TORONTO Jan 26 Shares of Pebercan Inc PBC.TO
and Sherritt International (S.TO) fell hard on Monday after
Cuba revoked a production-sharing agreement with the Canadian
Pebercan announced on Friday that Cubapetroleo SA, or
Cupet, had revoked their 16-year-old agreement, in exchange for
a $140 million payment.
Pebercan had rights to the Canasi, Seboruco and Santa Cruz
concessions, located between Havana and Matanzas on Cuba's
north coast. Output from the fields was 18,245 barrels a day in
the third quarter and all the oil was sold to the Cuban
The production-sharing agreement had been set to expire in
Pebercan was down 23.6 percent at C$1.07 on the Toronto
Stock Exchange, while Sherritt, a mining company that is
Pebercan's partner in the Cuban oil fields, fell 14.7 percent
Sherritt said in a statement on Monday that its share of
net oil production from the block was about 4,500 barrels a
day, or 26 percent of its overall Cuban oil production.
Sherritt will receive about $60 million of the $140 million
payment. The company said it continues to operate its 100
percent owned production sharing arrangements with Cuba.
(Reporting by Cameron French; editing by Rob Wilson)