SYDNEY, AUSTRALIA - Melbana Energy Limited (ASX: MAY) (Melbana) is pleased to provide this update on preparations for its 2023 appraisal drilling program in Block 9 PSC (Melbana 30%) commencing in Q1 2023.
Approvals Received, Permits and Budgets Approved
Over the past week a number of technical, financial and administration meetings were held in Havana, Cuba. Melbana formally presented its 2023 work program and budget to the Cuban regulator, Union Cuba Petroleo (CuPet). The 2023 program to drill two appraisal wells off the same pad used for this year's successful Alameda-1 well was approved. Subsequent to these meetings, the Block 9 partners (Sonangol Pesquisa & Producao (Sonangol) and Melbana, as operator) formally approved the 2023 work program and budget that had first been presented at meetings held in Melbourne back in August of this year
Permitting for the commencement of drilling of the first appraisal well is advanced, with all material permits now having been received. The few remaining approvals are typically sought just prior to the commencement of drilling to formally allow work to begin.
Preparations for Drilling
The well pad used for the drilling of Alameda-1 is in good condition, as are the access roads and the camp site that were built about this time last year. The construction materials used have weathered and compacted well, with the only material work that now needs to be undertaken being the recreation of the fluid pits that were filled in following the completion of Alameda-1 for safety reasons. In addition to these works, the well pad is to be expanded in a couple of places to both accommodate the introduction of storage tanks and other plant and equipment necessary to manage the oil production expected from the flow testing of the Upper Sheet units.
Following the completion of works at Alameda, Melbana's civil contractor will complete the remediation of the Zapato well pad and fill in the cellar containing the well head. Sherritt Rig #1 is now back at Sherritt's yards in Varadero undergoing routine maintenance and recertification, where necessary, following the completion of a 15 month drilling program. These works are expected to be completed early in the new year, following which the rig will be mobilised back to the Alameda pad. The rig will initially be erected over the Alameda-1 well to formally plug and abandon it before being transferred circa 25 metres to the Amistad-1 surface location. In parallel, the self contained camp for site personnel will be re-established and the existing water wells be brought back into service by installation of pumps and tanks.
These data allowed the Upper Sheet to be interpreted as three separate units (refer to Figure 8 on on page 7). Amistad Unit 1: from the top of the carbonated formation at 466 metres MD to an interpreted fault at 1,270 metres MD (subdivided into two units), oil was observed in the mud and fluorescence in the samples but log quality was generally too poor for reliable analysis. This was later determined to be due to an issue with the drill bit, which was allowing fluids to escape unpredictably leading to a wash out of the well bore. Unit 1 exhibited strong oil shows with increased gas shows in several zones. Amistad Unit 2: extended from below Unit 1 to 1,652 metres MD when a shale interval was encountered. Again there were oil shows, oil in fractures and increased gas shows over multiple logged zones. The pressure exhibited was similar to Unit 1. Amistad Unit 3: from about 1,750 metres MD to the bottom of the Upper Sheet at around 1,892 metres MD had strong oil shows across the shakers accompanied by increased pressure. This suggested an effective top seal and new reservoir compartment. Unit 3 was also intercepted significantly down-dip on structure. These oil influxes under high pore pressures with good porosity and high mud gas readings make this Amistad interval a strong candidate for an appraisal well.The objectives of this appraisal well, in addition to sampling the oil to determine its quality, is to flow oil from each of these units to determine whether there is communication between them and, if so, to what extent.
Melbana Energy's Executive Chairman, Andrew Purcell, commented: 'Having just returned from Cuba, I can confirm that preparations are advancing satisfactorily for the drilling of this first appraisal well. Good appraisal results would be a very significant outcome for us, not just because of the significant volumes of oil that may exist at this location but because success heightens the appeal of adjacent structures with similar characteristics. Given the extended time frame for the second well we drilled this year, it is easy to forget how dynamic Alameda-1 was. What an exciting year 2023 is going to be, testing the potentially enormous volumes of oil beneath our feet.'
Contact:
Mr Andrew Purcell
Executive Chairman
Mr Theo Renard
Company Secretary
T: +61 2 83 23 66 00
MELBANA ENERGY LIMITED 
