MONTREAL, Aug. 15, 2016 /CNW/ - LGC Capital Ltd. (TSXV: QBA) ("LGC") is pleased to announce that one of its portfolio companies, Australian listed MEO Australia Limited ("MEO Australia") (ASX: MEO), issued a press release today providing an operational update and near term drilling plans and further resource update plans for its Cuban Block 9 onshore oil acreage, and a farmout update for its Beehive Project in Australia and for its New Zealand oil and gas acreage.
LGC's interest in MEO Australia has increased to approximately C$6.8 million, a nearly 5 fold increase from LGC's original entry price. LGC holds 140.7 million shares (15.8%) of MEO Australia and is its largest shareholder.
David Lenigas, LGC Capital Ltd's Co-Chairman & CEO, commented; "Our investment in MEO is proving very successful to date with this investment providing a balance sheet boost to LGC of $6.8 million, and we see continued strong interest on this investment going forward as they progress a number of exciting opportunities in their significant oil portfolio in Cuba, Australia and New Zealand. Cuba Block 9 is particularly significant, as they work to accelerate the potential for drilling on Block 9. Given the potential already identified in the first of the three play types on Block 9, we are looking forward to seeing the results of the assessment of the remaining two plays on the Block and their drilling updates."
MEO Australia's press release is available on its web site at www.meoaustralia.com.au, under "Investor Relations/ASX Releases".
The full MEO Australia Media Release is as follows:
ASX & Media Release
- Assessment of resource potential of Upper Sheet and Shallow Tertiary plays on the Cuba Block 9 PSC progressing with initial results expected in Q4 2016
- Opportunities for accelerated drilling on Block 9 currently being explored with a plan for an initial drilling program expected to be completed in Q1 2017
- A potential high impact well on Cuba Block 10 operated by Sherritt International, next to Block 9, drilling this year
- Assessment of New Zealand acreage prospectivity underway with forward drilling program to be determined in Q4 2016
- Farmout process underway to fund drilling of the potentially giant Beehive Prospect in the Bonaparte Basin
MELBOURNE, AUSTRALIA (15th August, 2016)
MEO Australia Limited (ASX: MEO) is pleased to provide the following update regarding the progress and near term plans of the Company's key projects.
Cuba – Block 9 Production Sharing Contract
- Following on from the assessment of the resource potential of the Lower Sheet play, the Company's assessment of the resource potential of the remaining two plays, the Upper Sheet and Shallow Tertiary plays, is progressing as planned. MEO expects to complete the preliminary stage of this assessment in the fourth quarter of 2016. These resources are in addition to the previously announced resource potential of the Lower Sheet play.
- MEO has also commenced the work required to accelerate the potential for early drilling in Block 9 based on the significant resource potential identified in the Lower Sheet play. MEO has identified the A2 Lead and follow up to the Marti-5 oil recovery as targets which could potentially be drilled on existing data. MEO is aiming to finalise a drilling plan by the first quarter of 2017 for up to two wells in Block 9.
- Sherritt International Corporation plans this year to drill a high impact well on neighbouring Block 10 PSC which, if successful, will provide further validation of the significant prospectivity of MEO's Block 9 PSC in Cuba.
- To support these activities, MEO has opened a representative office in Havana and appointed former Cupet Exploration Director Dr Rafael Tenreyro as its representative in Cuba.
New Zealand – PEP51153
- The Joint Venture is progressing its assessment of the prospectivity of PEP51153 and in the fourth quarter will consider whether to proceed with drilling the high impact exploration well.
Offshore Australia – WA-488-P
- The farmout process for the Beehive prospect has commenced, with preliminary discussions underway with a number of parties.
- Reprocessing and inversion studies undertaken by MEO support that Beehive is one of the largest undrilled hydrocarbon prospects in Australia.
- MEO is seeking to complete the farmout process in the fourth quarter of 2016.
MEO Managing Director & CEO Peter Stickland commented:
"While MEO has a number of exciting opportunities in its portfolio, Cuba Block 9 is particularly significant for the Company and we are busy working on a number of fronts to accelerate the potential for drilling on Block 9. Given the … potential we identified in the first of the three play types on Block 9, we are looking forward to seeing the results of the assessment of the remaining two plays. We are also excited to be working towards progressing early drilling opportunities which we identified during the assessment of the Lower Sheet play with the A2 Lead and follow up to the Marti-5 oil recovery being particularly exciting. We look forward to keeping the market informed as we progress these activities in the coming months."
Managing Director & Chief Executive Officer
About LGC Capital
LGC Capital is one of the few public listed companies globally whose primary purpose is investing primarily in the fast-growth Cuban economy. The company has significant shareholdings and joint ventures in well-established international businesses operating in the Cuban Oil and Gas, Sport, Consulting, Travel, Events, TV and Film Production support, Agricultural, Renewables and Import & Export sectors.
Caution Regarding Press Releases
LGC Capital Ltd. has not made any independent inquiries as to the accuracy or completeness of the press release issued by MEO Australia and LGC Capital Ltd. assumes no responsibility for the contents thereof.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE LGC Capital Ltd
For further information: Please contact: Company & Media Contacts, Canada contact: Rafi Hazan, Secretary and Director, Tel.: (514) 839-7234; London Office contact: David Lenigas, Co-Chairman and Chief Executive Officer, Mazen Hadad, Co-Chairman, Anthony Samaha, Chief Financial Officer, Tel.: +44 (0) 20 7440 0640; Investor Relations Contact, Dave Burwell, The Howard Group Inc., Tel.: (403) 221-9015, Toll Free: 1-888-221-0915, Email: firstname.lastname@example.org