Yahoo Finance Galp Energia (GLPEY) Taps Into Vast Hydrocarbon Reserves
Galp Energia SGPS SA GLPEY, the Portuguese multinational energy company, has made significant oil discoveries in Namibia’s Orange Basin. It has completed the first phase of exploration of the Mopane field in the Petroleum Exploration License (PEL) 83 and estimated that the field could contain nearly 10 billion barrels of oil.
PEL 83 is operated by Galp Energia, which owns an 80% stake along with its partners, National Petroleum Corporation of Namibia (NAMCOR) and Custos Energy, who hold 10% each. Sintana owns an indirect stake in PEL 83 through Custos Energy.
The company conducted testing operations in the Mopane 1X well in January and the Mopane 2X well in March. For the Mopane 1X well, oil columns were discovered on two levels, AVO-1 and AVO-2. For the Mopane 2X well, oil columns were found in AVO-3, AVO-1 and a deeper target.
Notably, during the Mopane 2X well discovery, it was found that AVO-1 had the same pressure regime as in the Mopane-1X discovery well, around 8 km to the east. This confirmed the lateral extension of the well.
Sintana stated that the reservoir’s log measures indicate favorable porosity levels, high pressures and significant permeabilities within large hydrocarbon columns. Fluid samples from the site show very low oil viscosity. Moreover, it contains minimal CO2 and no H2S concentration.
The test conducted at the Mopane exploration well has shown that flows (achieved during the process) reached the maximum permitted limit of approximately 14,000 barrels of oil equivalent per day (boe/d), which positioned Mopane as a significant commercial discovery.
As mentioned previously, the Mopane complex is believed to contain at least 10 billion boe in hydrocarbon reserves. The company noted that this estimate does not consider any additional exploration and appraisal wells.
The data obtained from the Mopane drilling campaign will undergo rigorous analysis and then be integrated into an updated reservoir model. The reservoir model will serve as the foundation to refine the operator’s short-term drilling plan.
Namibia has the potential to emerge as a new revenue source for Galp Energia. The company currently has substantial investments off the coast of Brazil. Additionally, it is also involved in a natural gas project in Mozambique's Rovuma basin. GLPEY had previously demonstrated its interest in initiating a process to attract additional investors to its projects in Namibia, as it believes that these projects could reach a large scale.
Zacks Rank and Key Picks
Currently, GLPEY has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the energysector are SM Energy SM, Hess Corporation HES and Sunoco LP SUN. SM Energy and Hess presently sport a Zacks Rank #1 (Strong Buy) each, while Sunoco carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior- year reported figure, signaling a bright production outlook.
Hess is a leading upstream energy company with its operations focused on the prolific resources offshore Guyana. The company has made significant oil discoveries in the Stabroek Block, off the coast of Guyana. These discoveries have totaled more than 11 billion barrels of oil equivalent in gross recoverable resources, adding to Hess’ production potential.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than that of the composite stocks in the industry, providing unitholders with consistent returns.
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