Melbana receives approvals from CUPET to move ahead in Cuba

By Jonathan Jackson. Published at Oct 22, 2019, in Energy

It is all systems go for Melbana Energy Limited (ASX:MAY) at its Block 9 Production Sharing Contract (Block 9 PSC) in Cuba.

Requested amendments to its Block 9 PSC with CUPET, the national oil company of Cuba, have now received the necessary approvals.

Melbana first made the requests on 3 October 2019 and these amendments have now been formally documented between Melbana and CUPET.

Read: Approvals enable Melbana to move forward in Cuba

As previously reported, 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.

CUPET has also informed Melbana that it is in good standing with respect to all of its Block 9 PSC obligations.

Although, it has been quiet of late with operational changes taking centre-stage, the current flow of good news company has enabled the company to once again resume discussions with relevant parties including drilling and other service providers. Melbana will gauge the interest of those who have previously tendered, as it refreshes costings and availabilities.

Melbana is also currently in deep discussions with prospective farmin partners, and has also commenced the process of seeking to extend the various drilling, environmental and other permits and access agreements it currently holds to allow for a two well drilling program commencing 2H 2020.

Melbana has already identified at least one new rig in country, complete with crew and related services, that may be suitable and available in country about the time Melbana may require it.

The proposed two well drilling program would test four separate targets totalling 236 million barrels (best estimate) of prospective resource, the best of which is estimated to have a 32% chance of success1.

The prospective resources at each objective have been prepared using the probabilistic method and the summation of the total prospective resource has been prepared using the arithmetic method.

  1. 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, and Melbana confirms there has been no new information since that date and all technical parameters and assumptions have not changed since that date.

S3 Consortium Pty Ltd (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 only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Thanks for subscribing!