http://havanajournal.com/business/entry/cuba-unable-to-pay-debt-to-pebercan-for-oil-purchases-second-well-considere/

HavanaJournal.com: Cuba Business

Cuba unable to pay debt to Pebercan for oil purchases, second well considered

Posted June 26, 2008 by publisher in Cuba Business.
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Pebercan press release

PEBERCAN INC. (The “Company”), (TSX: PBC) - Given the difficult economic situation and the general context of increases in the cost of raw materials and food staples, Cupet has been unable to make April and May 2008 payments, as provided for in the November 2007 agreement which rescheduled the terms of payment of an outstanding debt.

Of the $39,136,000 owed to the Company, only $2,000,000 has been paid so far. For the record, this agreement stipulated the terms and conditions of monthly payments, of which $118,900 was payable from November 2007 to November 2008 and was partially guaranteed by the Banco Nacional of Cuba. Amounts previously stated relate to 100 % of Block 7, of which approximately 55 % is attributable to the Company.

Discussions are ongoing with Cupet, the Banco Nacional of Cuba as well as with Cuban authorities; however, these have not yet been conclusive but should, as in past, lead to a positive outcome.

As well, works on the Canasi 100 well were interrupted after numerous attempts to selectively isolate an important water gush. Both the logs and a few hours of testing have confirmed the presence of oil; therefore, the Company is contemplating drilling a second well in the same zone after detailed analysis of all relevant information.

Finally, the daily production of Block 7 is, since the beginning of the year, 20,004 barrels versus 19,650 barrels for the same period in 2007.

Pebercan’s interim consolidated financial statements and management report for the period ended December 31, 2008 are available on our Web site at http://www.pebercan.com, as well as on SEDAR at http://www.sedar.com.

Pebercan is involved in the exploration, development and exploitation of oil reserves in the Republic of Cuba. Pebercan sells its entire production to the Cuban government but is not bound by any restrictions regarding the sale of its oil. The Company’s shares are listed on the TSX and trade under the symbol PBC.

Legal Notice ─ Forward-Looking Statements

Forward-looking statements contained in this press release involve known and unknown risks, uncertainties or other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We consider that these forward-looking statements are reasonable given the hypothesis on which they are based and which the Board of Directors of the Company has reviewed and ascertained as being well founded. Pebercan disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Important additional information identifying risks and uncertainties is contained in the Company’s most recent annual and interim reports and forms filed with the applicable Canadian securities regulatory authorities.


For more information, please contact:

Renmark Financial Communications Inc.
Henri Perron: .(JavaScript must be enabled to view this email address)
Dan Symons : .(JavaScript must be enabled to view this email address)
Tel: 514 939-3989
Fax: 514 939-3717
http://www.renmarkfinancial.com

PEBERCAN Inc.
Christophe Ranger - .(JavaScript must be enabled to view this email address)
750 Marcel-Laurin Blvd., Suite 106, Saint-Laurent, Quebec H4M 2M4 - Canada
Tel.: 514 286-5200; Fax: 514 286-5177

Member Comments

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On June 26, 2008, publisher wrote:

Does Cuba ever pay for anything?

All I hear about is credit this and line of credit that and discounted rate here and there.

The only thing the Cuban government pays for ironically is food from US producers.

Anyway, interesting line about the second oil well in Canasi being considered. Maybe Cuba can sell the new oil to Pebercan to help pay their debt to Pebercan?

When will the Castro’s realize that a free country can feed itself and pay its bills.

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On June 27, 2008, nacho wrote:

Interesting statement!
Probably the second well will be considered as a downpayment for the debt?

Everyday there’s a new line of credit being considered or Cuba defaulting on this debt or the other. Shame because the country can do so much more

One leading international investor once gave me this line “Make sure you have a way of getting your money back if you invest in Cuba, or that you consider that money written off from the start.”

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On June 27, 2008, cubanpete wrote:

Cuba’s credit cards should be all cut in half.  The US embargo can’t be blamed for Cuba’s deadbeat crediting rating.  No wonder Cuban convertible pesos or chavitos are not traded internationally.  The only way to sell to Cuba is on a strictly cash basis - cash in advance before the goods are shipped.

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On July 12, 2008, grant wrote:

New York went bankrupt, not free??