Melbana Energy Limited has entered into a formal agreement with a subsidiary of Sherritt International Corporation to provide it with drilling and related services pertaining to its upcoming two well drilling program in its Block 9 contract area in Cuba, expected to commence in mid-2021.
Under the new agreement, Sherritt will provide a drilling rig which is already situated in-country and manage the logistics of Melbana’s purchased inventory and equipment arriving from abroad throughout the drilling program. Sherritt will also provide drilling crews to operate under the supervision of Melbana’s Drilling Manager and Project Management team.
Sherritt was Melbana’s preferred choice of drilling contractor primarily due to its experience in the country and its permanently situated personnel and drilling equipment there.
Melbana Energy’s Executive Chairman, Andrew Purcell, said the company is delighted to have reached an agreement with a seasoned operator like Sherritt, particularly given its decades of experience drilling hundreds of oil and gas wells in Cuba.
“The agreement also gives us access to Sherritt’s various administrative capabilities and other support services that go well beyond what would normally be expected from a drilling contractor. It gives us great comfort that we will be the beneficiary of their local knowledge, personnel and relationships and we look forward to a more efficient and quicker prosecution of this drilling program with them supporting us than may have otherwise been the case,” Mr Purcell said.
The Block 9 Production Sharing Contract (Block 9) covers 2,344 square kilometres onshore on the north coast of Cuba, 140 kilometres east of Havana in a proven hydrocarbon system and along trend with the multi-billion barrel Varadero oil field.
Melbana was awarded a 100 per cent participating interest in the Block 9 PSC on 3 September 2015.
Independent Expert McDaniel & Associates Consultants Competent Persons Report (30 June 2018) estimated Block 9 to contain approximately 15.7 billion barrels of Oil in Place (best estimate) with a prospective resource of 676 million barrels (best estimate).
