Pebercan announced that Cuban authorities, through Cubapetroleo S.A. ("Cupet"), have notified its subsidiary Peberco Limited that Cupet wishes to prematurely terminate the production sharing contract, entered into in 1993 and scheduled to expire in 2018.
In light of this early termination of the production sharing contract and settlement of debts owed to Peberco for the sale of crude oil and in
As well, and given the relationship between Peberco et Sherritt International (Cuba) Oil and Gas, the latter will receive its portion of the
The agreement provides that the transfer and acknowledgement of the lump sum payment will be completed by mid February 2009. The company will recognize the depreciation of its assets in its first quarter financials of 2009.
Pebercan will examine future opportunities upon receiving the lump sum.
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