Melbana Energizes Cuba Drilling and Unveils Australian Resource Potential

Cuba Block 9: Operational Momentum Builds

Melbana Energy Limited (ASX: MAY) has made tangible progress in its Cuban Block 9 Production Sharing Contract (PSC) during the March quarter. The company commenced a workover on the Alameda-2 well in February, targeting remediation of near-well formation damage in the Amistad Unit 1B reservoir. This intervention included acid washing and re-perforation, followed by an extended cleanup flow phase designed to enhance production potential.

Simultaneously, civil construction for the Amistad-2 well pad (Pad 9) began ahead of schedule, setting the stage for drilling operations planned for the June quarter. Amistad-2 is strategically positioned approximately 800 metres from Alameda-2 and aims to intersect multiple fracture zones within the Unit 1B pay interval, leveraging lessons learned from prior drilling to optimise flow rates.

The near-term objective remains clear: to export the first cargo of crude oil from the field, with production from Alameda-2’s cleanup flow contributing to this milestone. Melbana’s in-house and external technical teams have applied a sophisticated approach, including the use of a proprietary non-damaging reservoir drilling fluid, to maximise the well’s productivity.

Australian Offshore: Maiden Resource Estimates Signal Upside

On the Australian front, Melbana announced maiden Prospective and Contingent Resource estimates for its 100% owned AC/P70 exploration permit offshore Western Australia in the Timor Sea. The Prospective Resource is estimated at an unrisked gross best estimate of 2,754 billion cubic feet (Bcf) of gas and 43 million barrels (MMbbl) of oil, while the Contingent Resource for the undeveloped Vesta and Swan fields stands at 276 Bcf and 34 MMbbl (2C).

These estimates follow a proprietary reprocessing of publicly available 3D seismic data, which significantly enhanced the imaging quality and revealed larger exploration targets within the working petroleum systems. The Swan gas field, discovered in 1973 and appraised in the early 1990s, and the Vesta oil and gas field, discovered in 2005, both remain undeveloped but hold promising potential given their proximity to existing infrastructure.

Melbana is actively seeking a farm-out partner to share the financial burden and technical expertise required to advance exploration and development activities in AC/P70. The company has engaged advisors to facilitate this process, aiming to secure upfront cash contributions and fund the upcoming exploration well.

Financial Position and Corporate Updates

Melbana closed the quarter with a cash balance of $7.6 million, reflecting prudent financial management amid ongoing operational expenditures. Payments to related parties, including directors’ fees, amounted to $137,000 during the period. The company reported no lost time incidents, underscoring its commitment to health and safety standards.

Looking ahead, the successful spudding and results of Amistad-2 will be critical to validating the production ramp-up strategy in Cuba, while securing a farm-out partner for AC/P70 could unlock significant value from the Australian permits. Investors will be watching closely as Melbana navigates these pivotal developments.