The gearing up of exploration in Cuba and in New Zealand would have been factors behind the increased after-tax loss for the December half year for Melbana Energy Ltd (ASX: MAY).
The company said yesterday that its loss for the six months was $A1.885 million ($NZ2.204 M) compared to the December 2016 half year loss of $A1.108 M.
Administration costs which had been high in the 2016 half year at $A1.117 M.
The company said its future prospects are centred on continuing to secure quality exploration, development and producing opportunities and seeking to maximise the value to shareholders of its current portfolio.
The company also needed to continue identifying and securing additional value-accretive projects, and/or undertaking a corporate transaction.
“Adequacy of funding will, for the immediate future, remain a key focus for the group and its shareholders,” Melbana said.
Melbana would look to raise additional funding either through farm-in/sale and/or capital injection to advance its projects.
“In the event that the group cannot meet its share of work programme commitments, permits may need to be surrendered,” Melbana added.
In a separate announcement this week Melbana detailed progress it was making on its oil and gas project in Cuba.
The company has executed an agreement with Cuba’s national oil company, Cubapetroleo, for the assessment of opportunities to enhance current oil production from the Santa Cruz oil field.
The agreement provides Melbana with an exclusive right to undertake studies to assess the potential to increase oil production from the Santa Cruz field with a view to exclusively negotiating a long-term incremental oil recovery production sharing agreement to undertake “oil production enhancement activities.”
If this contractual arrangement is finalised, Melbana would be entitled to incremental oil production above an agreed base line oil production rate from the Santa Cruz field.