Cuba Block 9 Valuation, page-26

Cuba - new light oil discovery in northern fold belt: Cuba national oil company (Cubapetroleo or Cupet) has reported to Cuban media a significant discovery of lighter than typical crude oil in an exploration well drilled on the Bacuranao prospect in the northern part of the western region of the island. The discovery was made late in 2017 and has been undergoing long term testing for 10 months. Cupet representative Mr Osvaldo Lopez reported that the oil produced from the field has a density of 22° API, which is the highest quality oil discovered in the area and is encouraging for oil exploration activities in the area. The Bacuranao discovery is in the northern fold belt trend that continues into Melbana’s Block 9 and is in close proximity to the Santa Cruz oil field, for which Melbana is currently in exclusive negotiations to finalise an incremental oil recovery contract.