In a statement posted on its website on Sunday, Galp announced that it and its partners completed the first phase of the Mopane exploration campaign with the conclusion of the Mopane-1X well testing operations.
“The flows achieved during the well test have reached the maximum allowed limits of 14,000 barrels of oil equivalent per day, potentially positioning Mopane as an important commercial discovery,” Galp said in the statement.
“In the Mopane complex alone, and before drilling additional exploration and appraisal wells, hydrocarbon in-place estimates are 10 billion barrels of oil equivalent, or higher,” it added.
Galp noted in the statement that, in January, the Mopane-1X well discovered “significant oil columns containing light oil in high-quality reservoir sands at two different levels: AVO-1 and AVO-2”. The rig then moved to the Mopane-2X well, “where in March significant light oil columns were discovered in high-quality reservoir sands across exploration and appraisal targets: AVO-3, AVO-1, and a deeper target,” Galp highlighted.
“In particular, the Mopane-2X well found AVO-1 to be in the same pressure regime as in the Mopane-1X discovery well, around 8km to the east, confirming its lateral extension,” it added.
In its statement, Galp said all acquired data from the current Mopane drilling campaign will be analyzed and integrated into an updated reservoir model.
“The model will serve as the basis to refine Galp’s near-term drilling plan to further explore, appraise, and develop the wider Mopane complex,” it added.
On April 19, Galp’s share price closed at EUR 16.04 ($17.14). On April 22, it closed at EUR 19.35 ($20.67). At the time of writing, it is trading at EUR 20.04 ($21.41).
On January 2, Galp announced that it had initiated the drilling campaign in PEL 83, offshore Namibia, on November 17, 2023.
“The first well, Mopane-1X, indicates preliminary signs of hydrocarbon presence,” it said at the time.
“Drilling and data acquisition campaigns are underway, making any conclusion premature before operations are completed and results assessed,” it added.
On January 10, Galp announced that it had drilled and logged the first exploration well – Mopane-1X – in block PEL83.
“Building on the previous announcement dated January 2, Galp now confirms the discovery of a significant column of light oil in reservoir-bearing sands of high quality,” it said in that statement.
On January 26, Galp said it had successfully drilled, cored, and logged a deeper target – AVO-2 – of the Mopane-1X well in block PEL83.
“In AVO-2, Galp has also discovered a significant column of light oil in reservoir-bearing sands of high quality,” it noted at the time.
On March 14, Galp said it had successfully drilled the Mopane-2X well to its designed depth.
“Drilling encountered a significant column with light oil in reservoirs of high quality,” it added.
“The AVO-3 exploration target, the AVO-1 appraisal target, and a deeper target were fully cored and logged,” it continued.
Galp has an 80 percent operated interest in the asset. NAMCOR and Custos each hold a 10 percent stake.
Galp’s upstream portfolio in Namibia consists of PEL83, according to the company’s website, which highlights that the license covers an area of almost 10,000 square kilometers in the Orange Basin, located in the southern part of Namibian waters, close to the border with South Africa.
Namibia’s upstream oil and gas sector is on the verge of rapid transformation, an overview posted on the U.S. International Trade Administration website, which was last updated on February 29, states.
“Significant discoveries made in the country’s Orange Basin in 2022 and 2023 – which include the Graff-1, Venus-1, and Jonker-1X exploration projects – have attracted oil and gas supermajors including TotalEnergies, Shell, Chevron and ExxonMobil, as well as multinational energy corporations such as Galp and QatarEnergy,” the statement adds.
“According to Namibia’s National Petroleum Company NAMCOR, fields in Namibia’s offshore Orange Basin (where Total and Shell drilled multiple exploratory wells) hold 11 billion barrels of light oil and 2.2 trillion cubic feet of natural gas reserves,” it notes.
“If proven commercially viable, the finds could unlock an unprecedented revenue windfall for the Namibian government, more than doubling the country’s GDP by 2040,” it continues.
To contact the author, email andreas.exarheas@rigzone.com
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