Posted February 15, 2007 by publisher in Cuba Business.
Below is an email (for public release) we recieved in its entirety:
REPORT ON OPERATIONS
Montreal, Québec, February 15, 2007– PEBERCAN INC. (the “Company”), (TSX: PBC) specializes in the exploration and production of hydrocarbons in Cuba. The common shares of the Company are listed on the Toronto stock exchange.
· Total Production on Block 7 is stable at 19,500 barrels/day;
· Two wells, Santa Cruz 104 and 201, will soon be completed;
· Agreement on a new payments schedule by Cupet during the first quarter of 2007, while the subsequent periods are currently being negotiated;
· Approval of the investment budget for 2007;
· Transfer of the Santa Cruz operational responsibilities to Sherritt which presently operates Canasi and Seboruco;
· Negotiations for the disposal of the rig are currently in progress; and
· Appointment of a new Country Manager in Cuba.
Total production from 100% of Block 7 is currently stable at approximately 19,500 barrels/day. As a result of the execution of the drilling program, the work on the Santa Cruz 104 and 201 wells will be completed in the next few days. The final work should confirm an increase in the production of the Santa Cruz field for 2007.
Ongoing negotiations with the Cuban authorities resulted in a new payments schedule providing for payments to be made over the course of the period covered by the first quarter. Pursuant to such payments schedule, Peberco, a wholly-owned subsidiary of Pebercan, received US$22.7 million in January (all of Block 7) and secured the first three February installments totaling US$15 million.
Further negotiations are planned to secure, at least, future payments.
The Company confirmed its commitments to develop the oil assets and the amount of its investments in relation thereto for the year 2007, Pebercan’ share representing a total investment of approximately US$65 million, including the drilling of 7 wells and ground level facilities. These investments were approved by Cupet.
In order to develop as many synergies as possible and reduce costs, Peberco delegated to Sherrit its operational responsibilities on the Santa Cruz field, since Sherrit already acts as operator on the Canasi and Seboruco oil fields. In connection therewith, Sherrit acquired Peberco’s inventory for approximately US$15 million, which is a price equal to its purchase cost.
Furthermore, Peberco strengthened its technical teams and appointed Mr. Hedi Amara to act as Country Manager in Cuba. His extensive experience in the oil sector, acquired mainly with Total and Petro-Canada, will undeniably add to the skillfulness of Peberco’s crews.
In view of the increasing role played by the Chinese rigs chartered by Cupet over the last 18 months, Pebermat decided to sell its rig.
All those decisions and measures taken should create positive conditions to enable the Company to implement its development program for 2007. The development program should result in an increase in oil production throughout the year.
Legal Notice - Forward-Looking Statements
The forward-looking statements contained in this press release involve a number of known and unknown risks and uncertainties as well as other factors, the effect of which may be that the Company’s actual results, performance and accomplishments differ significantly from the future results, performance and accomplishments stated or implied in such forward-looking statements. The Company has no obligation to update or modify such forward-looking statements, either as a result of new information, future events or for any other reason, and we expressly deny any such obligation in relation thereto. The Company’s most recent annual and interim reports and other documents filed with the relevant securities commissions and regulators in Canada contain important additional information on such risks and uncertainties.
For more information concerning the quarterly reports or annual reports, or to obtain additional information on the Company, please visit our Internet site at: http://www.pebercan.com and SEDAR’s Internet site at: http://www.sedar.com .
For additional information, please contact:
750, Marcel-Laurin Blvd., Suite 220 - Saint Laurent - Québec H4M 2M4 - Canada
Tel: 514-286-5200; Fax: 514-286-5177
RENMARK Financial Communications Inc
514-939-3989; Fax: 514-939-3717
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