Galp Energia SGPS SA GLPEY, a Portuguese oil and gas firm, has announced another successful discovery of oil and gas in the Orange Basin offshore Namibia. The company has encountered oil while drilling the Mopane 3X well in the Petroleum Exploration License 83 (PEL 83) area. The well was drilled as part of the second exploration and appraisal campaign targeted at blocks 2813A and 2814B. Galp is the operator of PEL 83, holding an 80% stake, and NAMCOR and Custos Energy have a 10% stake each.

Details of Mopane 3X Well

Galp mentioned that the Mopane 3X well targeted two stacked prospects, namely AVO-10 and AVO-13.Additionally, the exploration efforts targeted deeper sand toward the southeast of the Mopane complex. The water depth at the site was 1,200 meters. The Mopane 3X well was drilled approximately 18 kilometers away from the Mopane 1X well. GLPEY and its partners mentioned that the well has been drilled, cored and logged.

Preliminary Data on Reservoir Quality

According to the preliminary data, the company noted the presence of light oil and gas condensate in significant columns in the AVO-10 prospect. In the AVO-13 prospect and the deeper sand, light oil was confirmed in sandstones of high quality.

Furthermore, the reservoir log measures indicated high porosity, with high pressures and permeability. This suggests that the flow of oil and gas within the rock formation is strong and should help make the production efficient. The preliminary fluid samples were sent for testing to determine the quality and composition of the hydrocarbons, which yielded satisfactory results. The company stated that the oil had low viscosity along with minimal concentration of CO2 and hydrogen sulfide (H2S).

The preliminary results yielded in this exploration campaign, with greater-than-expected reservoir pressure, demonstrate strong potential in the region’s oil and gas resources. Further, these results expand the scope for exploration and appraisal opportunities in the southeastern region of the Mopane complex.The Mopane prospect is gaining momentum as an emerging oil and gas hub, with several discoveries made by global energy firms like TotalEnergies, Chevron, Shell and Woodside Energy.  

Future Exploration Potential

The data acquired during the process will be used by Galp to update the reservoir model, helping in the assessment of the reservoir’s properties and supporting future drilling activities.

Galp also mentioned that a proprietary 3D development seismic acquisition campaign will be conducted that should help it attain high-resolution images of the rock formations in the Mopane complex. The seismic survey is expected to be concluded by the first quarter of 2025. Following this, the information gathered from this survey will be processed to gain further insights. 

GLPEY’s Zacks Rank and Key Picks

GLPEY currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Archrock Inc. AROC, Matador Resources Corporation MTDR and Equinor ASA EQNR. Archrock currently sports a Zacks Rank #1 (Strong Buy), while Matador Resources and Equinor carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.

Matador Resources is a leading U.S.-based exploration and production firm. The company has consistently exceeded production expectations, demonstrating operational efficiency and robust growth. MTDR’s production efficiency, combined with the favorable oil price environment, is expected to positively impact its bottom line.

Equinor ASA is one of the leading integrated energy companies globally and the second-largest supplier of natural gas in Europe. The company’s expansion in the renewable energy space positions it for long-term growth as more and more countries transition toward cleaner energy solutions to meet their climate goals. Its strategic pivot toward low-carbon energy solutions unlocks new revenue streams in the growing market for clean energy and carbon management solutions.

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