Sonangol Defaults on Block 9 Payments

Australia's Melbana Energy has reported that Angola's national oil company, Sonangol, has failed to pay its share of operational costs for Block 9 operations onshore Cuba. Melbana issued default notices to Sonangol earlier this year following repeated failures to meet cash calls totaling US$23.5 million under approved work programs. As a result, drilling of the Amistad-11 well has been deferred and remains on hold.

Deemed Withdrawal and Interest Transfer

Melbana stated that Sonangol did not respond within the given timeframe and has been notified that it is deemed to have withdrawn from Block 9. Consequently, Sonangol's 70% participating interest is to be assigned to Melbana, which will then own 100% of the block.

Operational Update and Future Plans

Melbana continues to appraise and develop the shallow Amistad oil discovery in Block 9, which has proven to be geologically complex. Executive chairman Andrew Purcell noted that data from the Amistad-2 well and seismic acquisition program have meaningfully contributed to reservoir models. A three-dimensional version of the seismic will be used to further derisk future production wells, as it can provide important data quickly and economically. Melbana is keen to drill the next well but is maintaining minimal site supervision and production operations until it once again owns 100% of Block 9. The discovered oilfield is well positioned to benefit from heightened global interest in energy security once regional political issues are resolved.