UPDATE 1-Cuba revokes Canadian oil producer's contract

(Adds details. In U.S. dollars unless noted.)

CALGARY, Alberta Jan 23 (Reuters) - Pebercan Inc PBC.TO, a Canadian company that produces oil in Cuba, said on Friday that Cuba's national oil company has revoked its production-sharing contract and will pay the Montreal-based firm $140 million.

Pebercan did not say why Cubapetroleo SA, or Cupet, had revoked the 16-year-old agreement, which was to expire in 2018.

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 per day in the third quarter and all the oil was sold to the Cuban government.

The company said its partner in the Cuban oilfields, Sherritt International Corp (S.TO), would receive $60 million from the lump sum payment.

Pebercan said in a statement it has agreed to transfer all its assets in the Caribbean nation to Cupet once it receives the lump-sum payment, expected by the middle of February.

The company said it will take a charge against its earnings when it releases its first-quarter results and will look for other opportunities once it is paid by Cupet.

Cupet declined comment.

Pebercan shares were halted late on Friday afternoon on the Toronto Stock Exchange, last trading at C$1.40. (Additional reporting by Esteban Israel)

($1=$1.23 Canadian) (Reporting by Scott Haggett; editing by Peter Galloway)