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Shares rise as oil is found in Mopane's Galp new well

Shares rise as oil is found in Mopane's Galp new well

The Portuguese oil company Galp announced on Tuesday that it had discovered significant amounts of light oil and condensate gas in a well at Namibia's Mopane Field, creating new exploration opportunities. This has sent its shares sharply up.

Initial estimates of the Mopane oil and gas discovery by Galp were at least 10 billion equivalent barrels.

The company has drilled four wells in 2024 in order to explore and appraise the first hub of the Mopane Complex in the northwest region. A fifth well was drilled last month in the southeast region.

In a press release, it said that the new Mopane-3X well was 18 km away from the original and targeted two prospects, AVO-10, and AVO-13, as well as a deeper sand in 1,200 metres of water depth.

The report also noted that the oil viscosity was low and there were high levels of pressure and permeability.

Galp shares rose 7% during morning trading, leading the Stoxx 600 pan-European index.

Jefferies stated in a research report that the well would de-risk the resource estimate of 10 billion boe for the Mopane Complex, and support the case to develop a Multi-Floating Production Storage Offloading Development.

Galp wants to sell half its 80% stake of Mopane’s Petroleum Exploration Licence 83, but it says it's not in a hurry. (Reporting and editing by David Evans; Sergio Goncalves, Joao Vicente Mauicio)

(source: Reuters)