Crude Oil Discovered In Cuban Bay

CALGARY, Alberta -- Sherritt Inc., Fortuna Petroleum Inc. and Cubapetroleo, the state oil agency of Cuba, say they have discovered crude oil in Cuba's Bay of Cardenas.A significantly sized discovery of quality crude would throw a future lifeline to Cuba, facing severe economic crisis since the collapse of its old trade-and-aid partner the Soviet Union.The Bay of Cardenas well, first drilled Dec. 18, reached a total depth of 10,670 feet and tested 16-degree API oil at a rate of 3,750 barrels per day, the companies said.The oil was discovered Monday at the Cupey-1X well, drilled in shallow water in the province of Matanzas, they said, adding that drilling had been suspended pending further evaluation of the reservoir's size and quality.Companies from France, Britain and Sweden are also involved in oil exploration in Cuba, which has divided up its territory into 23 onshore and 11 offshore blocks for risk-exploration contracts. No other find has been reported so far.Sherritt, through its subsidiary Canada Northwest Energy Ltd., has a 60 percent interest in the well, while Fortuna has a 40 percent interest in a production-sharing contract covering the Block 10 Bay of Cardenas, the companies said. Fortuna is a unit of Talisman Energy Inc.Cuba, stretched for hard currency, imported under 6 million tons of oil last year. The shortage of oil -- the island is getting by on under half what it did in the 1980s -- has left supplies of electricity and transport hard hit.