Why Melbana’s Amistad-2 Drilling Could Transform Its Cuban Oil Play
Melbana Energy is set to commence drilling the Amistad-2 well in Cuba, aiming to boost production and prepare for its first crude export later this year.
- Rig mobilised for Amistad-2 with drilling to start mid-September
- Over 30,000 barrels of oil currently in inventory from Alameda-2 well
- Permitting and civil works completed for Amistad-3, with further 2026 wells planned
- Successful $7 million placement to fund ongoing operations
- Trial crude export planned before year-end to test logistics and revenue generation
Rig Mobilisation and Drilling Plans
Melbana Energy Limited (ASX, MAY) has announced the mobilisation of a drilling rig to commence operations on the Amistad-2 production well, located on Block 9 PSC in Cuba, where it holds a 30% stake. The company expects to begin drilling in mid-September 2025, with results anticipated by mid-October. This marks a significant step forward after several months of delays caused by logistical challenges, including hurricane damage and power outages in Cuba.
The Amistad-2 well is planned to reach a total depth of 1,125 metres, targeting fractured carbonate reservoirs interpreted from seismic data. If successful, the well will be tied into an on-site production facility, potentially accelerating oil output from the block.
Building Inventory and Export Plans
Steady production from the Alameda-2 well has allowed Melbana to accumulate over 30,000 barrels of oil in storage. The company is holding production rates deliberately low to gather reservoir data and avoid interference with the upcoming Amistad-2 drilling. With the addition of Amistad-2’s output, Melbana expects to increase inventory levels, enabling larger and more frequent cargo shipments.
While earlier plans for a trial crude export were postponed due to port issues and unfavorable shipping economics, conditions have improved. Melbana now aims to conduct its first export before the end of 2025, which will be a critical milestone for revenue generation and operational validation.
Future Development and Funding
Preparations for the Amistad-3 well are well advanced, with permits secured and civil works completed. Amistad-3 will target a deeper section of the reservoir and may help de-risk adjacent structures, potentially expanding the field’s productive footprint. Additionally, Melbana is progressing permits for multiple wells planned for 2026, indicating a clear development runway.
To support these activities, Melbana recently completed a $7 million placement, bolstering its financial position to manage the costs associated with delays and the forward work program. The company is also exploring options for smaller, more flexible drilling rigs to enhance operational control and reduce future scheduling risks.
Strategic Positioning and Industry Engagement
Melbana and its joint venture partner Sonangol are co-hosting the Cuba Energy Summit 2025 in Madrid this October. This event aims to showcase investment opportunities in Cuba’s upstream oil and gas sector, as well as renewable energy prospects, positioning Melbana at the forefront of international industry discussions.
Overall, Melbana’s operational update signals a renewed momentum in its Cuban operations, with drilling activity resuming and a clear path toward production growth and export readiness. The coming months will be critical in validating reservoir potential and translating inventory build into tangible revenue streams.
Bottom Line?
As drilling resumes and export plans firm, Melbana’s Cuban venture enters a pivotal phase with market eyes watching closely.
Questions in the middle?
- Will Amistad-2 meet production expectations and how will it impact overall output?
- How quickly can Melbana ramp up exports and what pricing environment will it face?
- What are the risks and timelines associated with deploying smaller rigs for 2026 drilling?
