Rig at the Alameda-1 site. (2021) Source: Melbana Energy
The Market Online - At The Bell

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

  • Melbana Energy (MAY) confirms flowing oil at its Alameda-2 well in Cuba
  • The move reflects a positive indication following a long series of delays and setbacks for the company
  • Melbana continues to drill on-site, with “multiple exciting intervals” yet to be tested
  • Shares in MAY last traded at 8.7 cents

Melbana Energy’s (MAY) long-awaited production results from its Alameda-2 well in Cuba have seen the company confirm flowing oil.

A production test in one area saw oil flow to surface unassisted.

“What we have found is typical of the quality of crude found in Cuba at shallow depths,” MAY Executive Chair Andrew Purcell said.

“Given this significant interval of oil-rich fractured carbonate, it will now need to be factored into … development planning once we have completed testing.”

Mr Purcelll added that there are still “multiple exciting intervals” to be tested, with drilling continuing at Alameda-2.

A long series of equipment issues have plagued Melbana’s efforts to become a Cuban-based oil producer in recent years.

The company’s assets reside in a permit boundary called Block 9.

Shares in MAY last traded at 8.7 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…