23 Commitments (continued) Cuba Block 9 (Melbana 30%) In September 2015, Melbana executed the Block 9 Production Sharing Contract (PSC) with the national oil company of Cuba, Cuba Petróleo Union (CUPET). The exploration period of the Block 9 PSC is split into four sub-periods with withdrawal options at the end of each sub-period. On 23 December 2019, the Consolidated Entity signed a binding heads of agreement (HOA) with Sonangol E.P. (Sonangol) for it to acquire a 70% Participating Interest in the Block 9 PSC in Cuba. As part of the HOA, on 25May 2020, the Consolidated Entity entered into a Farm-in Agreement (FIA) with Sonangol. The FIA details the commercial arrangement and responsibilities for the drilling of two exploration wells in Block 9. On 17 August 2020, the Company announced that formal Cuban regulatory approvals had been received for Sonangol to acquire a 70% interest in Block 9 PSC. Drilling of the first of two exploration wells in Block 9 commenced in September 2021 with the Alameda-1 well, with the Company as operator. This exploration well encountered three significant and geologically independent structures containing moveable hydrocarbons that independent expert McDaniel & Associates have estimated contain 6.4 billion barrels of oil in place with a Prospective Resource of 362 million barrels of oil (both volumes expressed on a 100% share, unrisked mean estimate basis)1. The second exploration well, Zapato-1, commenced drilling inMay 2022. As at the date of this report it has reached a depth of 2,354 metres measured depth and is drilling ahead to the target formation, which the pre-drill prognosis estimated may commence at about 2,650metres measured depth. For the current exploration subperiod of Block 9, the remaining committed activity is the drilling of one exploration well which the Company believes should be satisfied by the drilling of the Zapato-1 well currently in progress. There are no material commitments or contingencies other than as set out in this note. 24 Related party transactions Parent entity Melbana Energy Limited is the parent entity. Subsidiaries Interests in subsidiaries are set out in Note 26. Key management personnel Disclosures relating to key management personnel are set out in Note 21 and the remuneration report included in the Directors’ report. Transactions with related parties None. The following transactions occurred with related parties: 30-June-22 $ 30-June-21 $ Payments for consulting services* 32,375 40,625 32,375 40,625 * P ayments for consulting services represent the payments made to Springhead PetroleumPty Ltd, an entity associated withMr Peter Stickland and Sandy Associates, an entity associated withMr Michael Sandy, both directors of the Company. Notes to the Consolidated Financial Statements for the year ended 30 June 2022 46 Melbana Energy Limited Annual Report 2022
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