Galp shares surge on news from Namibia's Mopane field

22nd Apr 2024 09:19

(Sharecast News) - Shares in Portuguese oil company Galp Energia popped on Monday, after it announced completion of the initial exploration phase in the Mopane field, offshore Namibia, revealing the potential presence of a substantial oil reserve of at least 10 billion barrels.

The company said testing conducted at both the Mopane-1X and Mopane-2X wells unveiled significant light oil columns within high-quality reservoir sands, spaced eight kilometres apart.

It said the successful tests yielded flows reaching the maximum permissible limit of 14,000 barrels per day, indicating the commercial viability of the Mopane field.

Galp holds an 80% stake in licence PEL 83, covering nearly 10,000 square kilometres.

The firm's expansion into Namibia marked a diversification from its current significant investments in Brazil's offshore ventures and involvement in Mozambique's Rovuma basin natural gas project.

At 0913 BST, shares in Galp Energia were up 17.92% at €18.92.

Reporting by Josh White for Sharecast.com.