New Risk • Nov 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 18% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 7.5% per year over the past 5 years. Revenue is less than US$1m. Minor Risks Share price has been volatile over the past 3 months (18% average weekly change). Market cap is less than US$100m (AU$26.5m market cap, or US$17.1m). New Risk • Sep 27
New major risk - Revenue and earnings growth Earnings have declined by 7.5% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 7.5% per year over the past 5 years. Revenue is less than US$1m (AU$235k revenue, or US$154k). Minor Risk Market cap is less than US$100m (AU$71.9m market cap, or US$47.1m). New Risk • Sep 23
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (186% accrual ratio). Revenue is less than US$1m. Minor Risks Latest financial reports are more than 6 months old (reported December 2024 fiscal period end). Market cap is less than US$100m (AU$64.3m market cap, or US$42.3m). Announcement • Sep 10
Melbana Energy Limited, Annual General Meeting, Nov 20, 2025 Melbana Energy Limited, Annual General Meeting, Nov 20, 2025. New Risk • May 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (186% accrual ratio). Revenue is less than US$1m. Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Market cap is less than US$100m (AU$87.6m market cap, or US$56.7m). New Risk • Sep 22
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$53m free cash flow). Share price has been highly volatile over the past 3 months (26% average weekly change). Revenue is less than US$1m. Minor Risks Latest financial reports are more than 6 months old (reported December 2023 fiscal period end). Market cap is less than US$100m (AU$94.4m market cap, or US$64.2m). Announcement • Sep 10
Melbana Energy Limited, Annual General Meeting, Nov 19, 2024 Melbana Energy Limited, Annual General Meeting, Nov 19, 2024. Announcement • Jul 31
Melbana Energy Limited Announces Change of Company Secretary Melbana Energy Limited announced that Uno Makotsvana has been appointed as Company Secretary, effective immediately. This follows the resignation of Cate Friedlander as Company Secretary on 30 July 2024. Ms Anshul Aggarwal will continue as the person nominated under Listing Rule 12.6 for communication with ASIC in relation to Listing Rule matters. Recent Insider Transactions • Jul 18
Executive Chairman of the Board recently bought AU$101k worth of stock On the 12th of July, Andrew Purcell bought around 5m shares on-market at roughly AU$0.022 per share. This transaction amounted to 1.9% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Andrew has been a buyer over the last 12 months, purchasing a net total of AU$226k worth in shares. New Risk • Jun 20
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: AU$144.9m (US$96.7m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$53m free cash flow). Revenue is less than US$1m. Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Market cap is less than US$100m (AU$144.9m market cap, or US$96.7m). New Risk • Jun 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$53m free cash flow). Revenue is less than US$1m. Minor Risk Share price has been volatile over the past 3 months (13% average weekly change). Recent Insider Transactions • Nov 07
Executive Chairman of the Board recently bought AU$100k worth of stock On the 3rd of November, Andrew Purcell bought around 2m shares on-market at roughly AU$0.064 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Despite this recent buy, Andrew has been a net seller over the last 12 months, reducing personal holdings by AU$726k. New Risk • Sep 25
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2022. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (18% average weekly change). Revenue is less than US$1m. Minor Risk Latest financial reports are more than 6 months old (reported December 2022 fiscal period end). New Risk • Sep 09
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2022. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (19% average weekly change). Revenue is less than US$1m. Minor Risks Latest financial reports are more than 6 months old (reported December 2022 fiscal period end). Shareholders have been diluted in the past year (2.7% increase in shares outstanding). Announcement • Sep 06
Melbana Energy Limited, Annual General Meeting, Nov 16, 2023 Melbana Energy Limited, Annual General Meeting, Nov 16, 2023. New Risk • Aug 16
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 14% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Revenue is less than US$1m. Minor Risks Share price has been volatile over the past 3 months (14% average weekly change). Shareholders have been diluted in the past year (14% increase in shares outstanding). Announcement • Jun 08
Melbana Energy Limited Appoints Chris McKeown as Chief Commercial Officer Melbana Energy Limited reported the following addition to its management team. Dr. Chris McKeown has joined as Chief Commercial Officer. Chris has held a range of Executive roles including CEO and VP Business Development in projects in Europe, the Gulf of Mexico, Southeast Asia, New Zealand and Australia. Over his 26-year career, Chris has commercialized oil and gas assets, delivered new country entries and farmouts and generated over AUD 1 billion in corporate deal flow. He joins Melbana after a decade with New Zealand Oil & Gas which has assets in New Zealand, Australia and Indonesia. Recent Insider Transactions • May 18
Executive Chairman of the Board recently sold AU$876k worth of stock On the 16th of May, Andrew Purcell sold around 10m shares on-market at roughly AU$0.088 per share. This transaction amounted to 4.1% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Andrew has been a net seller over the last 12 months, reducing personal holdings by AU$826k. Announcement • Feb 16
Melbana Energy Limited Announces Cuba, Block 9 PSC Update on Alameda 2 Appraisal Well Melbana Energy Limited provided this update on preparations for the Alameda-2 well, the first of two appraisal wells planned this year in its Block 9 PSC area onshore Cuba (Melbana 30%). Preparations for the drilling of Alameda-2 are nearing completion. The final drilling approval was received this week and all required materials are now in country and in Melbana's control. The final shipment of some additional inventory items are scheduled to arrive in Cuba in the first week of April. Melbana's drilling contractor, the same one that was used for the previous two exploration wells, has advised that the rig is expected to be released from its current project in the third week of March, following which it will commence mobilisation to the Alameda pad near the township of Marti for the drilling of Alameda-2. Civil works at the pad have been completed. The principal goal of this well is to allow oil to flow independently from each of the three productive units in this reservoir encountered by the Alameda-1 exploration well that completed last year. Alameda-2's specific objectives are to: recover oil to surface from each of the three units of the Amistad reservoir; evaluate the quality of the recovered oil; · assess the production characteristics of these reservoirs; take cores to determine petrophysical properties; and increase reported net oil and gas pay from the current estimate of 48 metres by successfully logging the 290 metres of gross pay excluded previously. Reaching these objectives in a satisfactory manner should allow for an assessment of the commercial potential of this first reservoir and the establishment of a maiden reserve. The trajectory of Alameda-2 is the same as used for Alameda-1, other than modifying the deviation to allow Unit 3 to be penetrated in an updip structural position. Announcement • Jan 24
Melbana Energy Limited Provides Update on Preparations for Its First Appraisal Well in Block 9 PSC Melbana Energy Limited provided the update on preparations for its first appraisal well in Block 9 PSC (Melbana 30%). Preparations for the drilling of the Alameda-2 well to appraise the Amistad reservoir are advanced. Mobilisation notices will be given to contractors in early March and drilling operations will commence following the removal of the Alameda-1 wellhead and plugging and abandonment of that well. Alameda-1, the first of two exploration wells completed in Block 9 last year, targeted a large compressional structure compose of stacked sheets of limestone separated by thrust faults. Oil was encountered within three gross intervals identified as Amistad, Alameda and Marti structures. The Alemada-2 well, the first of two appraisal wells planned for this year, will test the Amistad interval which has been subdivided into three units. Mapping of these units reveal that Alameda-1 intercepted them downdip at all levels, thereby suggesting there is considerable updip potential above the established oil-bearing zones with each unit extending over a large prospective area. The top of the Amistad interval demonstrated strong oil shows over a gross interval of 1,426mMD commencing almost immediately below the surface casing shoe at 466mMD, entered about a week after drilling commenced. Numerous influxes of oil into the wellbore were recorded when flow checks were conducted whilst drilling this interval, in addition to fluorescence within samples and elevated mud gas readings in excess of 40%. A significant (~290 metres) of this interval did not produce satisfactory logs due to poor hole conditions and therefore could not be factored into the estimates for the volume of oil that may be present. Some of this interval saw the strongest oil influx into the well bore experienced whilst drilling this interval. Regardless, the interval that was satisfactorily logged allow for an estimate of 48 net metres of oil and gas pay across 11 zones totalling 415 metres of gross section. This was later independently assessed to contain 2.5 billion barrels of oil in place with a combined 88 million barrels of Prospective Resource (gross unrisked Best Estimate). The second appraisal well, Alameda-3, will be drilled later in the year and will test the deeper Alameda and Marti intervals. Alameda-2 is to be drilled off the same drill pad as was used for Alameda-1. The design of Alameda-2 has been modified to incorporate the lessons learned from drilling Alameda-1. The slimmer hole design now being employed should maintain better hole integrity, thus improving the likelihood of being able to log the sections where this was not possible previously. If successful, it is hoped this additional potential oil pay might allow for an increase of the previous estimates for oil in place and Prospective Resource contained in this interval. Otherwise, the trajectory if Alameda-2 is the same as Alameda-1, other than modifying the deviation to allow Unit 3 to be penetrated in an updip structural position. The appraisal will include conducting flow tests in order to better understand the properties of the reservoir as well as take samples to ascertain the quality of the oil encountered therein. To aid in calibrating petrophysical properties and reservoir description, which will be valuable when planning further appraisal and production activities, three fully cored sections are planned within the thicker net pay zones identified whilst drilling Alameda-1. If successful, allowance has been made to keep Alameda-2 as a future oil producer. The access roads, camp and pad as were used for drilling Alameda-1 are to be used for drilling Alameda-2. Their physical conditions remain good, but Melbana's civil contractors have completed any necessary remediation works and the site is now ready to accept mobilisation. Moreover, they have improved the Alameda pad in accordance with Melbana's instructions to deliver certain operational efficiencies considered desirable given the experiences gained from the previous two well drilling campaign. The pad has also been expanded to accommodate tanks for storing the oil expected to be produced from flow testing and the creation of additional access corridors for the tanker fleet to transport the stored oil without interrupting drilling operations. All material permits for the commencement of drilling operations have been secured. Alameda-2 is to be drilled by the same contractors that drilled Melbana's first two exploration wells in Block 9. This was considered optimum, given the considerable operational experience that has been gained and the enhancements effected to the rig spread for the conditions encountered subsurface. Maintenance and re-certification work for contractors' equipment has been completed satisfactorily. Melbana has also expanded its project management team in Cuba to ensure additional experienced engineering expertise is available for the management of the upcoming program, building on the experience of the existing team that now has good operating history in country. Additional HSE resources have also been engaged to allow for greater oversight of operations, community engagement and further minimisation of any environmental impact the operations may have on the local community Office renovations have also recently been completed to accommodate these additional personnel in the project management office in Varadero. The valuable experienced gained drilling the first two exploration wells in Cuba has been factored into the planning for this year's appraisal wells. Sufficient materials are in inventory in country for the drilling of Alameda-2 and inventory not already in stores is well advanced and expected to be delivered to Cuba in advance of the projected start of drilling operations. Announcement • Nov 16
Melbana Energy Limited Reports an Initial Two Well Appraisal Program in Block 9 PSC (Melbana 30%) Is to Be Drilled Starting in First Quarter 2023 Melbana Energy Limited reported that an initial two well appraisal program in Block 9 PSC (Melbana 30%) is to be drilled starting in first quarter 2023. The drilling of the Alameda-1 exploration well in 2021/2022 resulted in our gaining a deeper understanding of the subsurface geology in Block 9 as well as valuable experience in drilling these types of formations in Cuba. We encountered significant gross intervals of moveable hydrocarbons in each of the three reservoirs we encountered, but they were often under higher pressure than we were expecting. Whilst generally a good thing, as it can be a predictor of good reservoir performance, the exploration well we designed had its contingencies thoroughly tested and as a result we were unable to collect clean samples of the oil that flowed at us or conduct tests to determine the performance characteristics of these reservoirs. The wells we have designed for the appraisal program beginning in the new year can handle the drilling conditions we now know we will encounter, plus our drilling team and their contractors have gained a lot of experience from the two wells they have drilled together in Cuba. Planning for the appraisal program also contemplates that the wells may be put on extended production tests. In that case, production will be held in tanks on site then trucked as necessary to the nearest oil battery some 50 kilometres away (as is currently the practice for other producing fields nearby). Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. No independent directors (3 non-independent directors). Non-Executive Technical Director & Non-Executive Director Peter Stickland was the last director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Announcement • Oct 28
Melbana Energy Limited Advises the Zapato-1 Exploration Well Being Drilled in Its Block 9 PSC Area Onshore Cuba Melbana Energy Limited advises that the Zapato-1 exploration well being drilled in its Block 9 PSC area onshore Cuba (Melbana 30%) has successfully reached the target total depth of 3,152 mMD. Wireline logging operations have been run and the collected data is being analysed. Drilling saw increased fracturing and a marked improvement in penetration rate in the last two hundred metres or so. Whilst this could be interpreted as a change in lithology, the well was still within the ophiolitic sequence at the target total depth and velocity data from the first logging run confirmed that the original reservoir target defined on seismic had been tested. The well will now be suspended so that the subsurface interpretation may be reviewed once all the new data sets have been incorporated. The rig is being demobilised and, upon completion of necessary maintenance and recertifications, will be sent back to the Alameda drill pad to commence appraisal of the significant volumes of moveable hydrocarbons encountered by the Alameda-1 well. Melbana will provide more information on this appraisal program and the 2023 work program in due course, for which it is fully funded. Announcement • Oct 17
Melbana Energy Limited Provides Zapato-1St Drilling Update Melbana Energy Limited reported that the Zapato-1 exploration well being drilled in its Block 9 PSC onshore Cuba (Melbana 30%) continues to drill ahead in hard volcanics, having reached a depth of 2,880 mMD earlier today. Based on interpretation of the available information, the well is now possibly immediately above the seismic reflector which represents the base of the ophiolite sequence. For the more technically inclined, the depth of the base of the ophiolitic sequence has been updated with the benefit of a synthetic log-based well to seismic tie derived from information gathered on the logging run of the previous section of Zapato-1. The greatest unknown presently in the interpretation is the velocity of the sequence. It has been demonstrated that the initial pre-drill velocity was much slower than the actual velocities of the sequence. A re-interpretation of the depth of the base of the ophiolites using the updated velocity estimates the base of the ophiolites at around 3000 mMD. However, with the velocities the company are experiencing, one seismic couplet represents approximately 150 metres of depth, giving a large margin of error for predictions of when the company might encounter the target formation. Whilst the velocity required to match the drilling result has changed, the initial seismic interpretation of the sequence has not changed. There is a confident seismic horizon tie with the Bolanos-1 well to the north-east, which reached total depth in Vega Alta shales, the interpreted top seal to the prospective A2 lead. Announcement • Oct 05
Melbana Energy Limited Provides Zapato-1ST Drilling Update Melbana Energy Limited provided this update on its drilling operations in the Block 9 contract area, onshore Cuba. The Zapato-1 exploration well continues to drill ahead in hard volcanics, having reached a depth of 2,700 mMD earlier today. Having now passed the predrill prognosis for the start of the target formation of about 2,650 mMD, reassessment of the input parameters based on this new variable have resulted in a revised estimate for the top of the target formation of about 2,800 mMD. Drilling operations were only minimally impacted by the passage of Hurricane Ian last week, due to the precautionary measures taken ahead of the hurricane making landfall in Cuba several hundredkilometres to the west of where drilling operations are currently taking place. Announcement • Sep 26
Melbana Energy Limited Provides Update on its Drilling Operations in the Block 9 Contract Area, Onshore Cuba Melbana Energy Limited provided this update on its drilling operations in the Block 9 contract area, onshore Cuba. The Zapato-1 exploration well continues to drill ahead in hard volcanics, having reached a depth of 2,642 mMD earlier 26 September 2022. The predrill prognosis for the start of the target formation of about 2,650 mMD remains the best estimate for when a change in lithology may occur. Announcement • Sep 15
Melbana Energy Limited Provides Zapato-1ST Drilling Update Melbana Energy Limited provided update on its drilling operations in the Block 9 contract area, onshore Cuba. Drilling has continued with only minor interruptions in the past week at a slow but satisfactory pace given the hardness of the formation. The predrill prognosis for the start of the target formation of about 2,650 mMD remains the best estimate for when a change in lithology may occur. Announcement • Sep 10
Melbana Energy Limited, Annual General Meeting, Nov 22, 2022 Melbana Energy Limited, Annual General Meeting, Nov 22, 2022. Announcement • Sep 01
Melbana Energy Limited Announces Update on Its Drilling Operations in the Block 9 Contract Area, Onshore Cuba Melbana Energy Limited announced update on its drilling operations in the Block 9 contract area, onshore Cuba. Operations in the past week invested time in ensuring the well bore was in good condition before the running of the 8-1/2" casing. The casing was successfully set at 2,298 mMD then cemented in place on the weekend, following which the BOP was configured and pressure tested. The cement plug is now almost drilled out preparations are underway for a leak off test. Once satisfactorily completed, drilling ahead in 8-1/2" hole should resume later 1 September 2022. Announcement • Aug 25
Melbana Energy Limited Provides Zapato-1ST Drilling Update Melbana Energy Limited provided this update on its drilling operations in the Block 9 contract area, onshore Cuba. Drilling ahead continued in the past week in hard rock. At about 2,300 m MD the bit was retrieved and a decision made to case the more than 1,000 metres of open hole. Several logging runs were then successfully conducted and drilling operations are now preparing the hole for the running then cementing of 9-5/8" casing. It is expected that drilling ahead in 8-1/2" should commence this weekend. The pre-drill prognosis for the primary objective was that it might begin at approximately 2,650 metres MD, although given the volcanics were encountered about 300 metres higher than expected it is considered possible that the target formation may also be encountered at a shallower depth. The thickness of the ophiolite formation have encountered is now also thicker than prognosed, however. Announcement • Aug 17
Melbana Energy Limited Provides Zapato-1ST Drilling Update Melbana Energy Limited provided this update on its drilling operations in the Block 9 contract area, onshore Cuba. The side-track hole is currently at 2,150 metres MD and still in the overburden. The pre-drill prognosis was for the target formation to possibly be intersected at approximately 2,650 metres MD, but reinterpretation of the subsurface based on information gained from drilling the well suggests it may be that it could be encountered some 300 metres higher. Some drilling time was lost in the past week whilst debris was recovered from the well bore following the failure of a drilling bit, but this has now been completed successfully and the new bit is drilling ahead at a satisfactory rate. Announcement • Aug 04
Melbana Energy Limited Provides Update on Its Drilling Operations in the Block 9 Contract Area, Onshore Cuba Melbana Energy Limited provided this update on its drilling operations in the Block 9 contract area, onshore Cuba. The side-track hole is currently at 1,942 metres MD and still in the overburden, as prognosed. Progress is considered satisfactory, given the conditions. The target formation is estimated to commence at approximately 2,650 metres MD, although given the volcanics were encountered about 300 metres higher than expected it is now considered possible that the target formation may also be encountered at a shallower depth. Announcement • Jul 27
Melbana Energy Limited Provides Update on its Drilling Operations in the Block 9 Contract Area, Onshore Cuba Melbana Energy Limited provided this update on its drilling operations in the Block 9 contract area, onshore Cuba. Following a successful commencement of a side-track from the existing drilled hole, drilling performance has been pleasing and site operations are proceeding according to expectations. The side-track hole is currently at 1,622 metres MD and still in hard volcanics, as prognosed. Based on current drilling rates it is hoped that the side-track will reach or exceed the previous depth achieved of circa 1,700 metres MD before the end of the week. Announcement • Jul 18
Melbana Energy Limited Provides Zapato-1 Drilling Update Melbana Energy Limited provided this update on its drilling operations in its Block 9 contract area onshore Cuba. After reaching the previously announced depth of 1666 metres and logging the open hole, the 11-3/4" liner was successfully run and cemented over the 14" diameter hole section to a depth of 1243 metres. After cleaning out the hole, drilling continued within the ophiolite overburden section to a depth of 1698 metres at which point the drill string became stuck. While attempting to retrieve the drill string, free oil was observed on the shakers at surface which is most encouraging. The decision was made to sever the string above the stuck point at 1507 metres and recover the remaining drill pipe. Following this operation, a cement plug was set with the top at 1252.5 metres. Operations have now commenced to initiate a side-track and continue drilling to the main carbonate target below the ophiolite. Announcement • Jun 29
Melbana Energy Limited Announces Zapato-1 Drilling Update Melbana Energy Limited provided this update on activities in its Block 9 contract area, onshore Cuba (Melbana's working interest 30%). Drilling operations have continued since last update, with the Zapato-1 exploration well now having reached a depth of 1,666 metres in 12-1/4" diameter hole. The expected ophiolitic formation has been encountered higher than prognosis. Given the low rate of penetration, the 12-1/4" x 14" underreamer was removed from the bottom hole assembly (BHA) when the 14" diameter hole had reached 1,251 metres. Drilling was then continued with stabilized 12-1/4" BHA to the current depth and wiper trips were made to clean and condition the hole prior to the running and setting of the 11-3/4" liner within the 14" hole section to secure this open hole. At the present time, the 11-3/4" liner has been run to 1,240 metres and, once set and cemented in place, the plan is to drill-out the shoe and continue drilling in the ophiolitic formation from 1,666m with a 10-5/8" BHA. Announcement • Jun 16
Melbana Energy Limited Provides Update on Activities in Its Block 9 Contract Area, Onshore Cuba (Melbana's Working Interest 30%) Melbana Energy Limited provided this update on activities in its Block 9 contract area, onshore Cuba (Melbana's working interest 30%). Drilling has reached a depth of 1,482 metres. Drilling progress has slowed, as predicted but higher than prognoses, due to the hardness of the formations now being encountered. The selected drill bits have been making steady progress with bit changes being introduced as warranted. he heavy rainfall has abated and resulted in only minimal interruption to operations. Announcement • Jun 07
Melbana Energy Limited Provides Zapato-1 Drilling Update Melbana Energy Limited provided update on activities in its Block 9 contract area, onshore Cuba (Melbana's working interest 30%). Drilling has reached a depth of 1,233 metres. The performance of the rig and the rate of penetrationto date have been according to plan. Heavy rainfall has been experienced in the vicinity of the drill site, but this has not interfered with drilling operations to date. Announcement • Jun 02
Melbana Energy Limited Provides Update on Activities in Its Block 9 Contract Area Melbana Energy Limited provided this update on activities in its Block 9 contract area, onshore Cuba (Melbana's working interest 30%). Zapato-1 exploration well: Surface casing has been set at 459 metres and the BOP subsequently pressure tested. Cement was drilled out a few metres and mud displaced for a leak off test, following the satisfactory completion of which mud volume was built up and drilling ahead resumed, reaching 586 metres a short time ago. The Zapato-1 well shall test a target with a Prospective Resource (Best Estimate) of 95 million barrels of oil. The company's assessment is that the large Zapato structure (with nearly 1,000 metres of vertical relief estimated to begin at about 2,650 metres) may be the primary structure, and thus the source of oil, for the shallow Motembo oil field discovered in the late 19th century that reportedly contained a very light oil (50 - 64.5º API) present at surface. Announcement • May 23
Melbana Energy Limited Updates on Two Well Exploration Drilling Program in Block 9 Contract Area, Onshore Cuba Melbana Energy Limited provided this update on its two well exploration drilling program in its Block 9 contract area, onshore Cuba (Melbana's working interest 30%). The drilling of the Zapato-1 exploration well commenced (spudded) at 12:00 noon Saturday, Cuban time. The Zapato-1 well shall test a target with a Prospective Resource (Best Estimate) of 95 million barrels of oil. Melbana's assessment is that the large Zapato structure (with nearly 1,000 metres of vertical relief) may be the primary structure, and thus the source of oil, for the shallow Motembo oil field discovered in the late 19th century that reportedly contained a very light oil (50 - 64.5º API) present at surface. Recent Insider Transactions • May 21
Board Member recently sold AU$364k worth of stock On the 17th of May, Peter Stickland sold around 4m shares on-market at roughly AU$0.098 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of AU$243k more than they bought in the last 12 months. Announcement • May 13
Melbana Energy Limited Provides Update on its Preparations for Drilling the Zapato-1 Exploration Well in its Block 9 Contract Area Onshore Cuba Melbana Energy Limited provided this update on its preparations for drilling the Zapato-1 exploration well in its Block 9 contract area onshore Cuba (Melbana's working interest 30%). The drill pad and access roads to support the Zapato-1 exploration well are complete, as are ancillary infrastructure such as pits and water wells. The drill rig and most of its related equipment are now on site and preparations are being made for mast erection. Erection of the camp for site personnel is advanced with key personnel already staying on site. Full camp services are expected to be available as early as this weekend. Commencement of drilling operations are on schedule to commence during the last week of May 2022. The objective of the Zapato-1 exploration well is to locate the source of the historic Motembo oil field - Cuba's oldest oil field that reportedly contained a very light oil (50 - 64.5º API) present at surface. The structure Melbana is targeting with Zapato-1 was identified by studying well and seismic data along with the results of a gravity and magnetic study Melbana commissioned over the Zapato prospect. These data indicated a strong gravity and magnetic alignment with a structural interpretation made by Melbana's technical team derived from seismic and surface data. Melbana's assessment is that the large Zapato structure (with nearly 1,000 metres of vertical relief) may be the primary structure, and thus the source of oil, for the shallow Motembo oil field discovered in the late 19th century. There are no previous wells that have drilled deep enough to intercept the Zapato structure. Recent Insider Transactions • May 06
Executive Chairman of the Board recently bought AU$100k worth of stock On the 3rd of May, Andrew Purcell bought around 1m shares on-market at roughly AU$0.09 per share. This was the largest purchase by an insider in the last 3 months. This was Andrew's only on-market trade for the last 12 months. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. No independent directors (3 non-independent directors). Non-Executive Technical Director & Director Peter Stickland was the last director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Announcement • Apr 13
Melbana Energy Limited Provides Alameda-1 Drilling Update Melbana Energy Limited provided this update on its drilling operations in its Block 9 contract area, onshore Cuba (Melbana's working interest 30%). Total depth for the Alameda-1 well was called at 3,916 mMD /3,694 mTVD due to the significant and highly pressured influx of oil and gas into the well bore at that depth. Mud weight was subsequently built up to bring the well under control, following which most of the roughly 300 mMD section that had been drilled to that point in the Marti structure was filled with cement to isolate this high-pressure zone. The plan was to then drill a short side track starting above this cement plug so that oil samples could be taken from this shallower (hence, slightly lower pressured) section of the significant oil interval encountered in the Marti structure. Before drilling of the side track could commence, oil once again started to flow into the well bore; probably due the reservoir pressure previously encountered at total depth exceeding the strength of the ~250 metre cement plug that had been put in place. Control of the deepest part of the Marti interval will now be established by setting a liner below the shoe of the previous section and cementing it in place. The forward plan is to now sample the most prospective intervals of the (immediately higher) Alameda structure (which were left open for this purpose) before moving the rig to commence the drilling of Zapato-1. Announcement • Mar 29
Melbana Energy Limited Provides Alameda-1 Drilling Update Melbana Energy Limited reported that logging operations in the Marti structure of its Block 9 contract area, onshore Cuba (Melbana's working interest 30%), have concluded. The Marti structure is the updated interpretation of the subsurface environment and was the lowest and largest primary predrill target (and was previously known as the "I" structure) for the Alameda-1 well, the first of two exploration wells planned for Block 9. Logs were acquired over 276 mMD of the Marti objective, however logs were not able to be acquired over the bottom 16 mMD, where the strongest influx of hydrocarbons was encountered. The quality of the data gathered was good and analysis is now underway. Data acquisition took longer than expected due to well control considerations during the logging program. At total depth there was some evidence of formation water returned with the oil during logging operations, even though no water had been encountered whilst drilling. There are several reasons why this may be the case, but the lowest oil indications in Alameda-1 are in any case more than 500 metres below the crest of the Marti structure on the pre-drill mapping. Continuous excellent oil shows were encountered over the entire gross interval of almost 300 mMD /245 mTVD whilst drilling the Marti structure. Work has now commenced on preparations for flow testing this interval. The high pressure encountered at the bottom of the Marti structure necessitated the calling of total depth on the Alameda-1 well 3 at 3,916 mMD /3,694 mTVD. It is therefore similarly considered prudent to conduct flow testing a little above this zone. As such, the interval drilled in the Marti structure will be plugged and a short side-track well drilled to about 50 mMD higher than current total depth. Flow testing of the Marti section in the side-track well is therefore currently projected to commence about mid-April. Announcement • Mar 10
Melbana Energy Limited Provides Update on its Drilling Operations in its Block 9 Contract Area Onshore Cuba Melbana Energy Limited provided this update on its drilling operations in its Block 9 contract area onshore Cuba. Drilling of the 6" hole section progressed to 3,769 mMD when it paused after encountering a high pressure zone resulting in an influx of hydrocarbons into the wellbore and subsequent strong oil shows on the shakers. The hydrocarbons are being managed by circulating through the choke and mud degasser and then flared. Drilling ahead will continue once the mud system has been weighted up to approximately 1.88sg the weight necessary to maintain well control while drilling ahead. Announcement • Mar 04
Melbana Energy Limited Announces Alameda-1: Strong Oil and Gas Shows Encountered Within the I Structure Melbana Energy Limited provided this update on its drilling operations in its Block 9 contract area onshore Cuba. Drilling of the 6" hole section has commenced after successfully setting the 7" liner at 3624mMD and is currently at a depth 3727mMD within the upper portion of the second Primary Target, referred to as the I Sheet. Limestones encountered within the 103mMD (95mTVD) gross interval penetrated so far continue to have strong oil shows with free oil and gas again being encountered at surface within the drilling mud system. Drilling will continue through the target interval after which a suite of wireline logs will be run at total depth (expected at approximately 4000mMD) to evaluate the shows. Announcement • Feb 22
Melbana Energy Limited Updates on Its Drilling Operations in Its Block 9 Contract Area Onshore Cuba Melbana Energy Limited provided this update on its drilling operations in its Block 9 contract area onshore Cuba. Logging of the 8-1/2 hole section has been successfully completed. Melbana's geoscientists and consultants are now conducting a detailed analysis of the data obtained, a preliminary review of which indicate several porous zones which are naturally fractured. Drilling operations are expected to resume by the end of this week, subject to the satisfactory completion of well integrity and control tests. Planning is progressing for the flow testing of the Alameda interval (if warranted) and the N interval at the conclusion of drilling of Alameda-1. Announcement • Feb 16
Melbana Energy Limited Announces Forward Work Program for Block 9 Drilling Program Update Melbana Energy Limited announced update on its drilling operations in its Block 9 contract area onshore Cuba. An initial set of logs have been successfully conducted from 3,617mMD back to the 9-5/8" shoe at 2,577mMD. A final logging run that aims to conduct a formation pressure test over this interval (that may yield additional information that would assist with the design of testing operations and the running/cementing of casing) is currently underway and expected to conclude in the next day or so. Following the completion of logging operations in the N structure, the oil interval encountered there will be isolated by running and setting a 7" liner to ~3,625mMD. External casing packers (ECP) will be an integral part of the 7" liner, thus allowing later testing of the N interval. Once the 7" liner shoe has been pressure tested, drilling ahead in the 6" hole towards the Alameda structure will commence. The prognosed top of the Alameda structure could be as high as at 3,700mMD (3,500mTVD), but Alameda-1's well design affords the possibility of drilling on past this depth should the joint operation partners elect to do so. The Alameda-1 exploration well has thus far identified two significant intervals of potential oil and gas pay, which are proposed to be tested in the following manner and sequence. The preliminary evaluation of the first interval that occurred in the Upper Sheet indicated a potential net oil and gas of at least 48m across 11 zones within a 415m gross section1. The second interval occurred in the N structure just drilled, indicating a potential gross reservoir interval of possibly as much as 500mMD (450mTVD)2 subject to the results of the logging run currently being undertaken. Once the Alameda-1 exploration well has reached its total depth the following actions will be taken: 1. Run logs over the interval of the Alameda structure; 2. Flow test any oil interval that may be encountered in the Alameda Structure (if applicable and if warranted); and, 3. Flow test the oil interval in the N Structure. The testing of the oil interval in the Upper Sheet would require a new shallow appraisal well to be drilled, potentially from the Alameda-1 well pad. Planning and design work for this appraisal well is advanced in case the joint operation partners wish to drill this well immediately following the conclusion of the Zapato-1 exploration well. A decision on when to test this interval in the Upper Sheet will likely be influenced by the results of the prior flow test in the N Structure (and, the company hope, possibly also the Alameda and Zapato Structures) as well as by the completion of the resource assessment of oil contained in the Upper Sheet which is well advanced. Announcement • Feb 07
Melbana Energy Limited Provides Drilling Update At Alameda-1 Melbana Energy Limited provided this update on its drilling operations at its Alameda-1 exploration well in its Block 9 contract area onshore Cuba. Overnight drilling reached a depth of approximately 3,590mMD (3420mTVD), at which point a lithology change was detected, potentially signifying the bottom of the reservoir. As a result, the decision has been made to call total depth for the current 8½" section (N structure) to preserve the oil already found in this section. The interval just drilled commenced at approximately 3,077mMD (2970mTVD), indicating a potential gross reservoir interval of possibly as much as 500mMD (450mTVD). The gas behaviour in this interval was better than anticipated and there have been significant oil shows present throughout on the shale shakers and in cuttings samples. Drilling of this section commenced with a mud weight of 1.54sg and had to increase up to 1.73sg to maintain well control. Preparations are now underway to log the section just drilled, which should give a better understanding of the hydrocarbons that have been encountered. Following the completion of logging of this section the 7" liner will be set before drilling ahead into the deeper zone with a 6" hole to test the Alameda structure - the second and large primary target for this exploration well. Announcement • Feb 02
Melbana Energy Limited provides Update on Its Drilling Operations At Its Alameda-1 Exploration Well Melbana Energy Limited to provide this update on its drilling operations at its Alameda-1 exploration well in its Block 9 contract area onshore Cuba. The Alameda-1 8-1/2 hole section has now been drilled through the Vega Alta seal and is currently at a depth of 3,200m within the first of the Primary Targets referred to as the N Sheet. Strong oils shows have been recorded from limestones within the unit. Free oil has been observed within the mud system at surface along with elevated mud gas readings and associated hydrocarbon fluorescence of up to 95%. The high quality shows have been recorded from 3,055 to 3,200mMD to date (over a gross interval of 145m) to date which also contains zones with good indications of fracturing (that is likely to provide enhanced deliverability from the reservoir). There was also fluorescence (but not as high gas) starting at 2,900m with some oil in samples and on shakers from 2,950mMD. After completing a wiper trip, drilling is now continuing through the N Sheet toward the prognosed base of the interval expected at ~3,400m. Further information will become available once wireline logs have been acquired over the interval and interpreted. Announcement • Jan 27
Melbana Energy Limited Provides Update on Drilling Operations At its Alameda-1 Exploration Well in its Block 9 Contract Area Onshore Cuba Melbana Energy Limited provided this update on its drilling operations at its Alameda-1 exploration well in its Block 9 contract area onshore Cuba. After running the 9-5/8" casing and cementing it in place at the base of the upper sheet limestones, the 8-1/2" hole section was commenced and has drilled through a thick interval of Vega Alta Formation, dominated by claystone, serpentinite and limestone to a current depth of 2,971 mMD. This unit is interpreted to be the main top seal for potential hydrocarbons trapped in the limestone reservoir section below it. It is correlated to a similar unit in the adjacent Marti-5 well, below which significant oil shows and hydrocarbon recoveries werereported. The unit is prognosed to be the top seal for each of the primary targets in Alameda-1 where it is expected to be repeated by thrust faults. A managed pressure system has been tested and installed at the wellsite to enable close management of downhole pressures while drilling the main targets and will facilitate the use of lighter mudweights through the prospective reservoir sections. Announcement • Jan 19
Melbana Energy Limited Provides Update on Drilling Operations At Alameda-1 Exploration Well in Block 9 Contract Area Onshore Cuba Melbana Energy Limited provided this update on drilling operations at its Alameda-1 exploration well in its Block 9 contract area onshore Cuba. The 9-5/8" casing string has been set in place and successfully pressure tested, allowing for the installation of the 11" 10kpsi BOP required to safely drill to the primary target zones. Drilling ahead recommenced overnight (Australian time). A short time ago the well had been drilled to 2,622mMD. It is prognosed that the next target, the primary structure called "N", may start at ~3,000 mMD. There has been insufficient time drilling the current section to make an accurate forecast as to when this depth may be reached, but if early indications on rate of penetration can be maintained it may occur next week. The deepest (and largest) primary structure, called Alameda, is prognosed to start at~3,600mMD. The revised forecast for the completion of the Alameda-1 well is the end of February. The rig will then be transferred to the next well site for the drilling of the Zapato-1 well. Melbana's Executive Chairman, Andrew Purcell, has recently arrived in Cuba to review operations and agree the forward operations plan with the company's partner and regulators. The findings and results of this trip will be provided to the market, along with Melbana's updated resource assessment following the oil shows it encountered in the Upper Sheet, upon his return early next month. Announcement • Jan 12
Melbana Energy Provides an Update on Drilling Operations at Its Alameda-1 Exploration Well in Its Block 9 Contract Area Onshore Cuba Melbana Energy Limited provided this update on drilling operations at its Alameda-1 exploration well in its Block 9 contract area onshore Cuba. Upon reaching a depth of 2,592m measured depth (MD) the decision was made to stop drilling that section, run logs and install casing. A complete suite of wireline logs was successfully acquired and are currently being analysed. The data should yield some useful structural dip and orientation data to help the geological interpretation. Biostratigraphy work is also being conducted from samples recovered from the section to further refine the stratigraphic sections intersected to date. 9-5/8" casing is now being run to bottom (currently at ~2,070mMD). Forward program is to complete running casing to Section TD, cement and pressure test the casing then drill ahead. The next target is the primary structure called "N", which is forecast to be encountered starting at ~3,000 mMD, followed by the deepest (and largest) primary structure called "Alameda", (top expected at ~3,600 mMD). Announcement • Jan 05
Melbana Energy Limited Provides Drilling Update At Alameda-1 Melbana Energy Limited reports that drilling operations at its Alameda-1 exploration well in its Block 9 contract area onshore Cuba have been continuous over the Christmas/New year period. Upon reaching a depth of 2,500 mMD the drilling plan called for the installation of the 10kpsi BOP,consistent with conservative industry recommended practice. Given the stable conditions experienced down hole to that point, it was decided to review the ongoing activities as there was a risk that they could not be completed consistent with best practice for well control. With the agreement of the drilling contractor, the drilling plan was amended to drill ahead and set the 9-5/8" casing string at approx. 2,700 mMD before swapping to the 10kpsi BOP to continue to maintain best practice standards as progress to well TD. A short while ago the well had reached 2,511 mMD. Announcement • Dec 23
Melbana Energy Limited Reports Drilling Ahead At Alameda-1 Melbana Energy Limited reported drilling ahead at Alameda-1 recommenced on 16 December 2021 with a directional bottom hole assembly. As of a short while ago, a depth of 2,093 mMD had been safely reached. During the standby period, the rig mud system has been cleaned and fluids inventory conditioned to requisite density to safely drill ahead. The 5000 psi BOP system was successfully pressure tested and will remain in place to safely extend the 12-1/4" diameter hole section as far as practicable. Drilling rig and service Contractors have cooperated and supported Melbana by adjusting their commitments during the standby period. All contractors have personnel and procedures in-place to meet the recommenced drilling schedule. Consumables critical to recommencing and enabling continuity of drilling operations were sourced and imported into Cuba by Melbana, using both regular and non-commercial logistics supply resources. The preparatory work to enable drill ahead has also been undertaken over the last week with the drill out of the temporary cement suspension plugs, reconditioning of the mud system for cement contamination and conducting a formation integrity test to a satisfactory level at the 11-3/4" liner shoe. The well is currently within limestones of the upper sheet, between the shallower secondary objective already drilled (and successfully confirming the presence of oil) and the deeper primary N and Alameda structure targets still to be penetrated. Announcement • Dec 12
Melbana Energy Limited Provides Update on Cuban Drilling Operations Melbana Energy Limited reported it received last week the first deliveries of the consumable drilling supplies needed to resume drilling operations. Drilling ahead will restart once all preparatory work (including weighting up the mud system, installation of 10kpsi BOP system, drill-out of the suspension plug, formation integrity test etc.) has been satisfactorily completed, currently projected to be about the end of next week. Additional supplies of drilling materials are due to arrive in Cuba on or about 20 December 2021. These additional supplies are currently estimated to be sufficient to complete the drilling of the Alameda-1 well. The consumable supplies required to complete in-country inventory for drilling the Zapato-1 well have been reviewed considering international supply chain logistic constraints and contingency shortfalls are being actioned accordingly. Melbana's operations team has also now been supplemented with several external experts familiar with the specific drilling conditions that have been encountered to date. Their contributions and insights have been well received and forward operational planning amended accordingly, as appropriate. Civil works for the Zapato-1 well pad are now complete, with works there now focussed on improving access roads before then turning to the testing of nearby water wells to ensure they can supply an adequate volume of water at the required rate for when drilling operations commence there following the completion of the Alameda-1 well.COVD-19 infections rates have reduced materially in Cuba in recent months, but Melbana continues to operate strict prevention and testing protocols at the well site. Announcement • Nov 27
Melbana Energy Limited Announces Status Update of Alameda-1 Drilling Operations Melbana Energy Limited reported that it has begun preparing for the resumption of drilling operations at its Alameda-1 well in its Block 9 area, onshore Cuba. As last reported 1, Melbana elected to shut in the Alameda-1 well at about 1,892 metres. This was due to encountering a high pressure zone some 350 metres shallower than predicted which, when taken with delays to the scheduled supply of mud materials (an important component of the management of these increased pressures), made the shut-in the appropriate and conservative course of action. Sufficient supplies of mud and other materials have now been secured, the first shipment of which will arrive in Cuba this 29 November. Melbana's operations team has used this time to conduct necessary maintenance on the rig and to recondition the in situ mud materials. In addition to the improvements to the rig capabilities that Melbana has already implemented to better manage these drilling conditions, additional managed pressured drilling capabilities will now be added to the rig to reduce response times to any future significant increases in pore pressure. Announcement • Sep 27
Melbana Energy Limited Reports the Update on the Progress of the Alameda-1 Exploration Well Being Drilling in Block 9 PSC, Onshore Cuba Melbana Energy Limited reported the update on the progress of the Alameda-1 exploration well being drilling in Block 9 PSC, onshore Cuba. Melbana has a 30% interest in Block 9 and is the operator of the current drilling program. Encouraging hydrocarbon shows have been encountered from soon after the first casing point at 454 metres, when moveable oil was reported at surface within the mud and cuttings samples. The oil was accompanied by elevated gas readings. Drilling continued through the shallow limestones with similar shows persisting over a gross interval of about 578 metres with so far, with oil still on the shakers at the current depth of 1,047 metres. The oil appears to be lighter than that normally seen at this depth, supporting Melbana's model of drilling in areas where higher source maturity may be expected. At this stage, the significance of these substantial shows is uncertain but they will be further evaluated when logs become available at the conclusion of the current hole section. Samples of the oil have been taken and submitted for further analysis. However, as the main targets are still below the current depth of the well, any further evaluation of deliverability and lateral extent of this new potential oil zone won't be considered until after the conclusion of drilling. Announcement • Sep 21
Melbana Energy Limited Provides Alameda-1 Drilling Update Melbana Energy Limited reported that the Alameda-1 exploration well has made good progress to date after spudding at 09:00 hrs (Cuba time) on September 13. The well has reached its first planned casing point at a depth of 457 metres, after drilling without incident or significant disruptions through the shallow section. Consistent with offset wells, minor residual oil shows were observed in cuttings through the interval within interbedded limestones and sandstones. The shallowest of the three prospective intervals in Alameda-1 is anticipated at approximately 800 metres measured depth. 13-3/8" casing has been successfully run to 453.6 metres and is currently being cemented in place. Drilling of the 12-1/4"x14" hole section will commence over the coming days after the blow out preventer stack has been installed and successfully pressure tested. Announcement • Sep 15
Melbana Energy Limited Announces Alameda-1 Well Spuds Melbana Energy Limited reported that the Alameda-1 exploration well spudded (commenced drilling) on morning, 13 September 2021, Cuban time. The Alameda-1 well shall test three separate targets with a combined prospective resource (best estimate) of 141 million barrels of oil1. Conditions at site are good and an additional 14 containers of contractor materials and equipment arrived at port on schedule on 13 September and are in the process of clearing customs and being transported to site. Additional Melbana personnel have also now arrived in country to supplement the capabilities of the project management team. Announcement • Jul 15
Melbana Energy Limited Provides Block 9, Cuba Operations Update Melbana Energy Limited provided this update on progress made towards the drilling of its two high impact exploration wells onshore Cuba in its Block 9 contract area ("Block 9 PSC"). Melbana has a 30% interest in the 236 million barrels of Prospective Resource (Best Estimate) being tested in this drilling program projected to start in September 2021. Under the terms of its agreement with Sonangol 1, Melbana is required to fund half of the 30% interest it has in this drilling program, the cost of which is largely covered by the approximately $5 million it received upfront as compensation for previous expenditure incurred. Melbana is also operator of the drilling program. Preparations for the two well drilling program in Block 9, Cuba, are moving ahead rapidly as the
Company prepares for the imminent spud of the first well, Alameda-1, in September 2021.
Parts and materials required for this drilling program started to arrive in Cuba late last week with additional shipments scheduled to arrive this week and then regularly going forward with all items scheduled to arrive before the start of drilling operations. The Company has to date satisfactorily managed multiple challenges to delivery timetables as a result of the impact of COVID-19 on shipping and air freight, however all the requisite parts and materials have now been sourced and arrangements made for their delivery. Announcement • Feb 08
Melbana Energy Limited Provides Block 9 Cuba Operations Update Melbana Energy Limited provided this update on progress made towards the drilling of its two high impact exploration wells onshore Cuba in its Block 9 contract area. Melbana has a 30% interest in the 236 million barrels of Prospective Resource (Best Estimate)1 being tested in this drilling program projected to start mid-year. Contracts have been signed for the manufacture and supply of the steel pipe required to drill both wells in this campaign. The availability of these items lie on the critical path to the commencement of drilling so this is an important milestone and one that begins the countdown to testing the potential of the target prospects in Block 9. Contracts for the supply of other key items of inventory are being finalised and expected to be signed shortly. There has been considerable upward pressure on prices and shipping times for the supply of key inventory items over the past few months, but these have not had a material impact on either the drilling budget or the supply lead times due to the efforts of Melbana's preferred supplier to remain as close as possible to their original terms. Melbana is now preparing to deploy the first member of its expatriate project management team to Cuba to prepare for the commencement of drilling operations. Cuba work visas for these people have been received and the Drilling Manager is expected to arrive in Cuba in the next month. Several senior members of Sonangol's technical team will also form part of the project management team and will relocate to Cuba as required over the coming months. Melbana's Cuban personnel will continue to manage local administrative requirements, regulatory and community liaison and other important local issues associated with this drilling program. Announcement • Sep 24
Melbana Provides Update on Cuba Block 9 Drilling Program Melbana Energy Limited has received its first payment from Sonangol in the amount of EUR425,000, pursuant to the Farm-in Agreement executed last month. This payment is an advance against Melbana's Past Costs for Block 9 PSC of ~AUD 5 million, the balance of which becomes payable following Sonangol's interest in Block 9 PSC being formally recognised by CUPET – the National Oil Company of Cuba. CUPET has informally advised this transaction has been approved and is working towards completing formal documentation. Melbana, as Operator, is advanced in its planning to drill two wells in Block 9, onshore Cuba. It expects to soon a) confirm design details of the drilling program, b) formally engage its preferred drilling contractor and service providers, c) order long lead items and, d) establish an in-country project management team (some members of which will be personnel from Sonangol experienced in drilling operations). Once these tasks have been completed, application will be made for approval to commence drilling the first well. This is largely procedural to confirm that a) all necessary permits have been received, b) the operator is ready to commence drilling and, c) the drilling equipment is within the parameters approved in the environmental and other related permits. Drilling operations are currently forecast to commence in Fourth Quarter 2020, subject to currently unknown timing and movement implications due to COVID-19 management practices that Cuba and other relevant countries may continue to employ in the months ahead. Certain inventory and equipment will be needed to be imported into Cuba but shipping schedules have been reportedly relatively unaffected by quarantine measures. Personnel, Melbana's and those of the drilling contractor and other service providers, are already largely present in Cuba and therefore not significantly affected by restrictions on international travel. Senior members of the project management team will need totravel to Cuba prior to the commencement of drilling operations, however, and it is currently not known when this will possible or what protocols will need to be followed. A contingency has been built into the drilling program to allow for this uncertainty. Announcement • Aug 29
Melbana Energy Limited Auditor Raises 'Going Concern' Doubt Melbana Energy Limited filed its Annual on Aug 26, 2020 for the period ending Jun 30, 2020. In this report its auditor, Grant Thornton, gave an unqualified opinion expressing doubt that the company can continue as a going concern. 