Ann: Block 9 Alameda 3 Appraisal Update (Alameda reservoir), page-496

Alameda-1 Drilling UpdateHighlights- Oil continued to flow into the well bore in the Marti structure, interrupting plans toconduct short form tests in this highly pressured oil interval- Marti structure clearly has moveable oil in a highly energised environment and thereforewarrants a longer and more comprehensive testing program than can be delivered by theshort form test contemplated by the side track approach- Forward work plan is to isolate the Marti structure then conduct tests in the (immediatelyhigher) Alameda structure. The drilling rig will then relocate and commence drillingZapato-1, the second well in this exploration program- Planning for a more thorough test of the Marti structure will proceed with existingpreparations for a possible appraisal well into the Amistad (shallowest) structure atAlameda-1 following the completion of Zapato-1


Melbana Energy’s Executive Chairman, Andrew Purcell, commented: “The Marti structure isclearly the most exciting part of the first well and we now want to do a more conventional andextended testing program there. The highly pressured oil that continues to enter our well bore,despite the maximally weighted mud column we have put on top of it, speaks volumes about thepotential of this structure. This strongly influences our thinking about the sequencing of theforward work program so I look forward to being back with the team in Cuba the week after next toreview operations and the relative priorities of our various work streams following the completion ofthe Zapato-1 well (which we are all looking forward to commencing, too).