Ann: Block 9 Alameda 2 Appraisal Update, page-321

CHAT GPT response to todays announcement:

Certainly, I'd be happy to explain the announcement you provided:

This announcement is an update from Melbana Energy Limited regarding their ongoing appraisal well project named Alameda-2, situated in Block 9 Petroleum Sharing Contract (PSC) onshore Cuba. Here are the key points of the announcement:

1. Presence of Moveable Oil and Flow Potential:The announcement confirms the existence of movable oil in Unit 3 of the Alameda-2 well. Testing has indicated that there is potential for the oil in this unit to flow at a rate of around 750 barrels of oil per day (bopd).

2. Oil Quality and Analysis:The quality of the oil in Unit 3 appears to be similar to that found in Unit 1. Samples of the oil are being analyzed in a laboratory to gain more insights.

3. No Formation Water Detected:During the flow test and analysis of logs, there was no observation of formation water. This is positive as formation water could dilute the valuable oil resource.

4. Location and Penetration:Unit 3 was drilled to a depth of 1,975 meters measured depth (MD), penetrating 200 meters updip (upward) and 500 meters to the south of Alameda-1, indicating the extension of the oil-bearing formation.

5. Net Pay and Fracturing:The logged net pay for the Amistad interval is now 346 meters TVD. When accounting for natural fracturing, the net pay increases to 615 meters TVD. This implies that the oil-bearing rock formation is extensive.

6. Testing Progress:The announcement mentions that testing of Unit 2 has started and Unit 1B testing is set to follow. These are different sections or layers of the well.

7. Chairman's Comment:Andrew Purcell, Melbana Energy's Executive Chairman, highlights the positive findings from Unit 3, which adds to the potential of the oil discovery in the Amistad interval. He also mentions the significance of natural fracturing in enhancing reservoir productivity.

8. Oil Characteristics:The oil found in Unit 3 is heavy and viscous, similar in nature to what was observed in Unit 1A.

9. Net Pay Calculation and Comparison:Net pay calculations reveal that Alameda-2 has higher net pay compared to Alameda-1, particularly when considering the contribution of fractures in the reservoir.

10. Potential for Future Production:The oil from Unit 3, like that from Unit 1A, could potentially be produced in the future using artificial lift mechanisms.

11. About Block 9 PSC:The announcement provides an overview of the Block 9 PSC, its size, location, and its connection to the Varadero oil field. The company has identified several structural prospects and leads within the block.

12. Appraisal Well Program:The announcement explains that Alameda-2 is part of a larger appraisal well program aimed at understanding the characteristics and production potential of different intervals within the well.

Overall, the announcement highlights the promising findings from the appraisal well project and the potential for future oil production based on the data obtained so far.

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