CUBAN OIL NEWS

SOME INFOMATION

28 August 2023 5:57 GMT UPDATED  28 August 2023 6:14 GMT
By Amanda Battersby

in Singapore
Australian independent Melbana Energy has delivered with the appraisal well on its Alameda oil discovery on its Block 9 onshore Cuba and Unit 1B is being completed to allow for future production.

Melbana advances Cuba oil appraisal drilling
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Melbana’s executive chairman, Andrew Purcell, said that the appraisal well has been a “tremendous success” and gives the company more shorter-term production options to consider when finalising its field development plan.
“We’re also now reassessing whether there may be value in not abandoning Alameda-1, which is the current plan, before commencing Alameda-3 to appraise the two deeper intervals,” he said on Monday.
The Alameda-2 appraisal well successfully flowed 1903 barrels per day of oil at peak with an average stabilised rate of 1235 bpd. The operator noted that the recovered oil was “significantly lighter” at 19 degrees API and of a lower viscosity than other units in the Armistad formation.
More than 1000 barrels of crude were trucked away during the test during which no formation water was observed.
“What an excellent finish to an already successful appraisal well. Unit 1B has really delivered, as we hoped would be the case given the high fracture density and excellent permeability and porosity we observed in the logs when drilling through that unit,” added Purcell.

“That it contains higher quality oil has implications for the value of the oil produced and the possibility of higher recovery rates than were assumed in our original resource estimates, too. Importantly, these results were obtained by perforating less than 20% of the total net pay for Unit 1B (when incorporating fractures) and the flow rate exceeded our expectations for a vertical test at such a shallow level.”
The Alameda-2 appraisal well produced oil to surface from Unit 1A, achieved strong flow rates of a higher quality crude from Unit 1B, proved the existence of moveable oil from Unit 3 and confirmed a significant increase in logged net pay to 615 metres, according to Melbana.
Further laboratory testing of Unit B’s oil’s properties is in progress to better understand its commercial and production characteristics.
However, a drill stem test run over the Unit 2 interval did not demonstrate moveable hydrocarbons to surface in that location.
The Unit 1B section has now been completed for future production while Units 1A and 3 will be suspended for potential future development and production.
Earlier and quicker production

The field development plan for Block 9 is now being reviewed given these results support investigating earlier and quicker production from this Amistad formation. Going forward, the rig will next be prepared for a move to the Alameda-1 wellhead, located on the same pad.
A decision on whether to proceed with the plug and abandonment of that well is now being reassessed in light of the Alameda-2 results.
The next appraisal well, Alameda-3, will test the lower two geologically independent oil-bearing formations intercepted by Alameda-1 – designated Alameda and Marti, respectively.
Melbana’s technical team has identified 19 structural prospects and leads within Block 9, a large onshore area of more than 2300 square kilometres located on the north coast of Cuba in a proven hydrocarbon system and along trend with the multi-billion barrel Varadero oilfield.
The Australian company operates the Block 9 production sharing contract with a 30% interest. Melbana is being fully funded for its share of the appraisal costs by Angola’s state-owned Sonangol, which is farming in for the majority 70% stake.