Melbana Energy Limited MAY:ASX released an update today on its activities in Cuba. The oil company in Cuba has received approvals on Block 9.
Unión Cuba Petrolia (CUPET), the national oil company of Cuba, has received all necessary approvals to confirm amendments to the Block 9 Production Sharing Contract (PSC) requested by Melbana.
The amendments will be formally documented in October and will assist Melbana in its negotiations with prospective partners for its proposed drilling program in Block 9 for 2020.
The approved amendments to the Block 9 PSC cover extension of the current exploration sub-period to 1 November 2020 with no change to the commitment to drill one exploration well during this sub-period and the extension of the exploration period by one year.
Melbana will also voluntarily relinquish 24.6 km2 (about 1% of the total area). This reduces the total prospective resource for Block 9 from 718 million barrels of oil to 676 million barrels of oil , however that is still a solid number (see cautionary statement below).
Highlights of the Melbana Press Release:
• Approvals received for requested amendments to the Block 9 Production Sharing Contract (PSC)
• Principal amendments are a one year extension of the current exploration sub-period to 1 November 2020 and a one year extension to the full exploration period
• The work commitment for the current exploration sub-period remains the drilling of one exploration well
• CUPET confirms that all of Melbana’s other obligations under the Block 9 PSC are either waived for the current sub-period or are in full compliance
Prospective Resources Cautionary Statement:
The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Future exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. All quoted volumes taken from Independent Expert McDaniel & Associates Competent Persons Report 30 June 2018 (as amended by Melbana for areas voluntarily relinquished).
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