Investing.com -- Shares in Galp Energia (ELI:GALP) jumped more than 7% Tuesday after the Portuguese energy corporation confirmed a new discovery at its Mopane-3X well offshore Namibia.
Preliminary results indicate significant light oil and gas-condensate columns in the AVO-10 prospect, along with light oil columns in AVO-13 and deeper sand layers.
Galp said the reservoirs are found in high-quality sandstones, with log data confirming strong porosity, high pressure, and good permeability. Initial fluid samples, sent for lab testing, show low oil viscosity and minimal CO2 and H2S concentrations.
"Galp’s successful fifth exploration well in Namibia will be well-received after a negative reaction to the fourth appraisal well and increasing concerns around commerciality of broader play in the Namibia Orange basin,” Jefferies analysts commented.
The broker added that the well could help de-risk the estimated 10 billion boe resource in place for the Mopane Complex and strengthen the case for a multi-FPSO development.
The campaign was carried out on blocks 2813A and 2814B under Petroleum Exploration License 83 (PEL 83). Galp operates the license with an 80% stake, while Custos Energy and Namibia’s state oil company, NAMCOR, each hold 10%.
The license is located near multiple oil and gas discoveries made by major energy firms, including TotalEnergies (EPA:TTEF), Chevron (NYSE:CVX), Shell (LON:SHEL), and Woodside (OTC:WOPEY). Custos Energy describes the area as one of the most promising emerging oil and gas regions globally.
Data from the well will now be integrated into the reservoir model to guide future exploration and development planning.
A proprietary 3D seismic acquisition campaign is expected to wrap up in the first quarter of 2025, with data processing to follow.
Galp shares, leading the STOXX 600 index on Tuesday, are set for their strongest daily gain in ten months.