Hope that it is okay to promote other O&G stocks on here... think that's what this thread is also about
Recommend that people scope out
Melbana (MAY.asx). Have recently been loading up on this one with their very exciting upcoming drilling program. Current writing a report that should hopefully be up sometime this weekend. But for a brief intro:
Only a month (starting Sep) until the drill hits the ground in their Block 9 Cuban asset and seems the market isn't aware of what's occurring with MAY... Melbana has a 30% interest in Block 9 Onshore Cuba with 2 wells planned for this year. Joint venture partner with Sonangol, Africa's second-largest O&G company, who is paying for 85% of costs and Melbana gets to remains operator. The best estimate of the two wells is 236m barrels of oil with a cost per barrel being approx $10. With oil prices currently being $70+ the resource is over US$4.2b for Melbana. No royalties to the Cuban government.
There are another 19 leads in Block 9 which after this 2 well program, Melbana will undertake Seismic to further define the prospects. They have great seismic data, a good geologist board and are drilling close to previous wells that discovered hydrocarbons! The September drilling has a 32% COS and is a triple stacked target that can be hit with 1 well.
Cuba is an extremely oil starved nation importing a vast majority of its oil. Melbana has already secured offtakes with the Cuban national oil company that would see them purchase oil at international prices. Melbana also has the ability to sell the oil internationally. The way I see it is that Melbana is a cross between IVZ (unloved jurisdiction, Cuba desperately needs the oil, major economic development for Cuba) and BRK (large prospects with multiple leads)
Melbana also has an offshore Cuba Santa Cruz project, the Aussie Tassie Shoal project is in the pipeline and the company receives Royalties from their recently sold Aussie Beehive project. EOG bought the Australian Beehive prospect from MAY this year. The project is one of the largest undrilled hydrocarbon prospects in Aus (up to 1.4 billion barrels of oil). Drilling of the beehive is expected to start mid next year. As per the contract of the sale, MAY receives US$10m for each 25 million barrels of oil produced (roughly US$560m)
My extremely basic projections place the SP around 21c by March next year (Disallowed). The first target to be hit late Sep, second target start of Nov and final target end of Nov. Then they're going straight to the 2nd prospect commencing drilling at the start of Jan and concluding mid-March
Just to keep in mind... Melbana is currently offering a CR entitlement issue of 2 Shares for every 13 Shares held by shareholders on the 10th of August at an issue price of 2c. This also comes with 1 free option for every 2 shares issued. Options exercisable at 3.5c in 12 months.
https://www.nextoilrush.com/asx-juniors-under-drilled-cuban-oil-asset-puts-it-in-multi-billion-barrel-company/https://dpsi7pmz5b6vt.cloudfront.net/uploads/ckeditor/picture/6799/MAY_AX_IIR_181113.pdf
