The proposed phased field development plan (see Figure 1) is to rapidly commercialise the Alameda field by drilling and producing from simple, low-cost production wells drilled into the Unit 1B reservoir using existing 2D seismic. This phased development of the 1C resource (16 million barrels) will generate early revenue whilst the Company prepares to acquire 3D seismic data to optimally locate subsequent development wells and develop the entire reservoir volume more efficiently. This plan would also continue to appraise, de-risk and upgrade the contingent and prospective resources estimated by the Company’s independent reserves and resources certifier. The Company’s core goal and focus remains to achieve a first export of oil before the end of calendar year 2024. PAD-2 Marti-5 Alameda PAD-2S PAD-3 PAD-8 PAD-9 PAD-4 PAD-4N Top Unit-1B Depth Structure Phase 1 Development Area Phase-1 Extension No Contours Labels Figure 1 - Planned Unit 1B wells targeting 1C resource in eastern part of Alameda field As part of this process to achieve early exports, a complete assay of Unit 1B oil was sourced from specialist laboratories which confirmed that Unit 1B oil from the Amistad sheet has API gravity of 19.8° and sulphur content of 2.7%. The assay results indicate that the crude is marketable to refineries that specialise in such crudes. Meetings have been held with potential oil purchasers who indicated that the crude has a relatively high share of the more valuable crude components in the distillation range of 65° to 350°C, which broadly corresponds with the production of gasoline, jet/ kerosene and diesel. The percentage of oil in this range is ~40% compared with <30% typical for crudes of similar API. Over the past year, Melbana’s engineering team have continued to optimise their plans for the development of the Amistad Unit 1B reservoir through to first oil production. Initial production is now planned to be delivered by truck to the Matanzas Supertanker port, located a short distance from Block 9, where it will be stored in a dedicated tank awaiting export. McDaniel & Associates Consultants LLC (Mc Daniel), a Canadian based independent certifier of oil and gas reserves and resources assessed a Contingent Resource with a Sub-Categorisation of Development Pending for Unit 1B in the eastern part of the Alameda structure and provided a Prospective Resource Category (but with a Chance of Discovery of 70% if an appraisal well was drilled) for Unit 1B in the western part of the structure. 13 Melbana Energy Limited Annual Report 2024
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