The Beehive Prospect was independently estimated to contain a Prospective Resource of 388 million barrels of oil equivalent (Best Estimate, 100% basis)3 and a high estimate of 1.6 billion boe. Melbana revised these estimates4 to a Prospective Resource of 416 million boe (Best Estimate, 100% basis) with a high estimate of 1.4 billion boe following its assessment of the 3D seismic data acquired across the prospect in 2018. Under the terms of the sale and purchase agreement, the Company is entitled to receive contingent future payments of USD5 million (subject to the purchaser making certain future elections with regards to the permit) and USD10 million for each 25 million barrels of oil equivalent in the event oil is produced from the permit area should the exploration well be a commercial success. The titleholder has received all the approvals it needs to drill up to three wells, exploration and/or appraisal, into the Beehive structure within a defined activity area approximately 45 square kilometres in size. The wells could be drilled at any time within a 5-year window under this EP, commencing no earlier than 1 January 2025 and to be completed no later than 31 December 20295. The titleholder also applied for suspension and extension of the Permit Year 3 work program obligation to drill one well during the reporting period. The Company has no exposure to any future costs associated with this permit, including to the cost of drilling the exploration well. Beehive will test a large Carbonate Platform Prospect similar to that defined by the Company in the adjacent exploration permits NT/P87 and WA-544-P. Figure 5 – The location of WA-488-P relative to the Company’s other licence areas in the Joseph Bonaparte Gulf. 3 See ASX announcement dated 14 August 2018. 4 See ASX announcement dated 24 August 2020. 5 See NOPSEMA website for more information: https://info.nopsema.gov.au/environment_plans/678/show_public. 15 Melbana Energy Limited Annual Report 2026
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