Directors’ Report The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the ‘Consolidated Entity’) consisting of Melbana Energy Limited (referred to hereafter as ‘Melbana’, the ‘Company’ or ‘parent entity’) and the entities it controlled at the end of, or during, the year ended 30 June 2023. Directors The following persons were Directors of Melbana Energy Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Andrew Purcell (Executive Chairman) Michael Sandy (Non-Executive Director) Peter Stickland (Non-Executive Director) Principal activities The principal activities of the Consolidated Entity during the year were oil and gas exploration in Cuba and Australia together with development concepts for the Tassie Shoal Methanol and LNG Project. Dividends There were no dividends paid or declared during the current or previous financial year. Review of operations International Operations Cuba - Block 9 (Melbana 30%) The Alameda-1 exploration well, completed during the prior reporting period, encountered three geologically independent formations each containing moveable hydrocarbons (accompanied at times by significant formation pressures). These formations (designated Amistad, Alameda and Marti from shallowest to deepest - see Figure 2 on page 13) had a predrill combined Prospective Resource (Best Estimate, 100% basis)1 of 141 million barrels of oil. During the reporting period and using the data gathered by Alameda-1, an independent expert estimated the volumes within these formations to be 5.0 billion barrels of oil in place with a Prospective Resource of 267 million barrels of oil (Best Estimate, 100% basis)1 – a 90% increase to the Company’s predrill estimate. It is noteworthy that the latter estimate was informed by actual drilling of the formations which encountered oil and gas shows and flows confirmed by electric logging whereas the predrill estimate was based on desktop work only yet both estimates are characterised as prospective resources due to ASX and industry guidelines. The figures in Table 1 are therefore more derisked than the predrill estimates. Following these results, planning commenced to drill an appraisal well to test the oil quality and reservoir characteristics of each of the three formations. Table 1 – Independently estimated Prospective Resources following completion of Alameda-1 Gross (100%) Unrisked Prospective Resources1 (MMbbl) Zone Low (1U) Best (2U) Mean High (3U) Amistad 30 88 119 240 Alameda 34 109 148 297 Marti 21 70 95 197 Total 85 267 362 734 1 This estimate should be read with reference to the footnote “Notes regarding Contingent and Prospective resource estimates” on page 34 12 Melbana Energy Limited Annual Report 2023
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