Galp has discovered significant amounts of light oil and gas condensate in its fifth well in Namibia’s Mopane field, driving a 7% rise in its shares. Preliminary data indicates high-quality reservoirs, increasing confidence in the estimated 10 billion barrels of oil equivalent in the region. The company is considering selling half of its stake in the exploration license while pursuing future development opportunities.
Galp, the Portuguese oil company, announced a significant oil and gas discovery at its fifth well in Namibia’s Mopane field. This new find has led to a surge in Galp’s share prices, reflecting investor confidence in the potential for future exploration in this area. The Mopane structure is estimated to contain around 10 billion barrels of oil equivalent, enhancing Galp’s position in the energy market.
In 2024, Galp drilled four exploration wells in the northwest section of the Mopane complex, followed by the Mopane-3X well, located 18 km from the first well, which focuses on the southeast area. This drilling targeted two stacked geological prospects, AVO-10 and AVO-13, as well as a deeper sand layer at a water depth of 1,200 meters.
Initial data from the Mopane-3X well indicates the presence of light oil and substantial gas condensate, confirming the quality of the geological formations. The findings highlight high pressure, good permeability, and low viscosity of the oil, all factors that are beneficial for extraction processes. Galp’s shares rose 7% following this announcement, outperforming the pan-European Stoxx 600 index.
According to Jefferies, a financial services company, this well strengthens the initial resource estimate of 10 billion barrels of oil equivalent for the Mopane Complex and supports the development of a Floating Production Storage and Offloading (FPSO) system. Galp is also exploring partnership opportunities and plans to sell 50% of its operating stake in Mopane’s Petroleum Exploration Licence 83, although they are not in a hurry to finalize such deals.
Galp’s recent discovery in Namibia’s Mopane field not merely confirms significant oil presence but also enhances its future exploration prospects. The successful drilling of the Mopane-3X well adds value to its operations, as reflected in the 7% increase in share prices. Plans to sell a stake in the exploration license further underscore Galp’s strategy for developing its resources effectively.
Original Source: www.tradingview.com
