Cuba Block 9 (Melbana 30%) Block 9 lies on Cuba’s northern coast, within a proven oil province and along trend from the Varadero field. The year’s events materially constrained the Company’s ability to fund the work program and deal with its contractual counterparty. Figure 1 – Newly acquired seismic data showing the missed primary objective. AMISTAD-2 DEVELOPMENT WELL Amistad-2 was the first purpose designed development well on Block 9. It was spudded on 18 September 2025 from Pad 9, approximately 850 metres southwest of Alameda-2, to test Unit 1B about 200 metres up dip of the interval that averaged 1,235 barrels of oil per day on drill stem test in Alameda-2. The well used a simplified target trajectory, open hole completion and Melbana purpose formulated RDF reservoir drilling fluid. The pre-drill structural shape was confirmed, but the primary hanging wall target interval had been eroded and replaced with sediment. Limestone was encountered in the footwall and approximately 600 metres below prognosis. With drilling conditions remaining good, the well was extended from 1,125 metres to 2,000 metres measured depth, intercepting 169 metres of highly porous net reservoir. (See Figure 1) Well logs indicated good reservoir quality and reasonable oil saturation. Flow testing confirmed high permeability but recovered no oil. The well data informed the subsequent seismic and structural reinterpretation. SEISMIC AND STRUCTURAL REINTERPRETATION Melbana completed low cost 2D seismic and LiDAR surveys over the field. Preliminary processing indicated that the new seismic could materially improve on the legacy data used for well targeting. Integrating those surveys with Amistad-2 drilling data produced a revised structural model of greater Alameda anticlinorium. The interpretation places Amistad-2 in a breached forelimb from which hydrocarbons had migrated, explaining the absence of recovered oil despite reservoir quality and permeability. This work improves the basis for selecting future well locations but does not remove the need for further appraisal, funding and regulatory certainty. (See Figure 2) Figure 2 – New subsurface model for the upper (Amistad) sheet. The planned 2026 3D seismic program was deferred when the joint operating partner was declared to be in default. AMISTAD-1 RETURNED TO FLOW Production from Amistad-1 was paused ahead of the proposed Amistad-11 well. When reopened to relieve wellhead pressure, Amistad-1 flowed oil to surface unassisted, indicating recharge during the shut-in period and supporting the new proposed Amistad-11 production well. JOINT OPERATION DEFAULT AND PROPOSED ASSIGNMENT In November 2025, Sonangol Pesquisa e Produção S.A. (Sonangol) advised that it could not meet its Block 9 funding obligations and requested that Amistad-11 be deferred to its 2026 budget. Melbana demobilised personnel and released or stood down equipment and contractors, announcing the deferral on 5 December 2025. The failure to meet cash call obligation under approved work programs in the required timeframes, constituted a default under the Joint Operating Agreement. When the default remained unremedied in April 2026, the partner 2 Figure 1 – Newly acquired seismic data showing the missed primary objective Figure 2 – New subsurface model for the upper (Amistad) sheet 2 Figure 1 – Newly acquired seismic data showing the missed primary objective Figure 2 – New subsurface model for the upper (Amistad) sheet 07 Melbana Energy Limited Annual Report 2026
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