Wednesday, April 26, 2017

Fast-track drilling for Cuba envisioned

Fast-track drilling for Cuba envisioned
Australian energy company Melbana said conditions ripe for action in oil
prospects in Cuba.
By Daniel J. Graeber | April 26, 2017 at 8:05 AM

April 26 (UPI) -- The necessary components for an accelerated drilling
program for oil prospects in Cuba may already be in place, Australian
energy company Melbana said.

Melbana Energy Ltd. estimated last year that Block 9 in Cuba 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. CEO Peter
Stickland said the company had about $2.7 million in cash on hand as of
March 31 that it would use in part to develop its drilling program in Cuba.

In its latest statement, the company said it was focused on accelerating
the program in Cuba, which outlines two new wells during the first half
of 2018. Melbana said it "concluded that the appropriate equipment,
experienced personnel and support services necessary to safely and
effectively undertake a drilling program can be expected to be available
in Cuba."

The company estimated its drilling campaign for 2018 would cost about
$30 million at the high end and it was now in the process of a detailed
contractor evaluation.

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.

In its second-half 2016 report, Melbana 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: Fast-track drilling for Cuba envisioned - -

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