Highlights
- Alameda-3 appraisal well drilling commenced at 6:00 AM, 15 December (Cuba
time). Currently drilling ahead at 313mMD.
- Primary objectives are the appraisal of the two deeper and geological
independent Alameda and Marti reservoirs discovered by Melbana in 2022.
- These reservoirs were estimated to contain a combined 179 million barrels of
Prospective (recoverable) Resource (Unrisked Gross Best Estimate)1*.
- Secondary objective is to conduct a flow test of the oil in Amistad Unit-3.
Melbana Energy’s Executive Chairman, Andrew Purcell, commented: “It’s always exciting
when the drill bit starts spinning again, particularly when you know what you’re going to
encounter. The team is in good spirits, the weather is mild (save for some late afternoon
thunderstorms that would even impress a Queenslander) and we’re underway with a fit for
purpose appraisal program designed for the known subsurface conditions.
We are looking forward to confirming the oil quality, production rates and reservoir properties
of the two deeper reservoirs we encountered there last year. The best-case outcome is one
that would give us two vertically stacked and geologically independent productive reservoirs
to add to the several productive units that we have already established exist in the Amistad
reservoir above.
We are planning to flow test Unit 3 of the shallow Amistad reservoir in late January, following
which we’ll quickly be into the Alameda reservoir then the Marti reservoir, both of which gave
energetic influx of hydrocarbons into the well bore last time. If drilling goes according to plan
(hopefully better, like it did in Alameda-2, given this is also a well designed for the conditions)
we will be doing our first flow test in March.
We’re also targeting February for the release of the independent resource certifier’s
assessment of our reworked volumes for parts of the Amistad-1 reservoir, which we are looking
forward to seeing given the significant increase in net pay interval combined with lighter oil
than what was assumed in the previous assessment.
* 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.
Melbana Energy Limited (Melbana or Company), a 30% interest holder in and
Operator of Block 9 PSC onshore Cuba, is pleased to provide this operational update.
Alameda-3 drilling commenced
Drilling of the Alameda-3 Appraisal Well commenced at 06:00 local time on Friday, 15
December 2023 (see Figures 1 and 2). A short while ago the well was drilling ahead at
313mMD with heavy oil impregnation noted within samples. The 18-5/8” casing point will be
at ~425mMD.
The primary objectives of the well are the appraisal of the two lower geologically independent
oil-bearing reservoirs intercepted by Alameda-1 – (Alameda and Marti) (see Figures 3, 4 & 5).
Alameda-3 has been designed for the subsurface conditions encountered by Alameda-1 but
will otherwise be drilled from the same pad and twin the trajectory of the successful original
exploration well.
The well is planned to reach total depth of 3835mMD, ~40mTVD above a higher-pressure zone
seen in Alameda-1 (see Figure 3). The Alameda-3 well is planned to take 95 days to reach
total depth (see time estimate in Figure 4).
The testing plan is to run an open hole drill stem test (DST) in the Amistad Unit-3 reservoir
whilst drilling through the relevant part of the Upper Sheet (about thirty five days following the
commencement of drilling), then a slotted liner DST in the deepest Marti reservoir before finally
perforating up to three zones in the Alameda Reservoir zones for either separate or comingled
flow tests, depending on well results.
Whichever DST zone performs best will be completed for production (see Figure 6).
Alameda-3 is designed to prove the results of Alameda-1 which, although having considerable
oil shows sometimes accompanied by significant formation pressure in both the Alameda and
Marti intervals, was unable to conduct flow tests or collect oil samples for analysis.
Alameda-3 has been designed to accommodate the subsurface conditions encountered by
Alameda-1 and is therefore hoped to lead to an increase in the recoverable resource estimate
as well as confirm the presence of a lighter, more valuable oil (see Figure 6).
Updated Upper Sheet resource estimates
Work is close to complete on updating the resource estimates for the Upper Sheet Amistad
Units 1A and 1B. Prior to incorporating the results from Alameda-2 the best estimate
Prospective Resource for all units of the Upper Sheet totalled 88 million barrels*.
The Company’s technical team has incorporated the increase in net pay from 100mTVD to
615mTVD (after incorporating the natural fractures) with the much higher quality oil recovered
(19° API, 30 cP viscosity and low sulphur content) into an updated resource assessment which
is being discussed with our independent resources and reserves certifier.
Given the highly encouraging DST results in the Unit 1A, 1B and Unit 3, it is envisaged that
the central field area of highest confidence might be assigned Contingent Resource category.
Development planning underway
Work is continuing to determine the optimal way to bring the Amistad reservoir into production,
including engineering reviews of existing and required infrastructure, oil valuation and
commercialisation pathway studies and discussions with potential oil off takers.
