Melbana Energy operational update

Melbana Energy Limited (ASX:MAY) has received approval for the initial development of Unit 1B and is on track for Q1 2025. The company has also received construction approval for the next Unit 1B well pad and all export approvals for oil. The oil offtake contract terms are being finalized with an international oil trader. Remediation of the existing Unit 1B production well is planned for November, with the export of the initial oil cargo on track for the end of 2024.

Executive Chairman's commentary on operational update

It's been a busy few months getting everything organized to meet our goal of exporting our first trial cargo of oil by the end of this year. Production from the existing completion in Unit 1B from the Alameda-2 well was recently brought back online to further refine our logistics, storage, and processing arrangements as well as to build some more inventory. Remediation of this completion is planned for November, the objective of which is to restore the well's initial production rate of 1,235 barrels per day. All export approvals are in place, and the oil trucks/tankers we requested have arrived in the country. Offtake arrangements with a major international oil trader are also in an advanced stage of negotiation.

Summary of operational update and outlook

Melbana Energy has made significant progress in the development of Block 9 Amistad Field, with approvals for the initial development of Unit 1B and construction of the next well pad. The company is focused on exporting its first trial cargo of oil by the end of 2024 and is finalizing the oil offtake contract terms with an international oil trader. The planned phased development will involve drilling new production wells to increase recovery of the estimated 46 million barrels of Contingent Resource. Melbana Energy is also in discussions with potential new partners and credit providers to support the development of Block 9. The company's transition from an explorer to a producer marks an important milestone, and its ambitions to increase production from the Contingent Resource demonstrate its commitment to corporate strategy and growth.