Highlights: • Letter of Intent (LOI) for farmout of Block 9...

Highlights:
• Letter of Intent (LOI) for farmout of Block 9 signed with Anhui Guangda Mining Investment Co. Ltd., (“AGMI” a Chinese company providing oilfield services and equipment both in China and internationally
• LOI key terms o Melbana’s top three high impact exploration wells (Alameda, Zapato, Piedra) to be drilled by July 2020, with at least two of these wells to be drilled in 2019 o AGMI to replace Melbana cash backed bank guarantee o Melbana back-costs recouped in event of development o Melbana to retain 12.5% of profit oil under the Block 9 Production Sharing Contract o Melbana fully carried for 100% of all activities and costs for remainder of term of Block 9 PSC (20+ years) while AGMI remains a participant in Block 9
• Cuban regulatory approval obtained to execute LOI, targeting execution of binding agreement before end of 2018
• AGMI considering using the April 2018 drilling slot offered to Melbana by a local operator in addition to other options available at their disposal.
• Block 9 recently independently assessed1 to have 15.7 billion barrels of oil in place (best estimate) and recoverable Prospective Resources of 718 million barrels.
• LOI with program of three firm exploration wells provides multiple opportunities for a significant discovery in underexplored Block 9 onshore acreage