Highlights:

• Fast-track processed 3D seismic survey data received, final data due for delivery by early March
• Data quality is excellent, improving definition of Beehive target
• Once quality control checks on final data are completed, Total and Santos have 6 months to exercise option to drill Beehive-1 well
• If option exercised, Melbana (20%) fully carried with drilling expected 3Q, 2020
• Beehive assessed by Independent Expert McDaniel & Associates to contain a best estimate prospective resource of 388 million barrels of oil equivalent

Melbana Energy Limited advises that fast-track processed data from the Beehive 3D Seismic Survey undertaken during August 2018 has been received. The final dataset is due for delivery by early March.

The quality of the 3D data is excellent with vastly improved imaging when compared to the 2D seismic data, leading to clearly improved definition of the Beehive structure and reservoir unit.

Total and Santos have an option, exercisable together or individually, to acquire a direct 80% participating interest in the permit in return for continuing to fully fund 100% of the costs of all activities until completion of the Beehive-1 well. The option is exercisable at any time, but no later than 6 months from the final processed seismic survey data being accepted by Santos, Total and Melbana.

If the option is exercised, drilling is anticipated in 3Q 2020, with Melbana estimating the cost of the Beehive-1 exploration well to be within the US$40-$60 million range. 

Melbana Energy’s CEO, Robert Zammit, said:
“The data quality of the Beehive 3D Seismic Survey is much improved over the 1999 2D data and should help Total and Santos in their decision to exercise their option to drill the Beehive-1 well. Once the final quality control checks are completed, Total and Santos have six months to exercise their option. If Total and/or Santos exercises their option to drill, Melbana retains a 20% interest in WA-488-P and is fully carried until the completion of drilling of the first well in the permit.

In December last year Melbana reached agreement with Total and Santos for them to accelerate drilling planning, fully funding initial activities including drafting of an environment plan, well concept identification and commencement of rig selection to ensure readiness for drilling in 3Q 2020 in the event the option is exercised.” 

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