Key Highlights

  • Melbana Energy received AUD 14.5 million from Sonangol during the September 2026 quarter, improving its available cash position.
  • Cash holdings increased to AUD 14.0 million at 30 September 2026, compared with approximately AUD 0.47 million at 30 June 2026.
  • The Cuba Block 9 project remains under care and maintenance, with operational activities affected by regulatory and sanctions-related uncertainties.
  • Melbana reported an FY2026 net loss of AUD 50.2 million, including significant Impairment and inventory write-down charges.

Melbana Energy Limited (ASX:MAY) is an Australian oil and gas exploration company with interests in Cuba and offshore Australian exploration permits. Its principal project is the onshore Block 9 production sharing contract in Cuba, where it holds a 30% participating interest and serves as operator. Recent developments have centred on recovering outstanding payments from its joint venture partner, maintaining Liquidity and assessing the regulatory conditions affecting future exploration activities.

Sonangol Payment Improves Cash Position

Melbana Energy received AUD 14.5 million from Sonangol during the September 2026 quarter, representing a significant recovery of previously outstanding obligations associated with the Block 9 project.

Of the amount received, approximately AUD 3.2 million was allocated to accrued interest, while the remaining funds were applied against outstanding cash calls.

The payment contributed to an increase in Melbana's cash holdings to AUD 14.0 million at 30 September 2026, compared with AUD 472,504 at the end of June 2026.

Despite the recovery, additional amounts remain outstanding. The company continues to assess the recoverability of these obligations while managing its financial commitments.

The payment provides additional liquidity for corporate operations and future planning. However, it does not represent a resumption of drilling or production activities at Block 9.

Cuba Block 9 Project and Regulatory Developments

Melbana's Block 9 project remains central to its exploration portfolio. The company operates the project under a production sharing contract with Cuba's state-owned oil company, CUPET.

Sonangol previously held a 70% participating interest but ceased funding its contractual obligations in November 2025.

Following the funding default, Melbana initiated arrangements for Sonangol's participating interest to be transferred to the company, subject to approval from Cuban regulatory authorities.

As of 30 September 2026, the proposed transfer had not received the required approval.

Operational uncertainty increased during June 2026 following US sanctions affecting CUPET. Melbana subsequently suspended direct support for the production sharing contract while reviewing the regulatory implications.

The Block 9 project remains under care and maintenance, and the 2026 work programme has been suspended through the end of the calendar year.

Future activities will depend on regulatory developments, funding arrangements and the company's assessment of its contractual obligations.

FY2026 Financial Performance and Asset Impairments

For the financial year ended 30 June 2026, Melbana Energy reported a net loss after tax of approximately AUD 50.2 million.

The result included a AUD 35.7 million impairment associated with its Block 9 exploration asset and a AUD 10.8 million inventory write-down.

Excluding these two charges, the remaining net loss was approximately AUD 3.7 million.

The company's net Assets declined to AUD 11.8 million at 30 June 2026, compared with AUD 55.9 million a year earlier.

During the September 2026 quarter, Melbana recorded net operating cash inflow of approximately AUD 2.2 million, supported largely by the receipt of accrued interest.

Exploration expenditure during the quarter totalled approximately AUD 0.3 million.

The company's financial position continues to reflect the effects of project delays, asset impairments and outstanding joint venture obligations.

Liquidity Management and Upcoming Operational Milestones

Melbana Energy has implemented cost-management measures, including workforce reductions, while reviewing its future operating requirements.

The company continues to manage uncertainty surrounding the recovery of outstanding amounts from Sonangol, the proposed ownership transfer and the regulatory environment affecting Cuba.

Its Australian exploration portfolio includes offshore permits WA-544-P, WA-552-P, AC/P70 and NT/P87, providing additional exploration interests beyond Block 9.

Melbana's Annual General Meeting is scheduled for 19 November 2026. The meeting will address corporate resolutions, including proposed performance rights and additional Placement capacity.

Further developments to monitor include potential Sonangol payments, Cuban regulatory decisions, the status of the Block 9 work programme and future quarterly cash-flow reporting.

Although the recent payment has improved liquidity, the timing of any operational restart remains dependent on external approvals and commercial conditions.