Melbana’s Cuba Drilling Faces Delays Amid Logistical Hurdles and Permit Shifts
Melbana Energy continues steady oil production in Cuba with new drilling underway, while securing critical permit variations in Australia that extend exploration timelines and reduce seismic obligations.
- Continuous oil production at Cuba’s Block 9 with over 33,000 barrels in inventory
- Amistad-2 well spudded despite logistical delays from hurricanes and power outages
- Preparations progressing for contingent Amistad-3 drilling in Cuba
- Australian permits WA-544-P and NT/P87 receive work program variations, removing seismic survey requirements
- Company ends quarter with $13.4 million cash and no lost time incidents
Steady Production and New Drilling in Cuba
Melbana Energy Limited has reported ongoing oil production from its Block 9 Production Sharing Contract (PSC) in Cuba, maintaining a crude inventory exceeding 33,000 barrels at the end of September 2025. The Alameda-2 well continues to deliver steady output, underpinning the company’s operational momentum in the region.
Despite facing significant logistical challenges; including hurricane damage to Cuban port facilities and widespread power outages impacting local infrastructure; Melbana successfully spudded the Amistad-2 well on 18 September. The drilling has progressed with surface casing set and cemented at 327 metres, and early signs of oil impregnation noted in formation samples, suggesting promising reservoir potential.
Advancing Future Drilling Plans
Preparations for the contingent Amistad-3 well are well underway, with civil construction of the well pad and access roads completed during the quarter. The permit to drill Amistad-3 is secured, and all necessary equipment has been staged in Cuba, positioning Melbana to quickly capitalise on exploration success from Amistad-2.
Strategic Flexibility in Australian Permits
In Australia, Melbana secured a variation to the minimum work requirements for its WA-544-P and NT/P87 permits in the Joseph Bonaparte Gulf. The variation removes the prior obligation to acquire extensive 3D seismic surveys in Year 4, replacing it with geological and geophysical studies and well planning. This adjustment extends the timeline for exploration activities, with the company now having until May 2027 to complete studies and until May 2028 to decide on drilling an exploration well.
The permits host the Hudson prospect, an isolated carbonate build-up that represents an untested but potentially significant play type in Australia. Melbana is actively seeking partners to fund exploration drilling, offering interests in the permits in exchange for financial backing, a move that could accelerate de-risking of this prospect.
Financial Position and Corporate Updates
Melbana closed the quarter with a healthy cash balance of $13.4 million and reported no lost time incidents, underscoring operational discipline. Payments to related parties, including directors’ fees, amounted to $182,000. Notably, the planned Cuba Energy Summit in Spain was cancelled, removing a potential platform for broader industry engagement during the period.
Overall, Melbana’s quarterly report reflects a company navigating external challenges while advancing key projects and maintaining financial resilience. The combination of ongoing production, active drilling campaigns, and strategic permit management positions Melbana to potentially unlock further value in both Cuba and Australia.
Bottom Line?
Melbana’s progress in Cuba and permit flexibility in Australia set the stage for pivotal exploration milestones ahead.
Questions in the middle?
- What are the expected timelines and targets for results from the Amistad-2 and Amistad-3 wells?
- How might Melbana’s farmout process for the Hudson prospect influence its capital structure and exploration strategy?
- What operational risks remain given Cuba’s logistical challenges and how might they impact production continuity?
