Successful Hydrocarbon Discoveries in Namibia's Orange Basin Exploration Campaign

Namibia's emerging oil and gas sector has received a substantial boost with the announcement of successful hydrocarbon discoveries in the Orange Basin. Custos Energy, a 10% stakeholder in Petroleum Exploration License 83 (PEL 83), has reported promising results from the second exploration and appraisal campaign in blocks 2813A and 2814B.

The Mopane-2A well, the fourth in the campaign, has yielded significant findings. Drilled and logged successfully, the well revealed a hydrocarbon column of gas-condensate in the AVO-3 reservoir, albeit with a thin net pay in the sweet spot. Additionally, a smaller reservoir, AVO-4, was found to contain a hydrocarbon column of light oil. These discoveries are characterized by high-quality sands with favorable porosity and permeability, high pressures, and low fluid viscosity. Notably, the reservoirs showed minimal CO2 concentrations and no H2S, factors that can significantly impact extraction costs and environmental considerations.

The absence of water contacts in all Mopane wells to date is a particularly encouraging sign for the potential of these reservoirs. This consistent dry oil column suggests the possibility of substantial recoverable reserves, which could have far-reaching implications for Namibia's economic future.

As part of the ongoing exploration efforts, the drilling operation is now moving to the Mopane-3X location, targeting two stacked prospects: AVO-10 and AVO-13. This next phase, with an expected spud date around January 1, 2025, demonstrates the joint venture's commitment to thoroughly assessing the area's potential.

Concurrent with the drilling operations, a high-density, high-resolution 3D seismic campaign is being conducted over the Mopane complex. This advanced imaging will provide crucial data for understanding the full extent and characteristics of the hydrocarbon reserves, potentially leading to more precise targeting in future drilling operations.

The implications of these discoveries extend beyond the immediate stakeholders. For Namibia, a country with a developing economy, the potential for a significant oil and gas industry could be transformative. It could lead to increased foreign investment, job creation, and technological transfer, potentially positioning Namibia as a key player in the global energy market.

Knowledge Katti, Chairman and CEO of Custos Energy, emphasized the significance of these findings, stating that they provide "further evidence of the quality and potential of the Mopane complex." He also highlighted Custos's unique position "at the heart of this emerging hydrocarbon province," suggesting that the company is well-placed to capitalize on future developments in the region.

The success of this exploration campaign could also have broader implications for the global energy landscape. As the world grapples with energy transition challenges, new hydrocarbon discoveries of this scale could influence global supply dynamics and energy security considerations.

As analysis of the newly acquired data continues, the industry will be watching closely to see how these discoveries translate into commercial viability. The ongoing exploration and appraisal activities over the coming months are expected to provide further insights into the scale and quality of the Mopane complex, potentially unveiling what Katti describes as a "world-class" resource.