Petro Australis to acquire 40% interest in petroleum asset onshore Cuba
Petro Australis is set to acquire a 40% participating interest in Cuba Block 9 production sharing contract (Block 9 PSC) from Melbana Energy.
The development comes after the company notified Melbana that it will exercise its back-in right related to the project.
Once approval from Cuban regulatory authorities is granted, Melbana will continue to be the operator of Block 9 PSC, with a 60% interest.
Melbana Energy managing director and CEO Peter Stickland said: “The notice of Petro Australis’ intention to exercise its back-in right is a strong validation of our belief in the enormous prospectivity of Block 9 PSC in Cuba and will assist with our plans to rapidly unlock the Block 9 petroleum potential.
“With Petro Australis exercising its back-in right, Melbana’s funding obligations will be significantly reduced whilst still retaining a very large exposure to this world-class oil exploration opportunity.”
Petro Australis needs to contribute 40% of certain back costs, as well as 40% of future costs in connection with Block 9 PSC.
Melbana intends to drill up to two wells in the project commencing mid next year.
In 2012, an agreement was signed between the companies wherein Petro Australis was granted an option to acquire up to 40% interest in Block 9 PSC.