Foot placed on Cuba oil accelerator
Melbana Energy Ltd. said if potential pans out, onshore Cuba could be
definitive for the company.
By Daniel J. Graeber | March 22, 2017 at 6:26 AM
March 22 (UPI) -- A basin in Cuba that has a reserve potential of 647
million barrels is scheduled for an accelerated exploration program, an
Australian energy company said.
Melbana Energy Ltd. is targeting the Block 9 prospect onshore along the
Varadero oil field in Cuba. The company described its target as one of
the "most exciting" prospects in the world.
Peter Stickland, the company's CEO, said in a statement that some of the
areas in its Cuban portfolio could be definitive for Melbana if their
potential is realized fully.
"We are looking forward to commencing the detailed planning phase to
support our ambition of a drilling campaign with a target of two wells
in the first half of 2018," he said.
Melbana estimated last year that Block 9 holds 637 million barrels of
prospective recoverable reserves and 19 drilling prospects there were
described by the company as high impact and low risk. Its highest ranked
drilling opportunity is the Alameda-1 well, with an estimated 400
million barrels of recoverable oil on the high side of Melbana's estimates.
Melbana is one of the few Western oil companies, and the only one listed
on the Australian exchange, with a footprint in Cuba.
The national oil company of Cuba, CUPET, extended its contract last year
for early exploration efforts in Block 9 by eight months to November
2017. Melbana estimates Cuban programs have a competitive operating cost
of around $7 per barrel of oil.
In its second-half report, the company said adequacy of funding was its
main focus. More funding could come from capital injections, share
placements or farm-ins to some of its prospects.
Source: Foot placed on Cuba oil accelerator - UPI.com -