"Galp Energia expects to reveal results from its latest Namibia exploration well “really soon,” while also pushing ahead with development studies on its Mopane discovery. The Lisbon-listed player is currently drilling ahead on its Mopane-3X exploration probe which is targeting the AVO-10 and AVO-13 plays, having already established sufficient reserves in the AVO-1 reservoir to the northwest – with four previous wells – to underpin what is set to be the first of multiple development phases.
Discussing Mopane-3X, Maria Joao Carioca, one of Galp's recently appointed interim co-chief executive officers, told analysts in the company’s fourth-quarter results webcast on Monday that “we are still drilling, but we expect some results really soon”. If successful, this well – the fifth that Galp has drilled in Petroleum Exploration Licence (PEL) 83 – would open up a new development area in the very large Mopane complex, which the operator has said previously holds resources of 10 billion barrels of oil equivalent. Commenting on the northwest area of Mopane, Carioca said Galp is “working really hard on the feasibility of one development concept in that (northwest) hub,” which is expected to tap resources in other reservoirs and not just AVO-1.
Upstream understands that the company has approached contractors in the floating production, storage and offloading sector about the possibility of securing a vessel, assuming Galp decides an FPSO is the best development solution. Discussing its first proposed development hub in northwest Mopane, Carioca said Galp is still gathering and integrating data from its drilling campaign and its recently acquired 3D seismic survey and expects much of this work to be finalised by the end of next month. Asked about a schedule for its planned PEL 83 farm-out – which has been delayed since starting in 2024 – she said Galp is in no hurry to conclude this process: “A farm-down is obviously a natural solution here [but] we're not in a rush. We've built a very solid balance sheet, a very solid position. There's no firm timeline defined at this stage.”
PCL Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
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