by Daniel J. Graeber
Washington (UPI) Sep 11, 2017
An effort to raise up to $4.8 million to help fund drilling operations at a reservoir in Cuba fell well short of its goal, Melbana Energy Ltd. said.
Melbana is one of the few Western companies, and the only one listed on Australia's stock exchange, with an established footprint in Cuba. It initiated a push last month to raise capital for its preliminary efforts and said that through the placement of shares alone, it received $1.8 million that it would use to fund drilling preparations in Cuba and cover general corporate costs.
On Monday, the company said an entitlement offer to raise $4.8 million fell short of the goal, raising $1.5 million. All told, the company said it was expecting to raise up to $6 million through placement and entitlement.
"On behalf of the board of directors, I would like to thank shareholders for their continued support in the company, as we look to progress Cuba Block 9 pre-drilling activities," Managing Director and CEO Peter Stickland said in a statement.
Melbana started the preliminary work necessary to get the proposed Alameda-1 well location ready for future operations. Up to two wells in Block 9 are anticipated for next year and the company said its Cuban portfolio contains an estimated 637 million barrels of prospective recoverable reserves.
A drilling campaign set for next year could cost the company about $30 million at the high end. To the period ending June 30, the company had about $2.7 million in cash on hand.
Melbana's cost obligations moved lower last month, however, when Petro Australis Ltd. exercised a right to move into its Cuban acreage by taking on a 40 percent participating interest in the Block 9 production sharing contract. Through the arrangement, Petrol Australis assumed 40 percent of the costs associated with future operations.
Hurricane Irma battered the north of Cuba as a Category 3 storm on Saturday before it began to turn north for its run up Florida's western coast. Melbana had no public comment on whether its license areas on the northern shores of Cuba were damaged by the storm.
Moscow (AFP) Sept 8, 2017
Swiss commodities trader Glencore said Friday it is selling a major part of a stake it only recently acquired in Russian oil giant Rosneft to Chinese conglomerate CEFC. Glencore, which had teamed up with the Qatar's sovereign fund at the end of last year to acquire a 19.5-percent stake in Rosneft, said in a statement that it had now agreed to sell a holding of 14.16 percent on to CEFC. ... read more
All About Oil and Gas News at OilGasDaily.com
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|