MAY 0.00% 1.9¢ melbana energy limited

236M barrels drill program + big pressure to lift Cuba Embargo

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    As shareholders know MAY has a 30% interest in a two well exploration drilling program in Cuba starting in June that will test over 235 million barrels of prospective resource.

    This is a massive drill target. To put it into perspective here are some comments from the MD

    'So here we have a 416 million of oil equivalent, prospective resource previously with Cuba, it's all we had 236 million barrels in our drilling program. There, everything we're targeting, it's all elephant hunting.'

    Recently MAY updated the market. Things are heating up:
    • Long lead items orders
    • $16.5M cash on hand
    • Cuban work visas received
    • Construction of first well almost complete
    • First well mid 2021 - 32% chance at 143Mbls
    • 2nd well 95Mbl
    • 30% interest and carried for 85% of the costs

    The pressure on Biden to lift or relax the Cuba embargo is growing even bigger. I believe there could be some relaxation in the next 3 months.

    - There was recently a world day to end the US / Cuba embargo.

    - Chicago and other cities have denounced the embargo.

    - Hundreds of Cubans protesting in both Cuba and Miami

    It's a around 10 weeks till this get drilled. If MAY do discover oil there are plenty of trading partners with Cuba such as the EU. The big opportunity though is this noise and pressure being made by the left, dems and world nations to lift the US/Cuba embargo. That is MAY's ticket to a 10 fold increase in tenement value overnight IMO.

    Then keep in mind MAY also own 100% of Beehive, three contiguous permits covering an area of almost 8,000km2 in the Petrel sub-basin. Prospective for 1.6Bn barrels. A farm out here in the next 3-6 months is a decent chance IMO.

    Between the Cuban drill in June and the potential farm-out of Beehive this should do pretty nicely over the next few months.
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