7 Melbana Energy Limited Annual Report 2023 Highlights Australia Cuba – During the period, Melbana’s application for a suspension and extension of its 100%-owned AC/ P70 exploration permit was approved by the National Offshore Petroleum Titles Administrator. – The agreement extends the primary term, during which the drilling of one exploration well must take place, by 2.5 years to August 2027. Located offshore northern Australia, the project remains an attractive opportunity for Melbana to leverage its expertise with modern exploration technologies to unlock potential value at AC/P70, where an appraisal well in 2007 identified a gas cap. – Melbana also advanced its two fully-owned Petroleum Exploration Permits, NT/P87 and WA-544-P, (both located offshore northern Australia) where it carried out initial studies to reprocess and reinterpret legacy 2D seismic data. – Post balance-date, Melbana announced it had identified a new conceptual target within these permit areas. The Company has now commenced a process to farmout some of its 100% interest in the permit areas to fund the acquisition of a 3D seismic survey which will further de-risk the project. Strong execution on a detailed planning works program led to the successful commencement of the Alameda-2 well appraisal program. The program was designed to further assess the oil quality and reservoir characteristics of the three formations containing moveable hydrocarbons encountered by the Alameda-1 program (6.4 billion barrels of oil in place for a Prospective Resource of 362 million barrels of oil). – The defined objectives of the Alameda-2 program were to recover oil to surface from each of the three units of the Amistad reservoir; evaluate the quality of the recovered oil to assess production characteristics of each reservoirs and increase the overall reported net oil and gas pay estimate. – Flow testing operations for Unit 1A were successfully completed during the period; a total volume of 40 barrels of oil were recovered at surface and samples sent for laboratory analysis. – Post balance-date, flow testing for Unit 1B was completed which confirmed the presence of moveable that was oil considerably lighter than that observed in Unit 1A. The fluid produced to surface was close to 100% oil with almost zero comingled water. – As at the date of this report, further laboratory testing of the oil’s properties is in progress to better understand its commercial and production characteristics. To-date, over 1,000 barrels of oil have flowed naturally to surface during the testing program. – The Unit 1B section has now been completed for future production. The field development plan for Block 9 is now being reviewed, given the 1B results support the management team’s decision to investigate accelerated production pathways earlier than previously planned. – 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. Extensions at key exploration sites Advanced Exploration at Block 9
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