Why Did Melbana Energy's Alameda-2 Flow Test Generate Excitement?
SYDNEY, AUSTRALIA - In a significant development for Melbana Energy Limited (ASX: MAY), the company has successfully completed a flow test of lighter oil to the surface in its Alameda-2 appraisal well. This test yielded promising results that have excited industry experts and investors alike. Here's a breakdown of the highlights from the flow test:
Peak Flow Rate and Oil Characteristics
During the flow test, Unit 1B of the Amistad Formation produced a peak flow rate of 1,903 barrels of oil per day. On average, the stabilised flow rate was measured at 1,235 barrels of oil per day. What makes this oil even more promising is its significantly lighter nature, with an API gravity of 19°, and lower viscosity, measured at 30 centipoise (cP). This distinguishes it from the heavier oil typically found in other units of the Amistad Formation.
Production and Water Observations
The flow test also showcased great potential for production, as over 1,000 barrels of oil were produced and transported for further analysis.
Story Continues.. after this ad because we need some dollarydoos
Additionally, no formation water was observed either during the flow test or from the logs, reinforcing the viability of the project.
Implications for Resource Estimates
Melbana Energy's Executive Chairman, Andrew Purcell, expressed delight at the successful appraisal well. He pointed out that the higher quality of oil found in Unit 1B has tremendous implications for the value of the produced oil and the potential for higher recovery rates. These results were achieved by perforating less than 20% of the total Net Pay for Unit 1B, showcasing the immense productivity potential of the oilfield.
A Success Across Multiple Units and Future Plans
To recap, the Alameda-2 appraisal well has proven the existence of moveable oil in Unit 3, achieved high flow rates of superior quality crude in Unit 1B, and confirmed a significant increase in the logged Net Pay to 615 meters TVD (with fractures) for the Amistad sheet as a whole. This success opens up more production options for Melbana Energy as it finalizes its field development plan.
In light of these positive results, the company is now considering the possibility of not abandoning Alameda-1, as had been previously planned. Instead, Melbana Energy is reassessing its field development strategy and weighing the value of continued operations in Alameda-1.
This update comes as Melbana Energy remains a 30% interest holder in and the operator of Block 9 PSC onshore Cuba. The company's achievements in the Alameda-2 appraisal well demonstrate the tremendous potential and value waiting to be unlocked in this oilfield.
Promote your business on our growing investor platform: Advertise With Us
Berkshire is hoarding so. much. cash.
Buffet indicator is showing some wild times ahead perhaps, combine that with Berkshires record high cash hoard of 30%... chart via barchart.com / Longtermtrends
Looks like we're going through something, but who would have thought with all these tarrifs, inflation and trade wars going on
Where does this end up long term with small stocks suffering white giant caps are taking all the coin?
🔺 Student Loan Delinquencies Hit Record 12.9%...
The spike in red reflects financial strain returning fast. Credit card delinquencies are rising too, hinting that lower-income consumers might be nearing a breaking point. What's going on...
#ASX:ASN Is Anson Resources’ US$330M Financing Deal the Key to Unlocking Utah’s Lithium Potential?
