Cuba - Block 9 Drilling Program
• Drilling operations forecast to commence in early September 2021.
• Construction of well pad and access roads for first exploration well completed.
• Orders placed for manufacture and supply of drilling inventory and equipment. Goods arriving in Cuba subsequent to the end of the quarter.
• Melbana’s project management team for the upcoming two well drilling program arrived in Cuba.
• WA-488-P (the permit containing the Beehive prospect) was sold to a subsidiary of EOG Resources, Inc. (NYSE: EOG). EOG intends to drill an exploration well targeting the Beehive Prospect following receipt of regulatory approvals.
• Melbana to receive an upfront payment of US$7.5 million as consideration, subject to receipt of regulatory approvals for the sale. It may also receive a further payment of US$5 million, subject to satisfaction of certain conditions subsequent, and a royalty payment of US$10 million for every 25 million barrels of oil produced in the event of a successful exploration well.
• Payment of $397,000 received from sale of AC/P50 to Santos and SapuraOMV and is also entitled to future royalty payments in the success case. Exploration well planned for 2022.
• Option granted to Santos and SapuraOMV over AC/P51 which, if exercised, would result in Melbana receiving similar payments and contingent royalties as for the sale of AC/P50.
• Appointment of Chief Financial Officer and Company Secretary.
• Cash balance of $10.7 million at end of quarter
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