According to official reports in late-May 2020, Melbana Energy has signed an agreement to farm-out 70% of its stake on the company's 100%-held onshore Block 9 to Angolan state company, Sonangol, in exchange for the latter's commitment to fund 85% of the drilling costs on planned Alameda 1 and Zapato 1 wells along with payment of USD five million, pending on formal Cuban government approval. The drilling program will test four separate targets in the Upper and Lower Sheet formations with up to 236 MMbo of prospective resources. One well is expected to be spudded in Q4 2020 by the end of the current exploration period in early-November 2020 before the second well follows in Q1 2021, although details have not been released regarding which prospect will be the first one drilled. Sonangol will have the option to assume operatorship of Block 9 at the conclusion of the drilling program.  Block 9 Production Sharing Contract (PSC) is situated on the North Cuban Province Basin covering 2,344 sq km of land. The area includes the first oil field to have been discovered in Cuba, Motembo field, from 1881. Although discovered in 1881, the period of maximum development of the field occurred between 1930 and 1945.  Melbana and Sonangol previously signed a Heads of Agreement (HOA) prior to the farm-out back in December 2019, following an extension to the current exploration period until November 2020 that was received in October 2019 with commitment to drill one exploration well.  Background Information  Melbana had been searching for a partner following the Cuban governmentâs refusal to grant Petro Australis the right to exercise a 40% back-in option on the block in November 2017.
Cuba (North Cuban Province) Block 9 op. by SONANGOL (70%), MELBANA (30%) Melbana Energy Ltd agreed to farm-out 70% interest to Sonangol, Block 9, North Cuban Province Basin