Melbana Energy's activities summary for the quarter ended 31 March 2024

Melbana Energy Limited (ASX: $MAY) provided a summary of its activities for the quarter ended 31 March 2024. The company reported the commencement of the Alameda-3 Appraisal Well operations in Cuba and the suspension of primary term work conditions for WA-544-P and NT/P87 permits in Australia. Melbana Energy also disclosed having $16.4 million cash available at the end of the quarter.

Executive Commentary on Alameda-3 Appraisal Well and Permit Terms Extension

The Alameda-3 Appraisal Well operations in Cuba have progressed as planned, with the drilling reaching the total depth of 3835mMD. The successful flow testing of Unit 3 of the Amistad reservoir demonstrated the presence of moveable oil of similar quality as observed in the Alameda-2 appraisal well. Additionally, the independent evaluation by McDaniel and Associates confirmed maiden Contingent Resources and an upgrade to Prospective Resources. In Australia, the primary term work conditions for WA-544-P and NT/P87 permits have been suspended for 18 months, with the permit terms similarly extended by 18 months. The company's cash position at the end of the quarter stood at $16.4 million.

Summary of Quarterly Activities and Outlook

Melbana Energy's activities in the quarter primarily focused on the Alameda-3 Appraisal Well operations in Cuba and the extension of permit terms in Australia. The successful flow testing of the Amistad reservoir and the confirmation of Contingent Resources and Prospective Resources in Cuba demonstrate the company's progress in its field development plan for Block 9. The suspension of primary term work conditions for the Australian permits provides Melbana Energy with an extended timeline to complete geological and geotechnical studies before deciding on further exploration activities. With $16.4 million cash available, the company is well-positioned to continue its operations and pursue its business objectives.