Melbana Energy Limited Annual Report 2022

Cuba Block 9 5 Melbana Energy Limited Annual Report 2022 Highlights Australia Cuba Cuba Permit sold to EOG Australia for: – Up-front payment of US$7.5m – Contingent further payments totalling US$5m – Production Bonus Payments of US$10m for every 25m barrels of oil in the event of commercial development. Strategically, the sale provided Melbana with a material cash boost to fund its ongoing domestic projects. The group also retains a 100% interest in the adjacent permit areas WA-544-P and NTP87, where geoscientific studies were advanced over the year. Drilling of a well by EOG Australia is planned for 2023, subject to rig availability. Post-sale, the project offers material revenue upside for Melbana with no exposure to any future drilling or permit costs. Farmout of a 70% interest in Block 9 to Sonangol, the national oil company of Angola, in consideration for Sonangol paying the Company $5 million for its past costs and agreeing to meet 85% of the costs of a two well exploration drilling program: – The first exploration well, Alameda-1, encountered three significant and independent oil reservoirs with moveable hydrocarbons and often accompanied by significant formation pressures. – These reservoirs were later independently assessed to contain 6.4 billion barrels of oil in place for a Prospective Resource of 362 million barrels of oil. The three significant and independent oil reservoirs encountered thus far provide Melbana with an exciting opportunity to prove up a world class oil and gas asset. Successful application for exploration permit AC/P70, located in the Territory of Ashmore and Cartier Islands. AC/P70 contains the undeveloped Vesta-1 oil discovery (drilled 2005) and is a complex field uniquely suited Melbana, a junior explorer which has the technical capacity to bring new solutions and bring on the right partners for development. Sale of WA-488-P Exploration success in Block 9 AC/P70 granted