Melbana Energy Gears Up for First Oil Shipment and Amistad-2 Drilling

Steady Progress at Block 9

Melbana Energy Limited (ASX: MAY) has provided a comprehensive update on its Block 9 Production Sharing Contract (PSC) operations in onshore Cuba, highlighting continuous oil production and imminent drilling activities. Since mid-April, the Alameda-2 well has been producing oil steadily, contributing to an inventory exceeding 15,000 barrels. This milestone sets the stage for the company’s first trial shipment anticipated by the end of June.

The company is managing production carefully, balancing cleanup operations and maintaining consistent output to optimize long-term performance. Oil is transported 50 kilometers on-site for primary separation before being stored locally, with minimal personnel required, which keeps operating costs low.

Amistad-2 Drilling Imminent

Preparations for the Amistad-2 production well are complete, with all necessary permits secured. The well is strategically positioned approximately 850 meters southwest of the Alameda-2 pad and designed to maximize oil recovery from the Unit 1B formation. Drilling is expected to commence shortly, followed by completion and testing phases that will inform future operational settings.

Meanwhile, civil works for the Amistad-3 well have begun, with drilling permits anticipated imminently. This well is planned to reach a depth of 1,625 meters, similarly oriented to intercept productive fractures within the reservoir, further expanding the field’s development potential.

Seismic Survey and Field Development

To enhance subsurface understanding and support efficient field development, Melbana has completed a LiDAR survey covering 445 square kilometers of Block 9, providing detailed surface topology data. Additionally, the company has concluded a tender process for a 3D seismic survey, receiving multiple proposals from international firms. The preferred contractor is expected to be selected soon, with acquisition planned to commence in Cuba’s next dry season starting November 2025.

This seismic data will be critical in mapping subsurface structures and guiding future drilling and development activities, particularly in the Alameda and Amistad fields.

Financing and Strategic Outlook

Melbana Energy is actively engaged in negotiations to secure financing that will underpin extensive field development. Executive Chairman Andrew Purcell emphasized that learnings from the initial production and upcoming Amistad-2 results will be pivotal in finalizing a funding facility expected before the end of the year. This financing is crucial to advancing the company’s development plan for Unit 1B and unlocking the full potential of Block 9.

Recent joint venture and regulator meetings have reviewed operational results and drilling plans, reflecting a collaborative approach to progressing the project within regulatory frameworks.