Melbana Energy's Block 9 in Cuba Unveils Significant Oil Reserves: A Game-Changer in the Energy Sector

$MAY Melbana Energy's Block 9 in Cuba Unveils Significant Oil Reserves: A Game-Changer in the Energy Sector

Melbana Energy Limited has announced a significant discovery in its Block 9 production sharing contract (PSC) onshore Cuba, marking a major milestone with the identification of substantial contingent and prospective oil resources. Independent evaluations by McDaniel and Associates of the Alameda-2 appraisal well results have confirmed the existence of 46 million barrels of contingent resources and an additional 90 million barrels of prospective resources in Unit 1B of the Amistad structure. This discovery not only elevates the asset's value but also sets the stage for an ambitious field development plan, aiming for the first oil export by the end of 2024.

Discovery and Evaluation Highlights

The contingent resources in the eastern area of Unit 1B have been classified as "Development Pending" with a 100% chance of discovery and an 80% chance of development.

The western area of Unit 1B holds 90 million barrels of prospective ... resources, with a 70% chance of discovery and an 80% chance of development.

These findings significantly exceed previous estimates by McDaniel for the same region, underscoring the potential of Block 9's oil-bearing structures.

Strategic Implications for Melbana Energy

Andrew Purcell, Melbana Energy’s Executive Chairman, emphasized the increased confidence in Block 9's resource potential, highlighting the 46 million barrels of higher quality oil in Unit 1B. This discovery supports an initial field development plan that is currently being finalized for partner and regulatory approvals, with aspirations to commence exports by late 2024.

Further Exploration and Appraisal Efforts

In addition to the Alameda-2 well's outcomes, Melbana Energy reported progress on the Alameda-3 appraisal well, which aims to further appraise the deeper oil-bearing structures beneath Amistad. The well has reached a measured depth of 3120 meters and continues towards its first coring point, marking another step forward in unlocking Block 9's full potential.

Technical and Operational Insights

The Alameda-2 appraisal well has provided crucial data, enhancing the understanding of Block 9’s resource potential. The integration of subsurface analysis, including well logs and core samples, has been pivotal in defining the updated resource estimates. Figures illustrating the fractured and oil-filled limestone cores from Unit 1B attest to the quality and exploitability of the discovered resources.

McDaniel & Associates’ Assessment Methodology

McDaniel & Associates conducted a probabilistic assessment in line with the SPE Petroleum Resource Management System (SPE-PRMS), leveraging a range of technical data provided by Melbana. Their methodology underscores the rigorous approach to estimating both contingent and prospective resources, emphasizing the significant potential of the Amistad structure within Block 9.

Forward-Looking and Regulatory Statements

The resource estimates are subject to various contingencies, including development plans, regulatory approvals, and economic factors. Melbana Energy remains committed to navigating these challenges, aiming to transform this discovery into a productive asset that contributes significantly to Cuba's energy landscape and the global oil market.

Melbana Energy’s announcement of maiden contingent resources and the upgrade of prospective resources in Block 9, Cuba, represents a watershed moment for the company and the Cuban energy sector. With a strategic focus on development and exploration, Melbana is poised to capitalize on this opportunity, aiming to enhance shareholder value and strengthen Cuba's position in the global energy market.

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