Melbana Energy Limited · ASX:MAY
Melbana Energy — Shareholder Meeting (November 2023)
48 slides from Melbana Energy's shareholder meeting presentation, Nov 16, 2023
Slide 1: Annual General Meeting
Annual General Meeting 16 November 2023
Slide 2: Disclaimer
Disclaimer Summary of information: This presentation contains general and background information about Melbana will form the basis of any contract or commitment. This presentation is not a prospectus. Offers of securities in Energy’s activities current as at the date of the presentation and should n
Slide 3: Index
Index 1. Corporate, finances & the year in review 2. Operations update ‣ Cuba ‣ Australia 3. HSE & community activities 4. Summary 3
Slide 4: Corporate Aspects
é Melbana Energy Corporate Aspects
Slide 5: Corporate Overview
Corporate Overview As at 15 November 2023 Company Information Andrew Purcell Michael Sandy Dean Johnstone Chris Thompson Ken Hendrick Executive Chairman Non-Executive Director Senior Geoscientist Chief Operating Officer Implementation Manager Objective Melbana Energy Limited Investment banking 40 ye
Slide 6: Our team is growing
Our team is growing Dr. Duncan Lockhart Uno Makotsvana Cate Friedlander Dr. Chris McKeown Chris Thompson Exploration Manager Chief Financial Officer General Counsel Chief Commercial Officer Chief Operations Officer appointed Q3 2022 to appointed Q4 2022 to appointed Q4 2022 to appointed Q2 2023 to a
Slide 7: Share Price Performance
Share Price Performance 1 year 2 year 16 % appreciation 156 % appreciation 7
Slide 8: Our reputation is growing
Our reputation is growing Global Energy Week London, June 2023 ‣ Presented at prestigious conference attended by heads of state, oil ministries and investors GeoExpro Article London, August 2023 ‣ Provided input into article on GeoExpro; a geoscience magazine with a global reach RUI Good Oil Confere
Slide 9: Our reputation is growing
Our reputation is growing SEAOCC Conference Darwin, September 2023 ‣ Attended at NT focused event to talk to explorers, regulators and offtakers about the Hudson opportunity Scout Meetings Perth, Singapore and London ‣ Regional reps attending scout meetings on our behalf; presenting our opportunitie
Slide 10: Transformational Year
Transformational Year A lot has happened since last year’s AGM Corporate Cuba Australia ‣ Strategy focused to become ‣ Alameda-2 confirms shallow, ‣ Billion-barrel Beehive prospect to be $1b company high quality development project ‣ Alameda-2 early production drilled as early as 2024 by major ‣ Adj
Slide 11: More to come
More to come Next six months Further six months Eighteen months and beyond ‣ Alameda-2 production to continue ‣ Alameda-3 deep results interpreted ‣ Block 9 field development ‣ Alameda-3 appraisal well ‣ Block 9 deep resource update ‣ Block 9 development wells ‣ Block 9 shallow resource update ‣ Blo
Slide 12: Operations Update: Cuba
é Melbana Energy Operations Update
Slide 13: Oil discovered to date
Oil discovered to date Alameda-1 (TD of 3,916 mMD) intercepted three geologically independent reservoirs, each with moveable oil under high pressure, that were subsequently independently assessed1 to contain oil in place of over 5 billion barrels Total 267 88 Amistad 1, 2 & 3 Alameda Marti million b
Slide 14: 2023 appraisal operation success
2023 appraisal operation success First Appraisal Well Second Appraisal Well Alameda-2 Alameda-3 ‣ Goal was to log, core and test ‣ Drilling to commence following all three units of the Amistad Alameda-2 formation, intersected during the drilling of Alameda-1 ‣ Test the Alameda and Marti formations b
Slide 15: Outcome: we have a project in the upper sheet
Outcome: we have a project in the upper sheet Equipment for early production from Alameda-2 Unit 1B Oil in the tanks from DST-4 (Unit-1B) First tanker of oil from DST-4 (Unit-1B) 15
Slide 16: Upper Sheet project runway
Upper Sheet project runway Upper Sheet Marketable Oil Upper Sheet > 88mmbl ?? Upper Sheet Cashflow ‣ Unit 1B: 19° API, 30cP, low S oil ‣ 88 mmbbl booked on 100m Net Pay ‣ Oil properties of exportable grade ‣ Unit 1B: 1900 bbl/d flow rate (max) ‣ Net Pay now 615m (inc. fractures) ‣ Goal to reach 5000
Slide 17: Alameda-3 to be drilled by same team/rig as Alameda-2
Alameda-3 to be drilled by same team/rig as Alameda-2 ‣ A2: did well, on time and Alameda-2: Time vs. Depth Chart (Plan vs Actual) under budget ‣ We learned from last time, particularly HSE ‣ No LTI in Alameda-2 operations ‣ Low NPT (8.7%) ‣ Key point: not drilling into the unknown ‣ Alameda-3 will
Slide 18: Alameda-3 time vs depth plan
Alameda-3 time vs depth plan Upgraded 10,000 psi BOP wellhead Installed after setting 18-5/8” Built to handle 18 5/8” casing casing to drill 17-1/2” section at up to 10,000 psi 18
Slide 19: Alameda-2 Unit 1B early production findings
Alemeda-2 Unit 1B early production findings Findings so far ‣ Produced for a total of 10 days for data on To understand reservoir and logistics performance ‣ Properties of the reservoir ‣ Flow peaked at 1,183 bopd ‣ Pressure support ‣ 20 tanker loads from early production of Unit 1B ‣ Max and sustai
Slide 20: Alameda-3 drilling and testing plans
Alameda-3 drilling and testing plans ‣ Planned as a twin of the original Alameda-1 well ‣ Drilled parallel from the same pad to the NE ‣ Surface location offset 25m to the SE ‣ Kick off at ~1560mMD ‣ BH location offset approx 60m to the E (well collision avoidance) ‣ TD 3835mMD, ~ 40mTVD above high
Slide 21: Alameda-3 operations / test sequence
Alameda-3 operations / test sequence ‣ Run and Cement 13-3/8” Casing to isolate higher 13-3/8” Casing Shoe pressure Unit-3 intervals from shallower zones ‣ Once 13-3/8” casing cemented production can continue in Alameda-2 Alameda Reservoir Marti Reservoir 21
Slide 22: Alameda-3 operations / test sequence
Alameda-3 operations / test sequence ‣ Drill 17-1/2” Hole to top of Unit-3 Unit-3 Alameda Reservoir Marti Reservoir 22
Slide 23: Alameda-3 operations / test sequence
Alameda-3 operations / test sequence ‣ Drill ~100m into Unit-3 and run Test-1 in open hole 13-3/8” Casing Shoe Unit-3 DST-1 Open Hole Alameda Reservoir Marti Reservoir 23
Slide 24: Alameda-3 operations / test sequence
Alameda-3 operations / test sequence ‣ Drill 12-1/4” hole to top of Alameda Reservoir Interval 13-3/8” Casing Shoe Unit-3 DST-1 Open Hole Alameda Reservoir Marti Reservoir 24
Slide 25: Alameda-3 operations / test sequence
Alameda-3 operations / test sequence ‣ Set 9-5/8” Casing to secure the well and protect 13-3/8” Casing Shoe intervals already Unit-3 DST-1 Open Hole drilled from higher pressure 9-5/8”” Casing Shoe Alameda Reservoir Marti Reservoir 25
Slide 26: Alameda-3 operations / test sequence
Alameda-3 operations / test sequence ‣ Drill 8-1/2” hole to base of Alameda 13-3/8” Casing Shoe Reservoir Interval Unit-3 DST-1 Open Hole 9-5/8”” Casing Shoe Alameda Reservoir Marti Reservoir 26
Slide 27: Alameda-3 operations / test sequence
Alameda-3 operations / test sequence ‣ Set 7” Liner with open annulus and external 13-3/8” Casing Shoe casing packers to Unit-3 DST-1 Open Hole isolate potentially 3 zones within the Alameda Reservoir Interval 9-5/8”” Casing Shoe Alameda Reservoir Marti Reservoir 7” Casing Shoe 27
Slide 28: Alameda-3 operations / test sequence
Alameda-3 operations / test sequence ‣ Drill to Total depth within the Marti Reservoir 13-3/8” Casing Shoe Interval Unit-3 DST-1 Open Hole 9-5/8”” Casing Shoe Alameda Reservoir Marti Reservoir 7” Casing Shoe TD ~3835mMD 28
Slide 29: Alameda-3 operations / test sequence
Alameda-3 operations / test sequence ‣ Set 4-1/2” Slotted liner over Marti Reservoir Interval 13-3/8” Casing Shoe Unit-3 DST-1 Open Hole Alameda Reservoir Marti Reservoir 7” Casing Shoe 4-1/2” Slotted Liner TD ~3835mMD 29
Slide 30: Alameda-3 operations / test sequence
Alameda-3 operations / test sequence ‣ Run Test-2 in the Marti Reservoir Interval through 13-3/8” Casing Shoe the slotted liner Unit-3 DST-1 Open Hole Alameda Reservoir Marti Reservoir 7” Casing Shoe 4-1/2” Slotted Liner DST-2 TD ~3835mMD 30
Slide 31: Alameda-3 operations / test sequence
Alameda-3 operations / test sequence ‣ Set a removable bridge plug to isolate Marti 13-3/8” Casing Shoe Reservoir Interval Unit-3 DST-1 Open Hole from lower pressured Alameda Reservoir Interval Alameda Reservoir Marti Reservoir 7” Casing Shoe 4-1/2” Slotted Liner DST-2 TD ~3835mMD 31
Slide 32: Alameda-3 operations / test sequence
Alameda-3 operations / test sequence ‣ Provision to perforate and test up to 3 13-3/8” Casing Shoe Alameda Unit-3 DST-1 Open Hole Reservoir Interval zones either separately or comingled depending on well results Alameda Reservoir DST-5 Perforated DST-4 Perforated DST-3 Perforated Marti Reservoir 7”
Slide 33: Alameda-3 operations / test sequence
Alameda-3 operations / test sequence ‣ Complete Best zone for Production 13-3/8” Casing Shoe Unit-3 DST-1 Open Hole Alameda Reservoir DST-5 Perforated DST-4 Perforated DST-3 Perforated Marti Reservoir 7” Casing Shoe 4-1/2” Slotted Liner DST-2 TD ~3835mMD 33
Slide 34: Field Development Planning
é Melbana Energy Field Development Planning
Slide 35: Forward plan
Forward plan Step 1 Step 2 Step 3 Step 4 Studies Underway Field Appraisal Near term development Full field development ‣ Geological, engineering, ‣ Appraisal drilling (including ‣ Convert appraisal wells to ‣ Drill further development commercial & marketing Alameda-3), integrate production wells to
Slide 36: Amistad Unit 1B conceptual development
Amistad Unit 1B conceptual development * 40,000 Unit 1B development plan including 35,000 contributions from A-2 and A-3 30,000 25,000 20,000 bopd 15,000 10,000 5,000 - 2024 2025 2026 2027 2028 2029 2030 2031 2032 ——— Amistad Unit 1B Project ——— = 1 well drilled in Unit 1B * Conceptual plan, assumes
Slide 37: Unit 1B oil qualities export grade
Unit 1B oil qualities export grade Next six months API Gravity V Sulphur Content ‣ Unit 1B favourable characteristics of lighter density, low sulphur and low viscosity ‣ Oil characteristics study underway to understand price against regional oil price markers ‣ Discussions underway with Sulphur Cont
Slide 38: Drilling pad locations
Drilling pad locations Gonale Fart
Slide 39: Pathway to market being clarified
Pathway to market being clarified ‣ Utilise facilities at Alameda ‣ Existing trucking from Alameda to Cardenas tank farm (CTF) ‣ Conclude exclusive storage at CTF ‣ Pre-FEED study of Barge to pipeline routes to CTF Matanzas? Cardenas ‣ Pre-FEED study of Matanzas Tank Facility pipeline from Alameda S
Slide 40: Oil export options
Oil export options Existing Matanzas Supertanker Port ‣ Import and export facilities ‣ Deep water channels ‣ Situated at the mouth of the River Yumuri and River San Juan in Matanzas Bay, northern Cuba ‣ Port is formed by an inlet length of 8km and a width of 6km ‣ Deep water is located 120m from sho
Slide 41: Health Safety Environment & Community
Health Safety Environment & Community
Slide 42: Alameda-2 HSE summary
Alameda-2 HSE summary ‣ No LTI Item Unit Weekly Total Item Unit Weekly Total ‣ 1 environmental Safety Induction No. Person 9 61 Man hours (Melbana) Hrs 2,856 17,700 recordable incident Job Safety Analysis (JSA) No. 16 132 Man hours (Sherritt) Hrs 4,728 31,692 (oil spillage <20 liters) ‣ Timely dispo
Slide 43: HSE approach
HSE approach We promote self-care in both permanent and We promote self-care in both permanent and temporary We work to create a temporary workers, providing PPE according workers, we give great value to safety conversations tool box culture of safety, health to their tasks. task, safety meetings, p
Slide 44: Melbana community connections long lived
Melbana community connections long lived Knowledge and local support Supply of goods ‣ Topographic surveys of roads for ‣ Focus on local hiring, goods and maps for municipality services, e.g., installation of ‣ Investment in natural channels / fences, control of bee populations and supply of food fr
Slide 45: Operations Update: Australia
Operations Update AUSTRALIA
Slide 46: Australia optionality
Australia optionality WA-488-P WA-544-P & NT/P87 Beehive Prospect Hudson opportunity MAY Farmout Process underway ‣ Up to ‣ Melbana retains 100% of Royalty interest 1.4 billion barrels adjacent Beehive- lookalike (Hudson of oil prospect* Prospect) with up to to be drilled in 2024 ** 1.2 billion barr
Slide 47: Summary
Summary ‣ Melbana has a first-class geoscience team with record of advancing new ideas ‣ Melbana has a management team that has delivered valuable projects ‣ Melbana’s operations team has proven it can execute drilling programs ‣ Melbana is funded for Cuba appraisal drilling with no commitments for
Slide 48: Questions?
Questions? Mezzanine Floor, 388 George Street Sydney NSW 2000 Australia Telephone +61 2 8323 6600 Email admin@melbana.com Melbana Energy Limited ABN 43 066 447 952