Cuba Block – 9 (Melbana 30%) The northern coast of Cuba is a prolific oil province. We’re constantly reminded of the fact every time we drive the Via Blanca between Havana and Varadero but it’s not just the sight of wellheads, nodding donkeys and tank farms (See Figure 1). On occasions we’ve stopped by the road and noted the natural and live oil seeps around some of the old oilfields on the coast and this is why at least some of these shallow oilfields were originally drilled and discovered. Figure 1 - Matanzas Supertanker Base We also see natural oil seeps within Block 9, some of which were mined for asphalt as was historically common, first by the indigenous Taíno people and subsequently the Spanish, who used it to caulk their ships. In Cuba an oil seep can be a reminder you’re in the right spot but when you’re chasing a higher quality product, you need to dig a little deeper. Over the course of the last year we’ve been frustrated by the rate of our progress on the ground. However, this has afforded us the ability to study in greater detail the vast amount of samples and data we have collected during the exploration phase. We’ve talked a lot about what we’ve learned in terms of formation damage and drilling fluid compatibility but we’ve also learned a lot about the geology and that is, of course, fundamental to developing the large oil discovery that we’ve made. It may sound odd, but we’ve learned a lot from very small to microscopic fossils of ancient marine critters and pollen spores. Literally getting the rock samples under the microscope has allowed us to better understand what’s happening in the macro scale with the structure and the various reservoir sheets that have been thrust one on top of another, compressing about 70km of horizontal section into about 10km. We now describe the structural reservoir sheets we’ve observed to date as the Amistad, Alameda and Marti sheets. Together they form part of a buried mountain range that is the anticlinorium of the greater Alameda field, not dissimilar to what you can see above ground if you cross the Rocky Mountains of North America. Whilst that’s helpful and interesting, this micro-scale work has also allowed us to better understand how the discoveries we’ve made relate to the numerous nearby oilfields and the local formation terminology. The shallow section of the Amistad sheet (Unit 1A and Unit 1B) is most similar to the massive Varadero field that’s produced over 200 million barrels of extra-heavy (<10° API) crude. We’re yet to properly test the shallowest Unit 1A reservoir, locally known as the Santa Teresa Formation. However, most of the Amistad sheet is made up of Unit 1B and is the core of our near-term development focus. Alameda-2 demonstrated the productive potential averaging 1,235 bopd on drill stem testing (DST) of a much lighter, less viscous (19° API) crude than is produced at Varadero. The quality of crude is important and has a significant impact on its market value. Analysis of the 19° API Amistad crude shows that it is comprised of a significant proportion of valuable middle distillates and surprisingly heavier asphaltenes, which makes it very attractive to oil traders and refiners alike. Our Alameda-2 (aka Amistad-1) oil well is now in full time production, and we are building inventory as we await our first export. We also await the return of the drilling rig to commence our first singletarget development well: Amistad-2. The Amistad Unit 1B reservoir has been assessed as containing a gross contingent resource2 of 46 million barrels (2C) in the eastern end of the field plus 90 million barrels of gross prospective resource3 (2U) in the western end of the structure. The shallow Amistad sheet also includes a further 32 million barrels (gross) prospective resource relating to Unit 1A. The government of Cuba and our joint operations partner remain supportive of the Company’s plans for development of the field, which we have commenced on a modest scale thus far. During the year the Company commenced production from the field and is now progressing as expeditiously as economically sensible towards revenue from Block 9. This is an important milestone and one on which we will build to significant scale in the coming years. The Company is fortunate to have been able to acquire such a high-quality exploration asset in such a prolific oil-prone area. Amistad production commenced Alameda-2 was spudded in June 2023, reached total depth of 1975m on 31 July 2023 and produced an average of 1,235 bopd of oil during DST-4 of Unit 1B. Extended production testing during 2023 and 2024 demonstrated that the formation had been damaged during well-kill operations following the successful DST. During the period, the well was subject to a remedial workover and acidisation. The Alameda-2 remedial workover commenced in February 2025 using a service rig, primarily on 12-hour operations, the scope included: 07 Melbana Energy Limited Annual Report 2025
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