Galp Jumps After Saying Namibia Oil Find May Be ‘Important’

(Bloomberg) -- Galp Energia SGPS SA’s shares jumped after the Portuguese oil company said a well test “potentially” indicates Mopane could be an important commercial find in Namibia.

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The stock climbed as much as 21% in Lisbon to €19.37, the highest since 2007.

“The flows achieved during the well test have reached the maximum allowed limits of 14,000 barrels of oil equivalent per day, potentially positioning Mopane as an important commercial discovery,” Galp said in a regulatory filing on Sunday. “In the Mopane complex alone, and before drilling additional exploration and appraisal wells, hydrocarbon in-place estimates are 10 billion barrels of oil equivalent, or higher.”

Oil finds by Galp in Namibia have added to discoveries drilled off the southwest African nation. In the past two years, majors Shell Plc and TotalEnergies SE have made finds that turned the sparsely populated country into a hotspot for exploration on the continent.

Read more: Namibia Oil Finds Stack Up With Second Discovery by Galp

Galp said on Sunday that it “successfully” completed the first phase of the Mopane exploration campaign with the conclusion of the Mopane-1X well testing operations. Galp said it plans to further explore, appraise and develop the wider Mopane complex.

Lisbon-based Galp is the operator with 80% of the license area. National Petroleum Corp. of Namibia, or Namcor, and Custos each hold 10% stakes.

Galp also holds stakes in offshore oil blocks in Brazil.

--With assistance from Paul Burkhardt.

(Updates with details on other discoveries in fourth paragraph.)

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