Major Oil Exploration Campaign Launches in Namibia's Orange Basin

In a significant development for the global oil and gas industry, Custos Energy has announced the start of a second exploration and appraisal campaign in Namibia's Orange Basin, an area rapidly gaining recognition as one of the world's most promising oil and gas regions. The campaign, which began with the spudding of the Mopane 1-A well on October 23rd, marks a crucial step in further evaluating the potential of what could be a world-class oil discovery.

The exploration is taking place in blocks 2813A and 2814B, governed by Petroleum Exploration License 83 (PEL 83). This license is operated by a subsidiary of Portugal's Galp Energia, with Custos Energy and NAMCOR, Namibia's National Petroleum Corporation, each holding a 10% working interest. The current campaign follows a successful initial exploration earlier in 2024, which revealed multiple discoveries of significant light oil columns in high-quality reservoir sands.

The importance of this exploration cannot be overstated. Initial estimates from the first campaign suggest an original oil in place (OOIP) of 10 billion barrels of oil equivalent. A drill stem test conducted during the initial phase demonstrated an infrastructure-constrained flow of 14,000 barrels of oil equivalent per day, hinting at the substantial commercial potential of the discovery.

This second campaign, utilizing the drill ship Santorini, is set to include up to four wells - two for exploration and two for appraisal. The primary objective is to gain deeper insights into the scope and quality of the Mopane complex. Early analysis has revealed promising characteristics of the reservoirs, including good porosities, high pressures, and high permeabilities, coupled with very low oil viscosity and the absence of CO2 or H2S.

The implications of a successful campaign could be far-reaching. For Namibia, it represents a potential economic windfall, offering the prospect of significant revenue and job creation in the energy sector. On a global scale, the discovery of such vast oil reserves could impact oil prices and energy geopolitics, potentially shifting some focus from traditional oil-producing regions to this emerging player in the southern African coast.

Knowledge Katti, Chairman and CEO of Custos, expressed optimism about the campaign, stating, "The further unveiling of the potential and quality of the Mopane complex will provide additional insights into the scope and quality of this world-class opportunity." This sentiment underscores the potential game-changing nature of the discovery for both Namibia and the global oil industry.

As the world grapples with energy transition challenges, discoveries of this magnitude in new regions could play a crucial role in shaping future energy strategies. The success of this exploration could not only bolster Namibia's position in the global energy market but also contribute to discussions about energy security and diversification of oil sources worldwide.

The oil and gas industry will be watching the progress of the Mopane 1-A well and subsequent drilling activities closely. The results of this campaign could have significant implications for investment in African oil exploration and production, potentially opening up new frontiers in a continent that has long been viewed as underexplored in terms of hydrocarbon resources.

As operations continue, the focus will be on safe and efficient execution, with the potential to unlock substantial value for all stakeholders involved. The success of this venture could mark a new chapter in Namibia's economic development and its role in the global energy landscape.