Past year: ▼ 77%(0.30c – 1.50c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
1 Feb 2022drilling progress report▲ Good
Alameda-1 hit strong oil shows in the N Sheet, the first primary target, with free oil at surface and shows from 3,055m to 3,200m (145m gross). It is the well's second oil interval; the larger Alameda target remains ahead. Logs are needed to confirm significance.
27 Jan 2022drilling progress report▲ Good
Alameda-1 reached 2,971m, with oil and some gas shows from 2,865m as it approaches the N target forecast near 3,000m. Rock matching the expected seal above N was drilled. Significance of the shows is not yet known.
19 Jan 2022drilling progress report● Neutral
Casing and the higher-pressure blowout preventer are installed and drilling resumed, now at 2,622m. Alameda-1 completion is now forecast for end of February, with Zapato-1 next. Purcell is in Cuba; an updated resource assessment is promised.
12 Jan 2022drilling progress report● Neutral
Alameda-1 was drilled to 2,592m, logged, and 9-5/8 inch casing is being run. The N target is still forecast near 3,000m.
4 Jan 2022drilling progress report● Neutral
Alameda-1 reached 2,511m, with drilling continuous over Christmas. Casing will be set near 2,700m, before the N target at about 3,000m and the larger Alameda target at about 3,600m.
21 Dec 2021drilling progress report▲ Good
Drilling at Alameda-1 restarted on 16 December after the supply-related standby and reached 2,093m. The primary N and Alameda targets are still to be reached.
10 Dec 2021drilling progress report▲ Good
Drilling supplies reached Cuba and more are due around 20 December, projected to be enough to finish Alameda-1. Drilling should restart around the end of next week. The Zapato-1 well pad is complete.
26 Nov 2021drilling progress report▲ Good
Drilling supplies for Alameda-1 have been secured, with the first shipment due 29 November, so preparations to restart drilling have begun. The well was shut in at about 1,892m after a high-pressure zone was met 350m shallower than predicted.
9 Nov 2021drilling progress report▼ BadMajor
Alameda-1 was shut in at 1,892m because shipping delays left it short of barite for mud, pausing drilling. Melbana has begun planning an extra well on the same pad to test the shallow Amistad oil zone.
2 Nov 2021drilling progress report● Neutral
Liner repairs on Alameda-1 are complete, with pressure testing next before drilling resumes. An oil sample measured 15° API, lighter than nearby Varadero oil, though sampling was not ideal. Mapping of the shallow zone has started.
26 Oct 2021drilling progress report● Neutral
Melbana now considers the shallow zone in Alameda-1 an oil and gas discovery, though commerciality is undetermined. Drilling was delayed because the cement behind the liner did not set properly and needed remedial work.
19 Oct 2021drilling result▲ GoodMajor
Logs on Alameda-1 indicate at least 48 net metres of potential oil and gas pay across 11 zones (415m gross), rising to about 100m on a looser cut-off. About 290m could not be logged. Primary targets are still to be drilled.
12 Oct 2021drilling progress report● Neutral
Alameda-1 hit a higher-pressure zone near 1,842m with gas and some oil flaring, so the company will log the hole and set a liner before continuing. Another zone of interest is reported; the primary targets are still ahead.
5 Oct 2021drilling progress report▲ Good
Alameda-1 oil shows now run continuously for 670 metres, to 1,130m, including flows of oil into the wellbore; drilling is at 1,820m. Logging is needed to judge significance. Continues the 27 Sept shows; the deeper primary targets remain ahead.
27 Sept 2021drilling progress report▲ GoodMajor
Alameda-1 found unexpected moveable light oil shows from 454m to 1,047m, a thickness of 547 metres, in shallow limestones above the planned targets. Significance is uncertain until logging; the main targets are still deeper.
21 Sept 2021drilling progress report● Neutral
Alameda-1 reached its first casing point at 457 metres without incident, with minor residual oil shows as seen in offset wells. First target is about 800 metres. Casing is being cemented.
14 Sept 2021drilling spud▲ GoodMajor
Alameda-1 spudded on 13 September 2021, on the forecast date, starting the long-planned Block 9 Cuba campaign. The well will test three targets with 141 million barrels of best-estimate prospective resource (unrisked). Webinar set for 16 September.
7 Sept 2021drilling progress report▲ Good
Alameda-1 derrick raised and camp operational, with spud still expected on or about 13 September. The chairman says the raise leaves the company adequately funded for its Block 9 commitments.
30 Aug 2021drilling progress report● Neutral
Camp and rig parts are arriving at the Alameda-1 site, and spud remains on or about 13 September despite some delayed shipments. Zapato-1 pad work continues; the offer closes 3 September.
16 Aug 2021drilling progress report▲ Good
Alameda-1 drilling is now forecast to start 13 September 2021 after a satisfactory rig inspection and agreed mobilisation dates. This firms up the early-September timing; Zapato-1 civil works have also begun.
13 July 2021drilling progress report● Neutral
Drilling equipment began arriving in Cuba, with all items due by late August, and the rig inspection was scheduled for July. Drilling of Alameda-1 was forecast to start in September 2021, in line with the earlier Q3 expectation.
28 Apr 2021drilling progress report● Neutral
Alameda-1 pad is finished and Zapato-1 pad work starts mid-May at lower than budgeted cost. Drilling now projected Q3 2021, described as 'best case' because COVID shipping delays equipment. This pushes the spud later than mid-2021.
8 Feb 2021drilling progress report● Neutral
Long-lead pipe supply contract awarded; the drilling contract is still to be signed. Alameda-1 now expected mid-2021 (previously March). Cash on hand ~A$16.5m after January cash calls. Melbana is carried for 85% of drilling costs.
28 Oct 2020drilling progress report● Neutral
Alameda-1 pad is slowed by heavy rain, now due by year-end. Long-lead orders approved by the joint venture. Alameda-1 is expected to start March 2021 (~75 days), then Zapato-1 in June. Melbana is carried for half its share of costs.
24 Sept 2020drilling progress report● Neutral
Civil works began on the Alameda-1 well pad in Cuba's Block 9; the drilling contractor deal is advanced and tubulars tender done. $2.4m of past costs received, ~$3m more called in October. Drilling now mid Q1 2021 (earlier Q4 2020), a slip.
24 Aug 2020resource reserve update▲ GoodMajor
Melbana's own 3D seismic reassessment lifts Beehive's best-estimate prospective resource about 7% to 419 MMboe, from McDaniel's 388 MMboe in 2018. Farmout is underway, with drilling possible in late 2021. Unrisked resource, not a discovery.
17 Aug 2020farm in farm out completion▲ GoodMajor
Formal Cuban approval was received, so from 17 August 2020 Sonangol holds 70% and Melbana 30% of Block 9. This satisfies the farm-in's last condition. Well pad construction is expected next month, and a tubulars tender is running.
27 May 2020farm in farm out agreement▲ GoodMajor
Melbana signed the formal Block 9 farm-in with Sonangol, replacing the December heads of agreement. Sonangol funds 85% of the Alameda and Zapato wells to earn 70%, and pays about $5m of past costs. Cuban approval received but still being documented; first well Q4 2020.
4 Mar 2020farm in farm out completion▼ BadMajor
Santos failed to farm down by 4 March 2020, so its option over Beehive expired and it has no further interest. Melbana holds 100% of WA-488-P again and is seeking partners to drill, and plans to seek an extension of its drilling deadline. Reverses the Santos farm-out hope.
23 Dec 2019farm in farm out agreement▲ GoodMajor
Melbana signed a binding heads of agreement for Sonangol (Angola's national oil company) to take 70% of Cuba Block 9 by funding 85% of a two-well campaign. Melbana keeps 30% and operatorship, and Sonangol pays about $5.0m of past costs. Subject to due diligence and approvals; first well expected Q3 2020. Resolves the long-running farm-out search.
