" 1 would first like to provide an overview of Melbana’s Financial year to 30 June 2024.
During the reporting period we completed the appraisal of the three oil bearing formations wehad previously discovered in our Block 9 PSC, onshore Cuba. This marks the end of asuccessful exploration program commenced back in 2021, the best result of which (so far) isthe definition of a Contingent Resource of 46 million barrels of relatively high quality and easilyaccessible oil at a location close to existing oil field infrastructure.The next stage of this project’s development is to export the first trial cargo of oil from Cuba.
This has meant driving several parallel work streams, including obtaining the necessaryapprovals to export our Block 9 production, establishing an offshore marketing subsidiary,agreeing offtake terms with an international commodity trader and developing the necessarylogistical capabilities to transport the oil domestically then ship it internationally.
Our ambitionto achieve the first shipment in 2024 has been challenged by an unusual number of hurricaneslate in the season, but we remain committed to achieving this as soon as possible in the newyear
In addition, preparations for developing additional production wells in the shallow Unit 1Breservoir have continued apace. This will begin with the workover of the existing Unit 1Bcompletion in our Alameda-2 appraisal well. Our studies have delivered us valuable insightsinto how to repair the carbonate reservoirs to better maximise extraction as well as improveour well designs to minimise a repeat of this issue.
The Alameda-3 appraisal of the deeper two reservoirs was a disappointment, of course. Wehave now demonstrated that those structures contain significant volumes of hydrocarbons thatwe can return to, but our priority remains to extract the oil from the shallower, thus more easilyaccessible, oil in the Amistad formation. It is important to remember that the stable (choked)1,200 barrels per day of production we initially measured from Unit 1B was delivered throughperforated casing and only over 20% of the net pay. The next production wells are designedto allow production from the entire net pay (346 metres TVD).The promise of a substantial reward for our considerable efforts to date in Cuba remains verymuch alive and we and our partners remain committed to delivering it as soon as possible.
MAY Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
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