The promise of a substantial reward for our considerable efforts to date in Cuba remains very much alive and we and our partners remain committed to delivering it as soon as possible. The Alameda-3 appraisal of the deeper two reservoirs was a disappointment, of course. We know those structures contain moveable hydrocarbons accompanied by considerable formation pressure, so the task before us is to take these learnings and adapt our drilling practices to recover these accumulations without damaging the reservoirs. The results of the workover techniques we will soon trial in the Amistad structure, some of which have been successfully applied previously on similar formations in Cuba, will be informative. It is important to remember, however, that the stable (choked) 1,200 barrels per day of production we initially measured from Unit 1B was delivered through perforated casing and only over 20% of the net pay. The next production wells are designed to allow production from the entire net pay (346 metres TVD). The promise of a substantial reward for our considerable efforts to date in Cuba remains very much alive and we and our partners remain committed to delivering it as soon as possible (whilst also sharing your frustration at the unexpected obstacles that appear to test our patience). We have also found time during the reporting period to add to our portfolio of exploration plays here, in offshore Australia, targeting large possible accumulations of hydrocarbons. We have a good track record of identifying such targets then presenting our analysis of them to larger players better funded to test our ideas, hence we continue to work up and market our ideas, but progress has been slow these past few years given the Federal Government’s lack of enthusiasm for new fossil fuel projects. We suspect that the slower and more expensive transition to the new energy economy coupled with the projected looming shortfall of the gas needed to fuel this transition is forcing a practical re-examination of this position. Significantly, Melbana was one of only a handful of companies to be offered new acreage for the first time in several years. Our Company now has an attractive portfolio of opportunities and we are well positioned to take advantage of the returning enthusiasm for upstream exploration. Finally, I commend our team for their excellent technical work and diligent application of their efforts to realising our goals. It has been a challenging year but a significant reward is within our reach. A lesser team would not have achieved what we have achieved. Andrew Purcell Chairman 03 Melbana Energy Limited Annual Report 2024
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