Melbana Energy Limited provided this update on preparations for the Alameda-2 well, the first of two appraisal wells planned this year in its Block 9 PSC area onshore Cuba (Melbana 30%). Preparations for the drilling of Alameda-2 are nearing completion. The final drilling approval was received this week and all required materials are now in country and in Melbana's control.

The final shipment of some additional inventory items are scheduled to arrive in Cuba in the first week of April. Melbana's drilling contractor, the same one that was used for the previous two exploration wells, has advised that the rig is expected to be released from its current project in the third week of March, following which it will commence mobilisation to the Alameda pad near the township of Marti for the drilling of Alameda-2. Civil works at the pad have been completed. The principal goal of this well is to allow oil to flow independently from each of the three productive units in this reservoir encountered by the Alameda-1 exploration well that completed last year.

Alameda-2's specific objectives are to: recover oil to surface from each of the three units of the Amistad reservoir; evaluate the quality of the recovered oil; · assess the production characteristics of these reservoirs; take cores to determine petrophysical properties; and increase reported net oil and gas pay from the current estimate of 48 metres by successfully logging the 290 metres of gross pay excluded previously. Reaching these objectives in a satisfactory manner should allow for an assessment of the commercial potential of this first reservoir and the establishment of a maiden reserve. The trajectory of Alameda-2 is the same as used for Alameda-1, other than modifying the deviation to allow Unit 3 to be penetrated in an updip structural position.