Melbana Energy Limited has issued an update on the planned spud date for the first of its two appraisal wells in its Block 9 Production Sharing Contract (PSC) located near the north coast of Cuba.
Melbana’s drilling contractor previously notified the company that the mobilisation of the drilling rig for Alameda-2 would take place in late March following the completion of a gas well to provide additional fuel to a power plant generating electricity for the country.
Melbana has been advised by its contractor that the first gas well has been successful and is expected to be completed in the coming week.
It expects that the energy generated from the new gas well will alleviate the acute power shortage Cuba is currently experiencing due to recent failures at other power plants and the loss of fuel at the country’s principal oil terminal in 2022.
To further meet energy demands, the company’s drilling contractor has been tasked by the Cuban Government to drill a second gas well to further boost the plant’s electricity output.
The contractor is estimating a five-week delay to the start of Melbana’s program and confirms that there can be no additional delays as the power plant will be running at nearly full capacity after the completion of the second well.
Melbana said the delay is temporary and will have no impact on its ability to deliver on its two-well appraisal drill program.
The company added that it now has an extended window to ensure that the equipment needed for the program arrives at the site before drilling starts, ensuring continuous operations that can potentially save Melbana over $1 million in operational costs.
According to Melbana Executive Chairman Andrew Purcell, even though there have been some delays, the extended timeframe is expected to be beneficial as it can potentially provide additional material and financial advantages to the company.
“We have added to our talent pool, included production and logistics expertise, undertaken extensive risk management and we could not be in better shape for what I’m sure will be a successful campaign having just spend several weeks with the team in Cuba,” he added.
The executive noted that the company would communicate progress on the drilling efforts as it nears mobilisation.
