- Melbana Energy (MAY) strikes a strong influx of gas with some oil earlier than expected in its Alameda-1 exploration well in Cuba
- The well was drilled to 1842 metres when the discovery was made, with Melbana taking on flaring work to manage the gas influx while increasing mud weight to suppress it
- Melabana says there are now two intervals in Alameda-1, which is part of the Block 9 production sharing contract (PSC), that need closer examination
- The company is now preparing the hole for electric logging in both a previously reported higher zone and the new higher-pressure interval
- Melbana shares opened slightly higher but have since settled on the grey line, trading at 2.8 cents at 12:43 AEDT
Melbana Energy (MAY) has struck a strong influx of gas with some oil earlier than expected in its Alameda-1 exploration well in Cuba.
The well, which is part of Melbana’s Block 9 production sharing contract (PSC), had been drilled to 1842 metres upon making the discovery.
Melbana said it took on some flaring procedures to manage the gas influx while increasing mud weight to suppress it. It was the smoke and colour of the flare that proved the presence of oil in the hole.
However, Melbana said this was all done without testing equipment. As such, it’s not yet possible for the company to confirm the proportions of oil and gas or their flow rate.
Still, the company has told investors that the results suggest there are at least two intervals in Alameda-1 that need closer examination.
Melbana Executive Chairman Andrew Purcell said exploration drilling often yields “unexpected results”, and as such, flexible responses are a necessity.
“Whilst drilling has not progressed as far as we had projected this past week, this was due to encountering a higher-pressure zone earlier than expected,” Mr Purcell said.
“The gas and oil influx into the wellbore (following the earlier significant thickness of reported good to excellent oil shows) provides even more encouragement regarding this shallow part of the well.”
The company explained that along with the need to manage the higher-pressure zone, drilling during the past week was slowed down by some “minor” mechanical problems, which it said had now been repaired.
Melbana has made the call to seal off the drilled section of the hole at its current depth to allow drilling to progress in a controlled manner with a higher mud weight.
Meanwhile, the company said it was preparing the hole for electric logging in both the previously reported higher zone and the new higher-pressure interval.
According to the company, the analysis of this log data will help Melbana evaluate the significance of the hydrocarbon indications found so far.
“We await the results of the electric logging — which have been brought forward from the original plan — with great interest,” Mr Purcell.
“It is important to remember that the pre-drill synopsis for this well is that the two main (primary) targets are yet to be reached.”
Melbana shares opened slightly higher but have since settled on the grey line, trading at 2.8 cents each at 12:43 AEDT.