Directors’ Report The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the ‘Consolidated Entity’) consisting of Melbana Energy Limited (referred to hereafter as ‘Melbana’, the ‘Company’ or ‘Parent’) and the entities it controlled at the end of, or during, the year ended 30 June 2024. Directors The following persons were Directors of Melbana Energy Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Andrew Purcell (Executive Chairman) Michael Sandy (Non-Executive Director) Peter Stickland (Non-Executive Director) Principal activities The principal activities of the Consolidated Entity during the year were oil and gas exploration in Cuba and Australia together with development concepts for the Tassie Shoal Methanol and LNG Project. Dividends There were no dividends paid or declared during the current or previous financial year. Review of operations International Operations Cuba - Block 9 (Melbana 30%) During the reporting period, the Company completed the drilling, logging and testing of its Alameda-2 well, including definitive oil discovery tests of the Amistad Unit 1A and Unit 1B reservoirs. The Amistad Unit 1B, tested in DST4 was most notable with an average rate of 1235 bopd being achieved with no formation water. Oil samples from DST4 indicated a high‑quality crude of API 19°. Following test operations, the well was completed as a future Unit 1B producer using standard oilfield practices and the drilling rig stacked on location for upgrades. An EPT was conducted on Alameda-2 over a 38-day period comprising flow and shut-in periods, SGS and a MPLT survey. Flows during the EPT averaged approximately 300 bopd with no formation water and several oil samples were obtained for further analysis. Analysis of the EPT results suggests the reservoir formation was damaged, possibly during completion operations. The EPT also provided highly encouraging information. It confirmed that the majority of flow was from the deeper fractured reservoir section and indicated some flow contribution from behind uncemented casing, further extending the most likely oil column in Unit 1B. Extended testing also provided data on the logistics of oil transport from location with 20 tanker loads being sent to off-site storage. Alameda-2 has provided a wealth of geological, reservoir performance, engineering and commercial information and delivered confirmation of the oilfield’s commercial potential. The definitive discovery and subsequent analyses are forming the basis of new development plan concepts. The Joint Operation is now focussed on near-term commercialisation of the Amistad Unit 1B discovery and recently received an updated resource certification for the Amistad Unit 1B and Amistad Unit 1A reservoirs (see Table 1,2,3 & 4). Melbana is developing a well workover program that aims to restore the higher flow rates observed in the Alameda-2 Unit 1B production well during the original DST prior to it being killed and shut in for an extended period. Laboratory analysis of fluid and rock samples recovered from this unit, analytical reservoir modelling and Cuban experience of successfully remediating reservoirs that have behaved similarly in the past have been useful inputs to the selection of the preferred well workover strategy to return the flow to levels observed in the original DST. The initial field development plan, focused on the relatively shallow Unit 1B of the Amistad sheet, was reviewed with the Company’s Joint Operation partner, Sonangol and the Cuban regulator in a series of workshops and field trips held in Cuba in May 2024. 12 Melbana Energy Limited Annual Report 2024
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