- Melbana Energy (MAY) announces a maiden prospective resource for its Hudson prospect in the Northern Territory
- The company believes it could produce up to 395 million barrels of oil
- Melbana further believes it could produce more than 2 billion cubic feet of gas
- However, the estimates are “probabilistic” in nature
- Melbana shares are down 2.2 per cent to 8.9 cents at 3:50 pm AEST
Melbana Energy (MAY) has delivered a maiden prospective resource estimate for its Hudson prospect in the Northern Territory.
The company provided two scenarios for the total potential recoverable amount of hydrocarbons at the Hudson Prospect in licence areas WA-544-P and NT/P87 in the well-understood Bonaparte Gulf.
The “oil only scenario” shows a potential for a total of 395 million barrels of oil being recovered.
Its “gas-only scenario”, meanwhile, sits at 2.034 billion cubic feet.
A prospective resource estimate is a lower-to-mid confidence ranking for oil and gas deposits. The system works in a similar fashion to the JORC code for miners.
The company noted it used a “probabilistic” method to arrive at the estimate.
The maiden resource also marks something of a sea change for Melbana Energy, which has been trying to produce oil from Cuba for the last few years, with mixed success.
Meanwhile, NYSE-listed oil and gas player EOG is expected to begin drilling in the adjacent Beehive prospect in the Bonaparte Gulf which Melbana sold to EOG in 2021.
Melbana shares were down 2.2 per cent to 8.9 cents at 3:50 pm AEST.