Melbana engages Cuban firm for well surveys

Australian oil company Melbana Energy has engaged a Cuban engineering firm to survey well sites. These wells would come in addition to block 9, where it is preparing to drill at least two wells in mid-2018.

The block (pictured) has over 12.5Bb of oil-in-place and prospective resources of 637Mb, conveniently located close to existing infrastructure. Nineteen individual leads have been identified in conventional plays at depths of between 2-4,000m. Higher quality light crude oil potential also exists, demonstrated by significant oil recoveries that may even add more potential, the company said.

In September, Melbana announced it would use US$5.2mn in fresh capital to bankroll the exploration, having raised US$3.42mn from an entitlement issue, on top of US$1.8mn from a placement. Moreover, in late October Petro Australis failed to achieve pre-qualification to enable a timely application to Cuban authorities for the acquisition of a 40% interest in a block 9 production-sharing contract, meaning that Melbana retained its 100% stake.

Under the 25-year contract awarded in 2015, including an exploration period to 2023, the minimum work program of the current sub-period to November 2019 is to drill one well, but the company is aiming to drill two wells starting mid-2018.

Equipment and contractor procurement and permitting are underway, in addition to the farm-out process, with a number of potential companies visiting the data room, Melbana said.