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- Melbana Energy (MAY) encounters strong oil shows in the first primary targets of its Alameda-1 exploration well onshore Cuba
- Strong oils shows and elevated gas readings have been recorded from limestones within the unit
- The Alameda-1 hole section is currently at a depth of 3,200 metres, with the second and largest primary target still ahead at an estimated 3,500 metres
- Further information will become available once wireline logs have been acquired over the interval and interpreted
- Shares are up 8.7 per cent to 2.5 cents
Melbana Energy (MAY) has encountered strong oil shows in the first primary targets of its Alameda-1 exploration well onshore Cuba.
The Alameda-1 hole section has now been drilled through the vega alta seal and is currently at a depth of 3,200 metres within the first of the primary targets, referred to as the ‘N’ sheet.
Strong oils shows and elevated gas readings have been recorded from limestones within the unit.
Free oil has been observed at the surface of the mud system, as well as increased mud gas readings and related hydrocarbon fluorescence of up to 95 per cent. To present, high-quality performances have been recorded from 3,055 to 3,200mMD.
After completing a wiper trip, drilling is continuing through the N sheet towards the prognosed base of the interval expected at 3,400 metres.
The second and largest primary target is still ahead at an estimated 3,500 metres.
Melbana Energy Executive Chairman Andrew Purcell said subsequent logs and studies will share the significance of what the company has encountered, but given the size of the structures, there is a possibility of a material accumulation of oil.
“We are very encouraged by what this well has told us to date, particularly given we have encountered oil shows now over two significant intervals with this latest area also having significant gas influx, which is a good sign that any reservoir may be well charged,” said MR Purcell.
Further information will become available once wireline logs have been acquired over the interval and interpreted.
Shares were up 8.7 per cent to 2.5 cents at 11:19 am AEDT.
