Cuba oil potential estimate revised higher

Cuba oil potential estimate revised higher
Melbana Energy more than doubles its reserve estimate onshore.
By Daniel J. Graeber | Feb. 1, 2017 at 7:08 AM

Feb. 1 (UPI) -- Cuba-focused Melbana Energy said it more the doubled its
reserve estimates for onshore oil, though recovery rates there are low
so far.

Melbana is one of the few Western oil companies, and the only one listed
on the Australian exchange, with a footprint in Cuba. In a statement on
its reserve estimates, CEO Peter Stickland said the 612 million barrels
of prospective oil in its Block 9 onshore area was "extraordinary."

"Significantly, these leads have the potential for billions of barrels
of oil-in-place however the prospective resources so far assume only the
historical 5 percent recovery factor from offset fields in Cuba," he
said. "The application of modern enhanced oil recovery techniques may
increase the recovery factor and therefore has the potential to
substantially increase the potential recoverable oil."

Primary recovery from oil deposits relates to natural pressure in the
reservoir. Secondary recovery involves water or gas injection into the
well to increase production. Enhanced oil recovery techniques include
further stimulation from steam, gas or chemical injections into the well.

The latest estimate for Block 9 is more than double its previous
forecast. Melbana said plans for an acceleration of its drilling
programs onshore Cuba are underway with the aim of finalized well
proposals by the end of the quarter.

The national oil company of Cuba, CUPET, extended its contract last year
for early exploration efforts in Block 9 by eight months to November
2017. Melbana estimates Cuban programs have a competitive operating cost
of around $7 per barrel of oil.

"Melbana is currently undertaking a detailed investigation of the
in-country operating environment to support the drilling program," the
company said.

Source: Melbana Energy: Cuba oil potential revised higher - UPI.com -
http://www.upi.com/Cuba-oil-potential-estimate-revised-higher/4171485948125/