Block 9 $13.5 Billion for 20 years, page-6

Hi Josu7,
Without wishing to dampen the magnificent results and enthusiasm here to date, estimates on contained oil in place( OIP) and recoverable oil are 2 completely different scenarios. May have estimated 2.5 billion barrels oil in place in the upper sheet, The recovery factor used in Cuba is 5% , so that is 125 million bbls potentially recoverable in the upper sheet, which they hope to improve on, especially if it is lighter API. I think they will improve on this however, the recovery numbers will always be acutely lower than OIP.May has 30% of the project now, so that is net 37.5 mm bbls of recoverable oil from the upper sheet to May…..
Magnificent story here for Long suffering Melbana shareholders and the country of Cuba, however Investors do need to understand acute differences between oil in place and recoverable oil …and base numbers on those.
disclosure…I took a position back here some weeks ago…