MEO Australia advances exploration program in Cuba
MELBOURNE, Australia -- MEO Australia Limited has announced it has executed a Private Placement Agreement (PPA) with London listed Leni Gas Cuba Limited to raise $1.4 million, with funds to be used to advance MEO’s exploration program on the company’s newly awarded 2,380 km2 onshore oil block, Block 9 in Cuba.
Under the PPA, MEO will issue Leni Gas Cuba 140,716,573 shares at an issue price of A$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.
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 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 Sept. 3, 2015. Petro Australis 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.
