Highlights
- Peak flow to surface 1,903 barrels of oil per day from Unit 1B (stabilised average
flow rate 1,235 barrels of oil per day)
- Significantly lighter (19° API) and lower viscosity (30 cP) oil compared to other
units in the Amistad Formation
- Over 1,000 barrels of oil produced and trucked away during testing
- No formation water observed during the flow test or from logs
- Unit 1B now being completed to allow for future production
Melbana Energy’s Executive Chairman, Andrew Purcell, commented: “What an excellent finish
to an already successful appraisal well. Unit 1B has really delivered, as we hoped would be the
case given the high fracture density and excellent permeability and porosity we observed in the logs
when drilling through that unit. That it contains higher quality oil has implications for the value of the
oil produced and the possibility of higher recovery rates than were assumed in our original resource
estimates, too. Importantly, these results were obtained by perforating less than 20% of the total
Net Pay for Unit 1B (when incorporating fractures) and the flow rate exceeded our expectations for
a vertical test at such a shallow level.
To recap, the Alameda-2 appraisal well produced oil to surface from Unit 1A, achieved strong flow
rates of a higher quality crude from Unit 1B, proved the existence of moveable oil from Unit 3 and
confirmed a significant increase in logged Net Pay to 615 metres TVD (with fractures) for the Amistad
sheet in total - about 45% of the gross section. It has been a tremendous success and gives us
more shorter-term production options to consider when finalising our field development plan.
We’re also now reassessing whether there may be value in not abandoning Alameda-1, which is the
current plan, before commencing Alameda-3 to appraise the two deeper intervals.”
SYDNEY, AUSTRALIA
Melbana Energy Limited (MAY) (Melbana or Company), a 30% interest holder in and operator
of Block 9 PSC onshore Cuba, provides this update on its Alameda-2 appraisal well.
The Alameda-2 appraisal well has completed flow testing of Unit 1B in the Amistad Formation – the
last unit to be tested by this well.
Unit 1B was intersected between 649 metres and 1,039 metres TVD, approximately 78 metres up
dip and 40 metres to the south of where it was intersected by Alameda-1. The 7” casing which was
placed over Unit 1B in Alameda-2 was successfully perforated over 70 metres TVD, less than 20% of the Net Pay interval in Unit 1B. The test was conducted over an initial 24 hour period on a variety
of choke sizes, during which a stabilised average flow rate of 1,235 bopd was measured over 12
hours on a 36/64” choke. This was followed by a shut-in period of 48 hours and a further 6 hour flow
period, during which additional samples were taken.
The test in Unit 1B has confirmed the presence of moveable oil considerably lighter than that
observed in Unit 1A. The fluid produced to surface was close to 100% oil with almost zero comingled
water and no formation water observed in either the test or the wireline logs.
Initial laboratory analysis indicates an API of 19° and a lower viscosity (30 cP) than oil recovered
elsewhere in the Amistad interval. This oil is of a higher quality and should be suitable for refining.
Further laboratory testing of the oil’s properties is in progress to better understand its commercial
and production characteristics. A DST run over the Unit 2 interval did not demonstrate moveable
hydrocarbons to surface in that location.
To date, over 1,000 barrels of oil have flowed naturally to surface during the testing program and the
resultant production trucked to a nearby oil tank battery. The Unit 1B section has now been
completed for future production, whilst Units 1A and 3 will be suspended for potential
future development and production.
The field development plan for Block 9 is now being reviewed given these results support
investigating earlier and quicker production from this Amistad Formation.
Going forward, the rig will next be prepared for a move to the Alameda-1 well head, located on the
same pad. A decision on whether to proceed with the plug and abandonment of that well is now
being reassessed in light of the Alameda-2 results.
The next appraisal well, Alameda-3, will test the lower two geologically independent oil-bearing
formations intercepted by Alameda-1 – designated Alameda and Marti, respectively.
ABOUT THE BLOCK 9 APPRAISAL WELL PROGRAM
Block 9 PSC is a large onshore area of more than 2,300km2 located on the north coast of Cuba in a
proven hydrocarbon system and along trend with the multi-billion barrel Varadero oil field. Melbana’s
technical team has identified 19 structural prospects and leads within Block 9.
Melbana completed an initial two well exploration program in 2022, the first of which (designated
Alameda-1) encountered three geologically independent oil-bearing intervals, each with moveable
oil accompanied by high pressure, that were subsequently independently estimated to contain oil in
place of 5.0 billion barrels for a Prospective Resource of 267 million barrels (gross unrisked best
estimate)*,1 - an 89% increase of the predrill prognosis.
Melbana then designed a two well appraisal program to better understand the characteristics of
these intervals and their production potential. The first of these appraisal wells,
designated Alameda-2, is testing the three oil bearing units of the shallowest interval called Amistad.
Drilling of Alameda-2 commenced in June 2023.
Following the completion of Alameda-2, the second appraisal well (designated Alameda-3) will test
the two deeper intervals called Alameda and Marti. The scope of these appraisal wells includes
coring, wireline logging, flow testing and quality analysis.
Prospective Resources Cautionary Statement - The estimated quantities of petroleum that may
potentially be recovered by the application of a future development project(s) related to
undiscovered accumulations. These estimates have both an associated risk of discovery and a risk
of development. Future exploration appraisal and evaluation is required to determine the existence
of a significant quantity of potentially moveable hydrocarbons.
