albania, and we have an option to renew for additional five-year terms. Bankers has a strong management team and a focused strategy for growth both from primary recovery and accessing other opportunities to increase field recovery. Since we took over operations in June 2004, production has increased from 600 barrels of oil per day (bopd) to approximately 5,800 bopd in June 2008.
In early 2008, the Company created a three-year plan for its Albanian assets 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.
Bankers also holds full rights to the Kucova oilfield in Albania, which has in excess of 490 million barrels of original-oil-in-place. Bankers will be focused on creating a plan of development for this field, incorporating many of the extraction techniques utilized in the Patos Marinza field.
In addition, Bankers' strategy involves identifying and acquiring other potential heavy oil opportunities in Albania to increase overall value.
Our Albanian assets have provided value to our shareholders and to the development of Albania, and will continue to do so in the future. Since June 2004, we have invested over US$140 million in the development of the field, helping to improve local environmental, health and safety standards, as well as benefiting Albania's economy.
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