MEO Australia is targeting early 2017 as a spud date for Cuba’s Block 9, taking its cue from Canada’s Sherritt International’s identifications in adjacent Bock 10, as it ponders a high impact exploration well in New Zealand and seeks to complete farm out processes in Australia.
The Melbourne-based explorer said following assessment of the Lower Sheet play, continuing assessment of the remaining two plays, the Upper Sheet and Shallow Tertiary plays, was progressing as planned. Preliminary assessment was expected to be completed in the fourth quarter.
MEO is the only ASX listed company with exposure to Cuba’s energy sector through its 100% interest in onshore Block 9, which has been estimated to hold 8 billion barrels of oil in place with almost 400 million barrels recoverable, with further resource upside to come from the two additional oil plays undergoing review.
The company said it had commenced work to accelerate the potential for early drilling in Block 9, based on significant resource potential identified in the Lower Sheet play. Meo has identified the A2 lead and follow up to the Marti-5 oil recovery as targets, which it says could be drilled on existing data with up to two wells planned for early next year.
MEO will watch developments closely in Block 10 last this year as Sherritt drills a high impact well which it hopes will further validate the prospectivity of its Block 9 licences.
MEO Managing Director Peter Stickland said: “Cuba Block 9 is particularly exciting for the company and we are busy working on a number of fronts to accelerate the potential for drilling on Block 9. Given the huge resource potential we identified in the first of the three play types on Block 9, we are looking forward to seeing the results of the assessment of the remaining two plays.”
MEO said it continues to assess the prospectivity of PEP1153 in New Zealand pending a decision in the fourth quarter to proceed with a high impact exploration well. At the same time, the company said preliminary discussions were underway with a number of potential farmout … for its Beehive prospect, which it seeks to complete in the fourth quarter.
