On 8 October 2018 Melbana Energy Limited announced it signed a non-binding Letter of Intent (LOI) with Anhui Guangda Mining Investment Co Ltd (AGMI) for Block 9 after obtaining Cuban government approval. AGMI is a Chinese oilfield services and equipment provider. The deal, if approved, will see AGMI fund 3 exploration wells on the block before July 2020, fund all appraisal, development and production activities and costs on Block 9 as long as AGMI remains a participant in the block and replace the current cash backed bank guarantee provided by Melbana with an equivalent bank guarantee using its own financial arrangements. AGMI would also assume operatorship. In the event of a commercial success Melbana would recover its back costs from the authorized cost recovery pool as well as 12.5% of the profit oil.  Melbanaâs top three prospects on Block 9, Alameda, Piedra and Zapato, are to be drilled by July 2020, with at least two of these wells to be drilled in 2019. McDaniel & Associates Consultants, in a recent prospective resource assessment of Block 9, assigned a best estimate prospective resources of 270 MMbbl of oil in the five targeted objectives contained within Melbanaâs Alameda (3 objectives in well), Piedra and Zapato prospects.  The Alameda Prospect will test three separate objectives in the Upper and Lower Sheet formations. Independent consultants McDaniel & Associates tag the Best Recoverable Prospective Resources of the three objectives in the Alameda Prospect at 140 MMbbl of recoverable oil and assign the Alameda objective 72 MMbbl of recoverable oil and a 32% chance of success.  The Piedra Prospect will test a Lower Sheet fractured carbonate closure which features roughly 1,400m (4,595 ft) of vertical relief at its crest. McDaniel & Associates assign the Best Recoverable Prospective Resources of the Piedra Prospect at 34 MMbbl of recoverable oil and a 23% chance of success.  The Zapato Prospect will test a Lower Sheet fractured carbonate closure which features almost 1,000m (3,280 ft) of vertical relief. McDaniel & Associates assign the Best Recoverable Prospective Resources of the Zapato Prospect at 95 MMbbl of recoverable oil and a 23% chance of success.
Cuba, Block 9