Australian operator Melbana Energy has modified its drilling plans for the Block 9 production sharing contract onshore Cuba following the disappointing results of its Amistad-2 well. The well was drilled to a total depth of 2000 meters but was completed with no oil recovered. While the primary target was encountered deeper than anticipated and the reservoir was found to be wet and highly productive, it did not yield oil.

Analysis and Revised Drilling Strategy

The company is currently conducting a 2D seismic survey and analyzing data from Amistad-2 to improve sub-surface imaging and geological understanding before firming up future well targets. The executive chairman stated that the well's location was favorable, being near to and updip of known oil, and data gathered during drilling suggested excellent reservoir characteristics and the presence of hydrocarbons. However, the company requires more time to study the data and has deemed it premature to proceed with drilling Amistad-3, the next well originally scheduled.

New Drilling Focus: Amistad-11

Instead, Melbana has mobilized its drilling rig to drill Amistad-11. This well is designed as an updip twin of Alameda-2, the company's most successful production well in Block 9 to date. Alameda-2 originally produced over 1200 barrels of oil per day, but its production rate dropped to less than 300 bpd after a workover attempt was only partially successful. The company considered re-entering Alameda-2 or drilling a sidetrack but concluded that a new well incorporating all fluid management and well design learnings offers the highest probability of success.

Well Design and Timeline

Amistad-11 is expected to be spudded before the end of November and completed by year-end, subject to necessary permits and approvals. The well will kick off at a shallower depth than Alameda-2 to achieve the desired separation at the optimum reservoir depth and will then drill deeper to a total depth of 1000 meters. The company expressed high confidence that this new well can be brought online at an improved production rate before the end of the year.

Block 9 Context and Commercial Agreements

The Block 9 PSC covers over 2344 square kilometers on Cuba's north coast, situated in a proven hydrocarbon system along trend with the multibillion-barrel Varadero oilfield. The block has an estimated prospective resource of 676 million barrels of oil. Melbana is in the final stages of formalizing a joint marketing and sales agreement with its Block 9 stakeholders to export 100% of production. Melbana holds a 30% operated interest in Block 9, with the majority 70% held by Angolan national oil company Sonangol.