Oil Could be the Big Game Changer for Cuba

The CEO of Australian oil company Melbana Energy Ltd (MEOAF) provided an update to its onshore drilling program on its Block 9 Production Sharing Contract (“Block 9 PSC”) in Cuba.

Melbana Energy is the only oil exploration company in Cuba that is listed on the Australian Stock Exchange.  It is one of the few Western oil companies with active oil and gas exploration in the country.  The company has forecasted some 637 million barrels of prospective recoverable reserves on the Block 9 onshore acreage.  The update also stated the Alameda and Zapato sites show promise and will be drilled in early 2018.

“Melbana is now focused on the detailed planning phase to support our ambition of a two-well drilling campaign commencing in approximately 12 months,” CEO Peter Stickland said in the update. “The two highest priority targets have a combined exploration potential of over 200 million barrels of recoverable oil meaning success in just one of the wells would be a company maker for Melbana.”

Last year Melbana received an extension of its exploration period within an area that covers 2,380km2, east of Havana.  Most of the area is onshore, but Melbana has been awarded both onshore and shallow water operating rights. Block 9 PSC is close to oil fields with operational oil wells including Motembo, Majaguillar, and San Antonio oil fields.  Interesting to note is that oil was first discovered in the Motembo Field.  The area is a proven oil field which could potentially hold billions of barrels of oil.

The extension of its exploration period is valid for 18 months commencing from September 2015.  The entire exploration period runs until March 2024.

Melbana has recently hired a Cuban engineering firm for well design and management of the regulatory requirements,  environmental licenses and civil approvals.

Stickland said: “Having demonstrated that Block 9 PSC represents some of the world’s most exciting exploration acreage, Melbana is now focused on the detailed planning phase to support our ambition of a two well drilling campaign commencing in approximately 12 months.  The two highest priority targets have a combined explorational potential of over 200 million barrels of recoverable oil meaning success in just one of the wells would be a company maker for Melbana.”

All Cuba Business Report readers can get a 10% discount on the upcoming Cuba Energy, Oil and Gas Conference in Havana this September.  Register here and quote the code: CBR10