Preparations underway for start of Zapato-1 exploration well

Melbana Energy release

Highlights
- Preparations underway for relocation of drilling rig and camp to Zapato-1. Drilling
operations forecast to commence last week of May 2022
- The Zapato prospect to be tested by Zapato-1 is estimated to have a Prospective
Resource of 95 million barrels of oil (Best Estimate)¹
- The Alameda-1 well was safely contained once attempts to conduct early and short
tests of the deeper oil intervals encountered could not be done effectively using the
current well design and condition.
- Alameda-1 encountered 300 metres MD / 278 metres TVD of net hydrocarbon pay
across three independent zones. Plans for the effective testing of these significant oil
intervals are being reviewed in light of the high formation pressures encountered there
- Planning advanced for testing of Alameda-1 following completion of Zapato-1

Melbana Energy’s Executive Chairman, Andrew Purcell, commented: “Our Alameda-1 exploration well has delivered results considerably greater than our predrill expectations. Having found three significant and highly energised intervals of net hydrocarbon pay we were naturally keen
to try and get some data on the oil’s composition and the likely performance of the reservoirs as soon as possible, but this will now have to wait for the formal testing program given that management of the high formation pressures made it complicated to repurpose our exploration well into a testing environment. We’ll all have to be a little more patient, therefore, but gladly accept that the reasons for the challenges we faced in drilling Alameda-1 give us good reason to be optimistic about our future in Cuba. We are now revising our plans for testing in Alameda-1 whilst also preparing for the start of drilling at Zapato-1.”

¹ 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, released to ASX on 7 August 2018, as adjusted by Melbana for area relinquishment. 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.

The full release is available here.