Major Oil Discovery in Namibia's Orange Basin Confirmed by Successful Appraisal Well

In a significant development for Namibia's emerging oil and gas industry, Custos Energy and its partners have successfully completed the Mopane-1A appraisal well in the Orange Basin, confirming a major hydrocarbon discovery. The well, drilled as part of the second exploration and appraisal campaign on Petroleum Exploration License 83 (PEL 83), encountered light oil and gas-condensate in high-quality reservoir sands, further validating the potential of what could be one of the world's most promising new oil and gas regions.

The Mopane-1A well, spudded on October 23rd and completed on November 28th, is the third well in the current campaign. It follows the successful drilling of Mopane-1X and Mopane-2X wells earlier in 2024, which resulted in multiple discoveries with an initial estimate of 10 billion barrels of oil equivalent in place. The latest well results confirm the extension and quality of the AVO-1 prospect, showcasing good porosities, high permeabilities, and high pressures, along with low oil viscosity and minimal impurities.

This discovery is particularly significant for Namibia, a country that has not previously been a major player in the global oil and gas market. The scale and quality of the find could potentially transform Namibia's economy, creating new jobs, boosting government revenues, and potentially positioning the country as an important energy exporter. Knowledge Katti, Chairman and CEO of Custos Energy, emphasized the importance of these findings, stating that they "further unveil the potential and quality of the Mopane complex."

The success of the Mopane-1A well is part of a larger exploration effort in PEL 83, which is operated by a subsidiary of Portugal's Galp Energia. Custos Energy and NAMCOR, the National Petroleum Corporation of Namibia, each hold a 10% working interest in the license. The joint venture partners are planning to continue their exploration and appraisal activities, with additional wells planned and a high-resolution 3D seismic campaign scheduled to begin in December 2024.

The potential commercial viability of the discovery is underscored by the results of a drill stem test conducted earlier in the year, which achieved an infrastructure-constrained flow of 14,000 barrels of oil equivalent per day. This flow rate reached the maximum allowed limits, indicating that the actual production potential could be even higher. The combination of high-quality reservoirs, significant hydrocarbon columns, and favorable fluid characteristics positions the Mopane discovery as a potentially important commercial asset.

Maggy Shino, Petroleum Commissioner at Namibia's Ministry of Mines and Energy, expressed optimism about the discovery's implications for the country's energy sector. The successful appraisal well marks another significant milestone in Namibia's journey towards becoming an oil-producing nation, with potential ripple effects throughout the economy.

As exploration activities continue, the global energy industry will be watching closely. The scale of the discovery in the Orange Basin could have implications for global oil markets and energy geopolitics, potentially introducing a new significant player in African oil production. For Namibia, the challenge now will be to manage this resource responsibly, ensuring that the benefits are shared across society while maintaining environmental stewardship.

The ongoing exploration campaign in PEL 83 represents a critical juncture for Namibia's economic future. As further data is analyzed and additional wells are drilled, the full extent of the Orange Basin's potential will become clearer, potentially heralding a new era for Namibia on the global energy stage.