- 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.