Sonangol to Acquire 70% Interest in Cuba Block 9 PSC from Melbana

Updated 1 year 9 months ago

Melbana Energy announced in December 2019 an agreement with Sonangol for the acquisition of a 70% interest in the onshore Cuba Block 9 production sharing contract (PSC). Sonangol is committed to drill two exploration wells and fund 85% of all costs associated with the Almeda and Zapato exploration wells with the first well expected to spud in 3Q 2020. Melbana will also received $5.0 million to cover its expenditures to date, and Sonangol will have the option to assume operatorship following the two-well drilling campaign. Melbana will contribute 15% of the drilling costs and maintain a 30% interest in the PSC. Block 9 is independently assessed to have 14.8 billion barrels of oil in place and prospective resources of 676 million barrels.