The Melbana Energy Ltd (ASX: MAY) share price is off to the races today.
Shares in the ASX junior explorer are up 24.3% at time of writing, to 4.6 cents per share.
Below we take a look at the company’s latest oil exploration update that looks to be stoking ASX investor interest.
What drilling update was announced?
Melbana Energy’s share price is surging after the company reported it had intersected a “significant oil interval” at its Alameda-1 exploration well in its Block 9 contract area onshore Cuba.
Melbana said drilling overnight reached a depth of some 3,590 metres measured depth (MD) and 3,420 metres true vertical depth (TVD). At that depth “a lithology change was detected, potentially signifying the bottom of the reservoir”.
The company decided to call total depth for its current 8.5-inch section to preserve the oil already found there. It said, “The gas behaviour in this interval was better than anticipated and there have been significant oil shows present throughout on the shale shakers and in cuttings samples.”
Melbana is now preparing to log this section for a better grasp of the encountered hydrocarbons.
Commenting on the exploration, Melbana Energy executive chairman Andrew Purcell said:
This well is not affording much chance for rest for our hard-working team here on the ground in Cuba. But no one is complaining given what this well continues to tell us. We’re all looking forward to the results of the forthcoming logging program to learn more about this extensive oil interval we’ve intersected.
Melbana Energy share price snapshot
The Melbana Energy share price has rocketed 340% over the past 12 months, compared to 3% gain posted by the All Ordinaries Index (ASX: XAO).
Buoyed by soaring energy prices, which has seen crude oil trade at 7-year highs in the New Year, Melbana Energy shares are up 120% so far in 2022.
The post Melbana Energy (ASX:MAY) share price rockets 24% on ‘significant’ oil find appeared first on The Motley Fool Australia.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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