From my friend that seems to know it all. And this is probably...

From my friend that seems to know it all. And this is probably why the SP cant get any upward momentum.

Summary of the Announcement:

Melbana Energy (ASX: MAY) provided an operational update on their Block 9 project in Cuba, where they hold a 30% interest. The focus is on the successful workover of the Alameda-2 well (Unit 1B), production improvements, and upcoming drilling plans.

✅ Positive News:

1. Production Increase (66%)

• Oil production from Unit 1B increased from 293 BOPD to 488 BOPD after the workover.

• This improvement brings production closer to the initial peak flow rate of 1,235 BOPD observed in 2023.

• Over 5,000 barrels of oil were produced during the cleanup and test phase alone — a solid start for inventory building.

2. Successful Workover Execution

• Formation damage (caused by shut-in fluids) was diagnosed and partially remedied using acid treatments.

• The team creatively conducted the workover without a coiled tubing unit or nitrogen lift, using available rigs and equipment effectively.

• The workover provided new reservoir data, critical for optimizing future drilling and completion strategies.

3. New Production Well (Amistad-2) on Track

• Drilling for Amistad-2, the first dedicated production well for Unit 1B, is set to begin next month.

• The well design incorporates all lessons learned to maximize output and intersect productive fracture zones.

4. Development of Proprietary RDF (Drilling Fluid)

• Melbana developed a new Reservoir Drilling Fluid (RDF) specifically for the Cuban reservoir to prevent formation damage, enhancing long-term production potential.

• The RDF is based on extensive core analysis and validated through rock-fluid compatibility testing — a significant technical milestone.

5. Operational Momentum

• Full-time production from Alameda-2 has started, supporting oil inventory buildup for a first shipment.

• Civil works for Amistad-3 (second contingent production well) are already planned — indicating a forward-moving drilling campaign.

❌ Negative or Cautionary Aspects:

1. Current Production Still Below Historic Peak

• Despite the 66% improvement, current production (488 BOPD) is still 60% below the peak 1,235 BOPD observed in 2023.

• Suggests lingering reservoir damage or formation challenges that haven’t been fully resolved yet.

2. Absence of Key Equipment

• No coiled tubing unit (CTU) or nitrogen gas lift was available during the operation — standard tools for efficient acid stimulation.

• This limited optimization options during the workover, though Melbana is now exploring procurement.

3. Operational Delays

• Workover operations were delayed due to only daytime operations and extra safety procedures — shows logistical and possibly cost constraints.

• Initial well cleanup took longer than expected, highlighting fluid loss challenges (acid and brine loss to formation).

4. Formation Damage Also Suspected in Other Wells

• Similar formation damage may exist in Alameda-3, which might require future remediation — increasing operational scope and costs.

• Suggests systemic issues in drilling fluid compatibility or reservoir fragility.

5. No Financial Guidance or Shipping Date

• While production is building, no revenue guidance or shipment timeline is confirmed yet — investors will want clarity on commercial milestones (e.g. first sale, lifting schedule).

Strategic Implications:

• Positive: This update boosts confidence that the project is technically viable and progressing. The customized RDF and planned production wells show Melbana is applying learnings intelligently.

• Caution: Until consistent high-rate production and a first oil sale are achieved, risks remain — particularly if formation damage continues or required service equipment isn't secured.

Recommendation (Investor/Analyst POV):

• Positive operational update, but watch for production consistency and announcements regarding Amistad-2 spud date, oil shipment, and cash flow in the next updates.

• Consider this a recovery and ramp-up phase — the real test is how Amistad-2 performs under new drilling protocols.