Melbana Energy Limited reported that an initial two well appraisal program in Block 9 PSC (Melbana 30%) is to be drilled starting in first quarter 2023. The drilling of the Alameda-1 exploration well in 2021/2022 resulted in our gaining a deeper understanding of the subsurface geology in Block 9 as well as valuable experience in drilling these types of formations in Cuba. We encountered significant gross intervals of moveable hydrocarbons in each of the three reservoirs we encountered, but they were often under higher pressure than we were expecting.

Whilst generally a good thing, as it can be a predictor of good reservoir performance, the exploration well we designed had its contingencies thoroughly tested and as a result we were unable to collect clean samples of the oil that flowed at us or conduct tests to determine the performance characteristics of these reservoirs. The wells we have designed for the appraisal program beginning in the new year can handle the drilling conditions we now know we will encounter, plus our drilling team and their contractors have gained a lot of experience from the two wells they have drilled together in Cuba. Planning for the appraisal program also contemplates that the wells may be put on extended production tests.

In that case, production will be held in tanks on site then trucked as necessary to the nearest oil battery some 50 kilometres away (as is currently the practice for other producing fields nearby).