MEO Australia Limited has announced it has executed a Private Placement Agreement with London listed Leni Gas Cuba Limited to raise US$ 1.4 million with funds to be used to advance MEO's exploration programme on the company's newly advanced 2380 km2 onshore oil block, Block 9 in Cuba. under the placement agreement MEO will issue Leni Gas Cuba 140 716 573 shares at an issue price of AU$0.01 per share. The placement of shares to Leni Gas Cuba falls within MEO’s placement capacity and will make Leni Gas Cuba MEO’s single largest shareholder with a 15.8% interest in the company.
Cuba boasts exceptional oil and gas prospectivity. The Block 9 PSC area is in a proven hydrocarbon system with multiple discoveries within close proximity, including the multi-billion barrel Varadero oilfield. Block 9 contains the Motembo field, the first oilfield discovered in Cuba.
Technical review shows promising findings
An ongoing technical review of Block 9 has confirmed the significant prospectivity of the PSC area, with initial analysis identifying recovered oil from a number of previously drilled wells and a number of structural leads and prospects. MEO expects to complete its preliminary assessment of Block 9’s prospectivity and reprocessing of 2D seismic data by mid-year.
MEO is prequalified as an onshore and shallow water operator in Cuba and was awarded a 100% interest in the Block 9 PSC on 3rd September, 2015. Petro Australisa Limited holds a conditional 40% back-in option.
MEO’s established position in Cuba provides a strong early mover advantage ahead of ongoing strengthening of diplomatic relations between Cuba and the US.
Adapted from a press release by Louise Mulhall
Read the article online at: https://www.oilfieldtechnology.com/exploration/29022016/meo-secures-investor-for-cuban-exploration/