Galp Energia’s shares rose 6.7% after confirming a new exploration discovery at Mopane-3X offshore Namibia. Preliminary results show significant light oil and gas condensate resources. Analysts view this as a positive turnaround, potentially enhancing commercial viability and development plans in the region, while also contributing to Galp’s strong position in the STOXX 600 index.
Galp Energia (GALP) saw its shares increase by 6.7% following the confirmation of a new exploration discovery at the Mopane-3X well located offshore Namibia. The company announced that preliminary data indicates the presence of light oil and gas condensate columns within the AVO-10 prospect, in addition to significant light oil columns found at AVO-13 and deeper within high-quality sandstone formations.
Following this discovery, Jefferies noted that Galp’s fifth exploration well in Namibia should help alleviate previous negative sentiments surrounding their fourth appraisal well and address growing concerns regarding the commercial viability of the wider play in the Namibian Orange basin. The broker emphasizes that this result could effectively reduce the risks associated with the estimated 10 billion barrels of oil equivalent (boe) resources within the Mopane Complex, thereby reinforcing the case for a multi-Floating Production Storage and Offloading (FPSO) development.
Furthermore, RBC has pointed out that this latest update could pave the way for a second hub, thereby making a farm-down of assets more likely. The resulting market reaction placed Galp’s shares at the forefront of the STOXX 600 (SXXP) index, marking a potential best performance day in almost ten months.
Galp Educação’s recent positive exploration results in Namibia have significantly boosted its stock performance, leading to a substantial increase in share value. Analysts view this discovery as a critical step toward commercializing the substantial resource potential in the Mopane Complex, while also suggesting that further development opportunities may arise from this success. Overall, the favorable market response indicates growing confidence in Galp’s position within the energy sector.
Original Source: www.tradingview.com
