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- Melbana Energy (MAY) has begun drilling its Zapato-1 exploration well in Cuba on schedule
- The well is the second in the company’s two-well program as part of its operations at the onshore Block Nine production sharing area
- While the initial well, Alameda-1, twinned a previous well that flowed hydrocarbons, Zapato-1 will test a structure believed to be the source of the Motembo oil field
- According to Melbana, the target has a best-estimate prospective resource of 95 million barrels of oil and a 23 per cent chance of success
- Shares in Melbana have been trading 4.08 per cent higher at 10 cents at 2:46 pm AEST
Melbana Energy’s (MAY) share price has risen as the company begins drilling its Zapato-1 exploration well in Cuba.
The well is the second in the company’s two-well program as part of its operations at the onshore Block Nine production sharing area.
While the initial well, Alameda-1, twinned a previous well that flowed hydrocarbons, this second well will test a structure believed to be the source of the Motembo oil field.
Melbana said it had assessed Zapato as a large carbonate duplex structure along-strike from the Motembo discovery, which produced a light oil.
According to Melbana, the target has a best-estimate prospective resource of 95 million barrels of oil and a 23 per cent chance of success.
Drilling has begun on schedule following Melbana’s announcement on May 13 that a drill rig had arrived at the site.
Block 9 lies in close proximity to other producing fields, and given the access to existing infrastructure, Melbana said a discovery could be developed quickly and cheaply.
The total drilling campaign is estimated to cost in excess of $42.2 million, with Africa’s second-largest oil producer, Sonangol, funding 85 per cent of the costs to acquire a 70 per cent interest in Block 9.
Shares in Melbana were up 4.08 per cent and trading at 10 cents at 2:46 pm AEST.
