Melbana Energy Cuba Updates

Melbana Energy Ltd has just announced its Cuba updates on Block 9 and Santa Cruz fields. The following is from the Company’s most recent press release:

Negotiations continue with an international oil company with Cuban experience for the Block 9 project. An application has been made for a one year extension on current drilling commitments and to secure funding for a minimum two well drilling program in 2020 to test the world class oil exploration potential of Block 9.

Melbana has applied to Union Cuba-Petróleo (CUPET) for a minimum 12 month extension to the second sub-period of the Block 9 production sharing contract (PSC) which currently expires on November 3, 2019.

The second sub-period has a minimum work program including the completion of a gravity study and the drilling of one exploration well. Melbana has completed the gravity study component of the work program.

With respect to the Block 9 guarantee obligation, CUPET had previously provided a waiver of the obligation until April 30, 2019. An application has been made for a further extension of the waiver to the end of the applied extension.

The commercial negotiations for the Incremental Oil Recovery (IOR) PSC contract are making progress. The original agreement was signed by Melbana and CUPET in late 2018 and has since identified some issues which need to be ironed out.

Oil production began at the Santa Cruz field in 2006 and original estimates expect to have up to 100 million barrels of recoverable oil. Melbana completed the initial assessment of Santa Cruz, identifiying a number of promising opportunities to enhance production.