Melbana Targets 16 Million Barrels in Amistad-2 Drilling, Workover Set for February

Cuban Operations Gain Momentum

Melbana Energy Limited (ASX: MAY) has delivered a robust quarterly update for the period ending 31 December 2024, underscoring significant operational progress in its Cuban Block 9 Production Sharing Contract (PSC). The company is advancing its development plan with a workover of the Alameda-2 well slated for early February, aiming to remediate formation damage and enhance production potential.

The workover is a critical first step in Melbana’s phased development of the Amistad Unit 1B reservoir. Following this, the drilling rig will immediately mobilise to drill the Amistad-2 well from Pad #9, targeting a high-confidence resource estimated at 16 million barrels. This well is strategically positioned updip from Alameda-2 to maximise reservoir contact and flow potential.

Technical Innovations and Reservoir Management

Melbana has developed a bespoke Reservoir Drilling Fluid (RDF) to mitigate drilling-induced formation damage observed in previous wells. This water-based fluid is designed to maintain formation integrity while enabling effective drilling operations. Detailed core sample analyses, including scanning electron microscope imaging, have informed the RDF’s formulation, confirming its suitability for the Unit 1B reservoir’s geological characteristics.

The simplified well design for Amistad-2, expected to be completed open-hole with contingency for a slotted liner, reflects lessons learned from earlier drilling campaigns. The approach aims to bring the well into production swiftly post-drilling, minimising downtime and operational risk.

Commercial and Corporate Developments

On the commercial front, Melbana’s subsidiary has been officially approved as the operator in Cuba, a milestone that consolidates the company’s control over project execution. Concurrently, negotiations are progressing on oil offtake contracts with an international trader, a key step towards monetising production and establishing export logistics.

Melbana maintains a healthy cash position of $9.7 million at the quarter’s end, providing financial flexibility to support ongoing development activities. The company is also actively engaging with potential partners and financiers to underpin the Block 9 project’s next phases.

Australian Exploration Assets

Beyond Cuba, Melbana continues to manage its Australian exploration permits, including 100% interests in WA-544-P and NT/P87, which hold carbonate platform prospects analogous to nearby drilling targets. The company is seeking farm-in partners to fund seismic surveys and potential drilling campaigns. Additionally, interpretation of the reprocessed Pantheon 3D seismic survey over AC/P70 in the Timor Sea is underway, with a farmout process anticipated to follow.

Outlook

Melbana’s near-term focus remains on executing the Alameda-2 workover and commencing Amistad-2 drilling, while advancing commercial arrangements to enable first oil exports. The company’s strategic positioning in Cuba, combined with its technical innovations and financial discipline, sets a promising stage for unlocking value from its assets.