- Melbana Energy (MAY) shares welcomed the discovery of live oil during ongoing drilling efforts at the company’s Alameda-1 exploration well in Cuba
- MAY encountered light oil shows 454 metres down-well, accompanied by elevated gas readings
- Melbana says it is unsure as to the significance of the shows and is awaiting the results of the samples which have been sent for further analysis
- The company believes the discovery has given way to an additional potential oil zone
- Melbana Energy shares are up 22.2 per cent to trade at 2.2 cents at 12:20 pm AEST
Melbana Energy (MAY) shares welcomed the discovery of live oil during ongoing drilling efforts at the company’s Alameda-1 exploration well in Cuba.
The company informed the market it had encountered oil shows consisting of “relatively light oil” at 454 metres to the current depth of 1,047 metres, implying a thickness of 547 metres so far.
Melbana is operator of the drilling taking place at the Block 9 Production Sharing Contract (PSC) on the north coast of Cuba and has a 30 per cent interest in the block.
The company confirmed hydrocarbon shows were encountered from soon after the first casing point within the well, giving way to moveable oil and elevated gas readings.
Melbana said it was unsure as to the significance of the shows and is awaiting the results of the samples which have been sent for further analysis.
However, the company said discovering moveable oil at such shallow depths was unexpected and had in turn generated an additional zone of interest.
Melbana Energy Executive Chairman Mr Andrew Purcell commented on the update.
“The unexpected recovery of live oil at this shallow depth provides an additional potential oil zone in Alameda-1 and increases the prospectivity of other “Upper sheet” structures in the Block 9 PSC,” Mr Purcell said.
“We are encouraged for the chances of finding oil deeper in the well and are drilling on towards our primary objectives.”
Drilling is set to continue at the well to 2200 metres ahead of a planned wireline logging program.
Melbana Energy shares were up 22.2 per cent to trade at 2.2 cents at 12:20 pm AEST.