Melbana Energy Limited provides the following update on its activities in Cuba.

Melbana has received all remaining key regulatory approvals for the Alameda-1 exploration well – the first of the two well programme it has planned for Block 9.

The Office of National Mineral Resources will issue the Drilling Operations Permit for the Alameda-1 exploration well once Melbana notifies it of the drilling rig to be contracted and the drilling timing window. The Drilling Operations Permit is the final administrative permit required for drilling to proceed.

Drilling rig commercial negotiations are proceeding with the contractor selected from the international tender Melbana ran earlier in the year. A drilling rig has been nominated by the contractor with two available starting dates in December 2018 or April 2019. A decision on starting dates and when to commence drilling pad civil work is dependent on selection of a preferred partner and completion of a farmin agreement.

With respect to the Santa Cruz incremental oil recovery project, Melbana has completed its initial technical assessment of the opportunity with sufficient encouragement to support Melbana proceeding to the next stage of negotiating a long term binding agreement with Cuba’s national oil company Cubapetroleo.

Melbana’s CEO Robert Zammit commented:
“I am pleased that our Havana and Melbourne based drilling team has reached this important regulatory milestone for the drilling of the Alameda-1 exploration well, which is currently our highest ranked exploration target in Block 9. Civil works design to build the Alameda-1 drilling rig pad has been optimized and a decision on when to commence construction will be made once a partner has been selected. Our objective is to have a preliminary farmout agreement with our preferred partner this quarter. Regulatory and environmental approvals for the drilling of the Zapato-1 exploration well have also been advanced.

We are also making good progress on the Santa Cruz opportunity, tabling in recent meetings in Cuba our proposed operational footprint and work program, consistent with our target of completing a final long term agreement in the fourth quarter of this year.”

Overview of Block 9 PSC, Onshore Cuba

Block 9 covers 2,380km² onshore of the north coast of Cuba. It is in a proven hydrocarbon system with multiple producing fields within close proximity, including the Majaguillar and San Anton fields immediately adjacent to it and the multi-billion barrel Varadero oil field further west. Block 9 contains the Motembo field, the first oil field discovered in Cuba. Melbana is prequalified as an onshore and shallow water operator in Cuba and was awarded Block 9 on 3 September, 2015. Melbana’s established position in Cuba provides it with a strong early mover advantage.