Melbana Energy Makes Headway in Cuba Operations with Workover Success at Block 9

Highlights:

• Successful workover program at Block 9 in Cuba has resulted in increased production rates.

• Formation issues that impacted previous operations have been addressed, leading to significant improvements.

• Focus is now on ramping up oil inventory and preparing for the first oil shipment.

Melbana Energy (ASX:MAY), a company involved in energy exploration, is making significant strides in its operations at Block 9, located onshore in Cuba. The company has successfully addressed mechanical and formation-related issues that had previously hindered its development plans in the region. This development marks an important milestone for the company as it works toward scaling up production and meeting its shipment goals.

Addressing Formation Damage at Block 9

Melbana's operations at Block 9 had been impacted by formation damage, a challenge that led to rapid declines in production levels. Following extensive analysis, it was determined that the completion fluid used in earlier phases was the likely cause of this damage. To resolve this, Melbana developed a workover program that aimed to repair the damage using data gathered from studies on the interaction of fluids with the formation. The success of this program has resulted in a significant increase in production levels, bringing the company closer to its goal of commencing oil shipments.

Workover Success and Increased Production

The workover of Unit 1B within the Block 9 operations has had a positive impact on production. The company reported that production rates increased substantially, with output rising to a more favorable level. This achievement represents a significant step forward in the company’s plans for the development of Block 9, allowing for greater production capacity in preparation for oil exports.

Melbana’s workover program has demonstrated promising results, with a marked improvement in the reservoir’s performance. The company remains focused on using the lessons learned during this process to optimize future production strategies, further enhancing its operations at Block 9.

Future Focus on Drilling and Oil Shipments

Looking ahead, Melbana is now turning its attention to the upcoming drilling of the Amistad-2 production well. Preparations for this program are on schedule, with civil construction expected to be completed soon. This new drilling effort is poised to further support Melbana’s production capabilities at Block 9.

In addition, the company is concentrating on building its oil inventory in anticipation of its first oil shipment. The improved production rates and ongoing preparations for new drilling efforts position Melbana for continued operational success at its Cuban assets.

Ongoing Developments in the ASX Energy Stocks Sector

Melbana Energy's recent progress aligns with broader trends in the ASX Energy Stocks sector, which continues to experience advancements in both exploration and production. The company’s workover program at Block 9 serves as a demonstration of the sector’s ability to overcome technical challenges and enhance production capacity, reflecting the ongoing dynamism within the Australian energy sector. As Melbana Energy works towards further refining its operations, the success of its workover program underscores the importance of adaptability and innovation within the industry.