Australian operator Melbana Energy has modified its drilling plans for the Block 9 production sharing contract onshore Cuba following the disappointing results of its Amistad-2 well. The well was drilled to a total depth of 2000 meters but was completed with no oil recovered. While the primary target was encountered deeper than anticipated and the reservoir was found to be wet and highly productive, it did not yield oil.

Analysis and Revised Drilling Strategy

The company is currently conducting a 2D seismic survey and analyzing data from Amistad-2 to improve geological understanding and identify future well targets. The executive chairman stated that the well's location was favorable, being near and updip of known oil, and data gathered during drilling indicated excellent reservoir characteristics and the presence of hydrocarbons. However, the company requires more time to study the data before proceeding with the previously scheduled Amistad-3 well, deeming it premature to drill until the analysis is complete.

New Drilling Focus: Amistad-11

Melbana has now mobilized its drilling rig to drill Amistad-11 next. This well is designed as an updip twin of Alameda-2, which was the company's most successful production well in Block 9, originally producing over 1200 barrels of oil per day. However, after being shut in to drill Alameda-3 and an only partially successful workover, Alameda-2's production rate dropped to less than 300 barrels per day upon reopening in late 2023. The company evaluated alternatives, including another workover or a sidetrack, but concluded that a new well incorporating all fluid management and well design learnings offers the highest probability of success.

Expected Outcomes and Project Details

Amistad-11 is expected to spud before the end of November and be completed by year-end, subject to permits. The well will kick off at a shallower depth than Alameda-2 to achieve desired separation at the optimum reservoir depth and then drill deeper to a total depth of 1000 meters. The company expressed high confidence that this new well, utilizing updated operational practices, can be brought online at an improved production rate before the end of the year.

Block 9 Context and Commercial Agreements

Block 9 covers over 2344 square kilometers on Cuba's north coast, situated in a proven hydrocarbon system along trend with the multibillion-barrel Varadero oilfield. The block has an estimated prospective resource of 676 million barrels of oil. Melbana is in the final stages of formalizing a joint marketing and sales agreement with its Block 9 stakeholders to export 100% of production. Melbana holds a 30% operated interest in the block, with the Angolan national oil company Sonangol holding the majority 70% stake.