News: MAY Melbana Says Regulatory Approvals For Transfer Of Interest In Block 9 To Sonangol In...

Jan 24 (Reuters) - Melbana Energy Ltd (MAY) :

• CUBAN REGULATORY APPROVALS FOR TRANSFER OF INTEREST IN BLOCK 9 TO SONANGOL IN PROCESS
• EXPRESSIONS OF INTEREST FOR DRILLING, WELL SERVICES INVITED FROM ORGANISATIONS WITH CUBAN CAPABILITY AND EXPERIENCE
• NEGOTIATION OF ADDITIONAL FORMAL DOCUMENTATION WITH SONANGOL PROCEEDING SATISFACTORILY
• WORKING CLOSELY TOGETHER TO FINALISE A FARMOUT AGREEMENT WITH SONANGOL
• MELBANA IS TO HAVE A 30% INTEREST IN BLOCK 9
• SONANGOL WILL PAY CO ABOUT $5.0 MILLION TO COVER ITS EXPENDITURE TO DATE RELATED TO BLOCK 9
• SONANGOL TO FUND 85% OF COSTS ASSOCIATED WITH COMPLETION OF DRILLING OF MELBANA'S ALAMEDA AND ZAPATO TARGETS
• SONANGOL ALSO REVIEWING DUE DILIGENCE IT CONDUCTED ON MELBANA IN Q3 OF LAST YEAR
• SONANGOL TO EARN A 70% PARTICIPATING INTEREST IN BLOCK 9 PSC THROUGH FUNDING COSTS
• SONANGOL HAVE OPTION TO ASSUME OPERATORSHIP OF BLOCK 9 PSC AT CONCLUSION OF THIS TWO WELL DRILLING PROGRAM
• CUPET SAID INTERNAL RESTRUCTURING EXPECTED TO BE COMPLETED IN FEB 2020, NECESSARY STEP FOR NEGOTIATIONS BETWEEN CUPET & CO