Approvals enable Melbana to move forward in Cuba

|

Published 03-OCT-2019 12:55 P.M.

|

2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

Melbana Energy Limited (ASX:MAY) has been a bit quiet of late, however today updated the market on its activities.

In good news for the company, it was today informed by CUPET, the national oil company of Cuba, that the Cuban oil company has received all necessary approvals to confirm amendments to the Block 9 Production Sharing Contract (PSC) requested by Melbana.

The amendments are expected to be formally documented in October and will assist Melbana in its negotiations with prospective partners for its proposed 2020 drilling programme in Block 9.

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 relinquish 24.6 km2 (about 1% of the total area). This does reduce the total prospective resource (best estimate) for Block 9 from 718 million barrels of oil to 676 million barrels of oil (see cautionary statement below), however that is still a solid number.

Meanwhile at Beehive

The purpose of today’s news was to advise shareholders that the company has received a request for a one-month options extension from TOTAL S.A. and Santos Limited.

Total and Santos will have a further 30 days to exercise the options they each hold to acquire a 40% interest in WA-488-P in return for agreeing to jointly fund the drilling of Melbana’s Beehive-1 exploration well.

TOTAL and Santos have completed their technical assessment of the Beehive prospect, but require the extra time to finalise their commercial analysis and seek internal approvals.

This extension should not impact the ability of Total and Santos to drill the Beehive-1 exploration well before the end of next year, should Santos and Total elect to exercise their options.

Total and Santos have until 4 November to alert Melbana to their intentions, with the options to expire on 4 December.

Beehive has been assessed by Independent Expert McDaniel & Associates to contain a best estimate prospective resource of 388 million barrels of oil equivalent.

However it should be noted that 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. Gas to Oil Factor: based on Mcf to BOE energy equivalence conversion of 6 to 1.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.

 

Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free

X