How is Melbana Energy Planning the Development and Commercialization of the Amistad Reservoir?

$MAY How is Melbana Energy Planning the Development and Commercialization of the Amistad Reservoir?

Melbana Energy Limited, holding a 30% interest in and operating Block 9 PSC in Cuba, commenced drilling of the Alameda-3 Appraisal Well at 6:00 AM on December 15, 2023. The well, currently drilling ahead at 313mMD, aims to appraise the deeper Alameda and Marti reservoirs discovered in 2022, estimated to hold a combined 179 million barrels of Prospective Resources.

Appraisal of Alameda and Marti Reservoirs

The primary objective of the Alameda-3 drilling is the appraisal of the Alameda and Marti reservoirs. These geologically independent reservoirs have shown promising signs of hydrocarbon presence. Additionally, the drilling program includes a secondary objective to conduct a flow test of the oil in Amistad Unit-3.

Andrew Purcell on Project Optimism

Andrew Purcell, Executive Chairman of Melbana, expressed enthusiasm for the project's progress. He highlighted the team's positive spirits and the mild weather conditions aiding the operation. The goal is to confirm oil quality, production rates, and reservoir properties ... of the deeper reservoirs, with a best-case scenario of establishing multiple productive units.

Drilling and Testing Schedules

Melbana plans to flow test Unit 3 of the Amistad reservoir in late January. The company anticipates reaching the Alameda and then the Marti reservoirs thereafter, with a first flow test scheduled for March. Additionally, February is targeted for the release of an independent resource certifier’s assessment of Amistad-1 reservoir volumes.

Alameda-3 Well Design and Goals

The Alameda-3 well, designed for the subsurface conditions encountered by Alameda-1, aims to reach a total depth of 3835mMD. It will drill from the same pad as Alameda-1, following a similar trajectory. The well's total drilling duration is estimated to be 95 days.

Revising Upper Sheet Resource Estimates

Melbana's technical team is updating resource estimates for the Upper Sheet Amistad Units 1A and 1B. The revised estimates incorporate increased net pay intervals and higher quality oil characteristics. Discussions are ongoing with an independent certifier to potentially assign these areas a Contingent Resource category.

Preparing for Production

Melbana Energy is actively planning the development of the Amistad reservoir for production. This includes engineering reviews, commercialisation pathway studies, and discussions with potential oil offtakers. The company aims to determine the most effective approach to capitalize on the promising discoveries within the Amistad reservoir.

A Step Forward in Cuba’s Energy Sector

The Alameda-3 drilling project represents a significant advancement for Melbana Energy and the broader energy sector in Cuba. With the potential of substantial oil reserves in the Alameda and Marti reservoirs, the project not only promises to enhance Melbana’s resource portfolio but also contributes to the development of the country's energy resources. The success of this project could have far-reaching implications for the region's energy supply and economic growth.

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