Some thoughts on potential Farmin partners.
1.
Petros Australis Energy.- August 2017 announced intention to exercise to back in right for 40% interest in block 9 (conditional option granted in 2012), which fell through after failure to obtain regularity approvals.
- Now Cupet approved.with plans to drill a 4200MD exploration well 2025/2026 in a neigbouring block
- Just raised $24m in June 24 with in an IPO pre-offer intended for 2025.
- IPO is more likely to be successful if already in partnering in Cuban production field.
- The market is unlikely to respond positively to another exploration well in Cuba, unless issues with Almedea are solved.
2.
Anhui Guangda Mining Investment Co. Ltd
- Billion dollar plus Chinese Company originally signed Letter of Intent in October 2018 to drill 3 wells (Alameda, Zapato and Piedra) by 2020.
3. Sherrit International
- was producing 14,500 bpd in Cuba up until 2018, mostly from shallower wells
- last exploration well (onshore to offshore target) was abandoned in 2020 due to technical difficulties.
- would want to keep its drilling operations employed after current stint with Cupet.
- Income stream currently heavily reliant on the Cuban Government's ability to pay on time.
- melbana's production to be exported and as such more certainty of payment arrangements.
- have first hand knowledge of what is achievable from Production of existing 2 wells and the next 2 wells.
- AP did state at the AGM that Sherrits rig was better suited for drilling of shallower targets such as 1B.
4. Other Chinese companies (Greatwall Drilling Co, subsidiary of Chinese National) have current interests or shown in interest in Cuba oil exploration.
5. Canadian Exploration and Oil producers.
Sonangol current sharing contract required the upfront payment of USD $5m and commitment to 85% of the cost of first two wells (say $60m) for an untested exploration play, based on estimated oil in place, which has now been increased six fold, with contingent reserves in place.
As such as a minimum, would expect a farmin would involve a significant upfront payment (to the JV) of a participation fee/reimbursement of costs and 100% funding of the next 2 production wells.
(20min delay)