Resource upgrades During the reporting period the Company made a significant announcement pertaining to the three oil reservoirs encountered by the Alameda-1 exploration well in the Amistad structure in its Block 9 Production Sharing Contract (Block 9 PSC) area, onshore Cuba. The resource estimate for these reservoirs were independently assessed4 to contain a combined (all of the following volumes are quoted on a 100% share unrisked mean estimate basis): – 2.5 billion barrels of oil in place – 119 million barrels of Prospective Resource1 Subsequent to the end of the reporting period, the Company released the independent resource assessment for the Alameda reservoir, the second of three encountered by the Alameda-1 exploration well in Block 9 PSC: – 2.3 billion barrels of oil in place – 148 million barrels of Prospective Resource1 Also subsequent to the end of the reporting period, the Company released the independent resource assessment for the Marti Reservoir, the third and final reservoir encountered by the Alameda-1 exploration well in Block 9 PSC: – 1.5 billion barrels of oil in place – 95 million barrels of Prospective Resource1 The three reservoirs encountered by the Alameda-1 exploration well have now been independently assessed to contain a combined: – 6.3 billion barrels of oil in place – 362 million barrels of Prospective Resource1 There were no other significant changes in the state of affairs of the Consolidated Entity during the financial year. Directors’ Report continued Matters subsequent to the end of the financial year On 8 July 2022, independent expert McDaniel & Associates estimated the Alameda (previously, N) reservoir to contain 2.3 billion barrels of oil in place for a Prospective Resource of 148 million barrels1. On 1 August 2022, independent expert McDaniel & Associates estimated the Marti (previously, I) reservoir to contain 1.5 billion barrels of oil in place for a Prospective Resource of 95 million barrels1. All of the volumes quoted above are on a 100% share unrisked mean estimate basis. Drilling operations are continuing in Zapato-1, the second exploration well in Block 9, Cuba. As of the reporting date the well had reached 2,354 mMD with a pre-drill prognosis for the top of the target structure estimated to begin at about 2,650mMD. As of the reporting date, the Company has received approximately $15.9 million from exercise of listed options (ASX: MAYO) and issued 452,983,946 fully paid ordinary shares. No other matter or circumstance have arisen since 30 June 2022 that has significantly affected, or may significantly affect the Consolidated Entity’s operations, the results of those operations, or the Consolidated Entity’s state of affairs in future financial years. Likely developments and expected results of operations The Consolidated Entity will continue to pursue its interests in: – Block 9 PSC in Cuba in partnership with Sonangol. Exploration drilling operations are proceeding. The Company is preparing plans for the appraisal of the moveable hydrocarbons encountered whilst drilling its first well (Alameda-1) and will finalise these upon completion of the drilling of Zapato-1. – EOG Australia is making preparations for the drilling of its Beehive-1 exploration well inWA-488-P in the Joseph Bonaparte Gulf in northern Australia which may begin in the following reporting period. The Consolidated Entity has no exposure to the cost of the drilling of this well or to the permit but is entitled to receive cash and royalty interests contingent on future elections made by EOG Australia inWA-488-P and commercial success from the drilling of the exploration well. – Its other permit areas and licences. Health Safety and Environmental regulation The Consolidated Entity holds participating interests in a number of oil and gas areas. The various authorities granting such tenements require the licence holder to comply with the terms of the grant of the licence and all directions given to it under those terms of the licence. Your Board of Directors believe that all workplace injuries are avoidable. Policies and procedures are in place to ensure employees and contractors conduct all activities in a safe manner. Melbana has adopted an environmental, health and safety policy and conducts its operations in accordance with international best practice, where reasonably practicable. There have been no known breaches of any tenement conditions, one incident resulting in lost time due to injury (a second incident resulting in lost time occurred after the end of the reporting period) and zero spills within the Company’s operations during the year ended 30 June 2022. 4 Independent certifier McDaniel and Associates 12 Melbana Energy Limited Annual Report 2022
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