SYDNEY - Melbana Energy Limited (ASX: MAY) ('Melbana' or the 'Company') provides the following summary in relation to its activities during the quarter ended 31 December 2021.

Cuba - Block 9 (Melbana 30%, Operator)

On 13 September 2021, Melbana announced the spudding of the Alameda-1 well, marking the commencement of the Company's Block 9 drilling program which comprises two exploration wells (Alameda-1 & Zapato-1) testing four separate targets with a Total Prospective Resource of 236 million barrels of oil (Best Estimate)2. These are the 'U1/Amistad', 'N' and 'I/Alameda' prospects for Alameda-1 and the Zapato prospect for Zapato-1. Melbana is the operator and has a 30% interest in Block 9, but is required to meet only 15% of the costs of this two well drilling program (i.e., it has a 15% working interest and a 15% free carry) under the terms of the farm-in agreement it reached with Sonangol, the national oil company of Angola (its partner in Block 9).

Unexpected Oil Zone encountered from 454m

On 4 October 2021 the well intersected encouraging hydrocarbon shows (described as good by Melbana's personnel on site) just below the first casing point at 454 metres, when moveable oil was reported at surface within the mud and cuttings samples. The oil, which appears to be lighter than that normally seen at this depth, was accompanied by elevated gas readings. Drilling continued through the shallow limestones and minor clastic sediments, with similar shows persisting over a gross interval of about 670 metres.

The intersection, which was unexpected, includes the interval of the anticipated 'U1' secondary objective, through which excellent hydrocarbon shows were reported. Variable oil shows have continued to be encountered below this interval.

The main targets of this well are still below the current depth and hence, any further evaluation of deliverability and lateral extent of this new potential oil zone won't be considered until after the conclusion of drilling. Cementing and mud weight issues resolved

Issues with cement set and curing which affected the placement of the liner were resolved

The drilling intersected additional oil and gas shows around 1,800m, about 350m shallower than expected, which coincided with an increase in pressure and an unanticipated need to increase mud weight. Drilling was paused on 9 November 2021 at 1,892m whilst additional barite3 was sourced and delivered.

Drilling continues

As announced on 19 January 2022, drilling has reached a current depth of 2,622 mMD. The next target is the primary objective called 'N', which is anticipated to be encountered starting at 3,000 mMD, followed by the deepest (and largest) primary objective called 'Alameda' (expected at 3,600 mMD).

Contact:

Mr Andrew Purcell

Tel: +61 2 8323 6600

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