Melbana Energy (MAY) has reached a depth of 2150 metres at the side-track hole in its Zapato-1 well within the Block 9 contract area, onshore Cuba.

Further, the company said the side-track hole is still in the overburdened.

Melbana said the pre-drill prognosis was for the target formation to be intersected around a 2650-metre measured depth. However, information gained from drilling suggested the formation could be encountered around 300 metres higher.

Despite losing drill time due to debris recovery from the well bore after the failure of a drilling bit, drilling has been successful and the new bit is drilling ahead at a “satisfactory” rate.

Melbana also acknowledged the tragic fire that occurred at the Matanzas oil terminal in Cuba last week. The company offered its condolences to the families of individuals who died in the fire.

“The incident shocked and saddened all of us,” the company said.

Melbana stated that its operations were not impacted by the tragedy.

Shares in Melbana were trading steady at 9.5 cents as of 2:11 pm AEST.