Melbana Energy optimistic about Cuba opportunities

Australian oil company Melbana Energy said it sees "substantial potential" in Cuba as it evaluates seismic data, adding that it will issue this quarter an assessment of exploration potential.

Melbana, in a 4Q16 report, said it also advanced in October-December plans for an accelerated initial drilling program of up to two exploration wells in onshore block 9. The firm aims to finalize well proposals by the end of 1Q17.

Also during Q4, Cuban state oil firm Cupet awarded Melbana an eight-month exploration extension for the block.

Melbana had announced in October it was planning to drill a well at block 9 in the first quarter of 2018.

"As an early mover into Cuba, Melbana is now one of the few western companies and the only ASX-listed company with a footprint in the expanding Cuban hydrocarbon sector," Melbana said.

"The geology of the block has analogies to petroleum systems in which Melbana's technical personnel have significant experience, and Melbana sees substantial potential in Cuba overall and Block 9 in particular."

Melbourne-based Melbana changed its name in November from MEO.