MEO Australia Raises Funds for Cuba Exploration Program
by MEO Australia Ltd.|Press Release|Monday, February 29, 2016
MEO Australia Limited (MEO or the Company) reported Monday it has
executed a Private Placement Agreement with London listed Leni Gas Cuba
Limited (Leni Gas Cuba) to raise $1.4 million, with funds to be used to
advance MEO's exploration program on the Company's newly awarded 919
square miles (2,380 square kilometers) onshore oil block, Block 9 in Cuba.
Under the placement agreement, MEO will issue Leni Gas Cuba 140,716,573
shares at an issue price of $0.0071 (AUD 0.01) per share. The placement
of shares to Leni Gas Cuba falls within MEO's placement capacity and
will make Leni Gas Cuba MEO's single largest shareholder with a 15.8
percent interest in the Company.
Leni Gas Cuba is a specialist Cuban investment company listed in London
and has businesses in Cuba ranging from oil and gas interests, tourism
Cuba boasts exceptional oil and gas prospectivity. The Block 9 PSC area
is in a proven hydrocarbon system with multiple discoveries within close
proximity, including the multi-billion barrel Varadero oil field. Block
9 contains the Motembo field, the first oil field discovered in Cuba. An
ongoing technical review of Block 9 has confirmed the significant
prospectivity of the PSC (Production Sharing Contract) area, with
initial analysis identifying recovered oil from a number of previously
drilled wells and a number of structural leads and prospects. MEO
expects to complete its preliminary assessment of Block 9's
prospectivity and reprocessing of 2D seismic data by mid-year.
MEO is prequalified as an onshore and shallow water operator in Cuba and
was awarded a 100 percent interest in the Block 9 PSC on Sept. 3, 2015.
Petro Australis Limited holds a conditional 40 percent back-in option.
MEO's established position in Cuba provides a strong early mover
advantage ahead of ongoing strengthening of diplomatic relations between
Cuba and the US.
MEO's CEO and MD Peter Stickland commented:
"We are delighted to welcome Leni Gas Cuba as a cornerstone investor.
Leni Gas Cuba's focus on Cuba is strongly aligned with MEO's objective
of advancing its Cuban interests, particularly with the exploration
program at Block 9.
The placement is a strong validation of the significant value upside
potential of Block 9 and highlights Leni Gas Cuba's confidence in MEO's
assets and activities."
Source: NEWS | MEO Australia Raises Funds for Cuba Exploration Program
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