Highlights
* Independent reserves expert McDaniel & Associates has made the following assessment of the three oil reservoirs encountered by the Alameda-1 well in the upper sheet in the Block 9 Production Sharing Contract (Block 9 PSC) area, onshore Cuba:
-- 2.5 billion barrels of oil in place
-- a combined 119 million barrels* of Prospective Resource (100% share, unrisked mean estimate)
-- 86% chance of geological success in at least one of the three zones
* Melbana has a 30% participating interest in Block 9 PSC
* Resource assessment is for the upper units of Alameda-1 only
*Prospective Resources Cautionary Statement - The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) related to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Future exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. All quoted volumes have been taken from Independent Expert McDaniel & Associates Competent Persons Report dated 8 March 2022. Melbana is not aware of any new information or data that materially affects the information included in that announcement and that all the material assumptions and technical parameters underpinning the estimates in the announcement continue to apply and have not materially changed.
Melbana Energy’s Executive Chairman, Andrew Purcell, commented: “This is the first independent assessment of the results obtained from the drilling of the Alameda-1 well and it confirms the significant potential of what we encountered in the upper sheet. Given that moveable oil was unexpected at these shallow depths, Block 9 now has the potential to provide quicker and cheaper access to significant volumes of oil independent of the deeper zones that were the primary objectives of this well. McDaniel’s estimates of Prospective Resource have the potential to increase if the recovery rate they assumed is greater in practice (a possibility given the oil that has been encountered in Alameda-1 appears to be less heavy, under considerably more pressure than that found offshore and, given our well is onshore, more easily able to employ many different secondary recovery techniques and orient the drilling from any direction to exploit the existing fracture system). A separate assessment will be undertaken of the resource potential of the deeper primary objectives once the drilling and testing operations at Alameda-1 have been completed.”
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