MEO Australia Raises Funds for Cuba Exploration Program
MEO Australia Limited (MEO or the Company) reported Monday it has executed a Private Placement Agreement with London listed Leni Gas Cuba Limited (Leni Gas Cuba) to raise $1.4 million, with funds to be used to advance MEO’s exploration program on the Company’s newly awarded 919 square miles (2,380 square kilometers) 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 $0.0071 (AUD 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 percent interest in the Company.
Leni Gas Cuba is a specialist Cuban investment company listed in London and has businesses in Cuba ranging from oil and gas interests, tourism and import/export.
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 oil field. Block 9 contains the Motembo field, the first oil field discovered in Cuba. An ongoing technical review of Block 9 has confirmed the significant prospectivity of the PSC (Production Sharing Contract) 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 percent interest in the Block 9 PSC on Sept. 3, 2015. Petro Australis Limited holds a conditional 40 percent 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.
MEO’s CEO and MD Peter Stickland commented:
“We are delighted to welcome Leni Gas Cuba as a cornerstone investor. Leni Gas Cuba’s focus on Cuba is strongly aligned with MEO’s objective of advancing its Cuban interests, particularly with the exploration program at Block 9.
The placement is a strong validation of the significant value upside potential of Block 9 and highlights Leni Gas Cuba’s confidence in MEO’s assets and activities.”
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- MEO Australia Seeks Shareholder Approval to Rename Firm as Melbana Energy (Sep 28)
- MEO Australia: 4 Companies Interested in Beehive Farm-Out Deal (Sep 12)
- MEO Australia Provides Update on Projects in Australia, NZ & Cuba (Aug 15)