Melbana Energy Limited (ASX: MAY), an Australian oil and gas exploration and appraisal company with projects in Cuba and Australia, has announced the completion of the Amistad-2 well in Block 9 PSC onshore Cuba. Melbana, which is the operator and holds a 30% interest in the block, reported that flow testing indicated a highly permeable reservoir. However, no oil was recovered during the testing phase. The well was drilled to a total depth of 2,000 metres, intersecting 169 metres of highly porous net reservoir. Plug and abandonment of Amistad-2 is now proceeding.
Executive Chairman Andrew Purcell expressed disappointment with the testing results, noting that while the well was updip of known oil, such outcomes can occur in early-stage oilfield appraisal. He highlighted that despite muted oil shows during drilling, well logs indicated good reservoir quality and reasonable oil saturation. The flow testing confirmed excellent reservoir quality based on the high fluid recovery rate, but the oil was determined to be residual at the Amistad-2 location. Purcell added that the drilling rate was faster than expected, allowing for deeper drilling than originally planned.
The company is now placing renewed emphasis on the low-cost 2D seismic survey currently underway. Melbana intends to use this data, combined with analysis from the Amistad-2 results, to inform its future work program in Block 9. The acquisition of the seismic data, utilizing a mobile hydraulic weight-drop system, is nearing completion. Preliminary processing of the initial data line indicates good quality and the potential to enhance or replace existing seismic data used for well targeting.
Given the Amistad-2 results, Melbana is considering replacing Amistad-3 with Amistad-11 as the next well to be drilled. Amistad-11 would be a shallow production well located on Pad 1, where good production characteristics have been previously observed. Production operations in Amistad-1 have been temporarily halted in preparation for the potential drilling of Amistad-11, pending approval from the Joint Operation.
