Sunrise at drilling camp. Source: Melbana
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • Melbana Energy (MAY) confirms the presence of moveable hydrocarbons at its Unit-3 target in Cuba
  • The company is drilling ahead at Unit 2
  • While no oil was brought to the surface the company reported water flows indicate that the pressure dynamics will allow for oil to flow
  • The company believes it could produce 750 bopd from the asset
  • Shares last traded at 10.5 cents

Melbana Energy (MAY) has today confirmed the latest appraisal of the Block 9, Alameda-2 asset may be able to produce up to 750 barrels of oil per day (bopd).

While that output rate pales in comparison to larger projects, the news does come as an affirmation to patient shareholders that hydrocarbon deposits are underground on-site.

Melbana reported that movable hydrocarbons (meaning deposits that can be brought to surface) were confirmed in the target Unit 3.

It is testing of that Unit 3 target from where the company extrapolates its assumptions on a flow of 750 bopd. However, this is due to water flows – no actual oil was produced in the test.

The news will come as a cautious boon for shareholders in Melbana who have been sitting with the company through numerous drilling difficulties and delays.

Despite this, year to date, the company is up 66 per cent.

Unit 3 was penetrated 500 metres to the south of the Alameda-1 target. Another target, Unit 2, is now being drill tested.

Total depth downhole Unit 3 hit 1975 metres back in late July with tests plodding along since then.

“Results from Unit 3 have again demonstrated the presence of moveable hydrocarbons in the Amistad interval,” Melbana Energy CEO Andrew Purcell said.

“Unit 3 was intercepted some 500 metres away and 200 metres up dip from where the same unit was intercepted in Alameda-1, [meaning] we have a significant oil bearing formation typical of what is normally produced in Cuba.”

Melbana Energy shares last traded at 10.5 cents.

MAY by the numbers
More From The Market Online
The Market Online Video

Market Close: Autumn’s ASX200 record breaking start

The ASX200 has closed the first day of Autumn at a new record 7745.6 points -…
The Market Online Video

Ark Mines (ASX:AHK) improves REE grades at Sandy Mitchell

North Queensland-based REE explorer Ark Mines (ASX:AHK) has proven higher-grade mineralisation is present on-site.

Week 9 Wrap-up: ASX hits 2 new ATHs on US inflation + the headlines that mattered

What a week. As US markets continue to go crazy after the American earnings season (read: NVIDIA), the ASX has done the same. 

Ora Banda Mining secures $30 M placement, marks progress toward second underground mine

Ora Banda Mining (ASX:OBM) has completed a single tranche placement, securing commitments at an issue price…