Galp Energia (GLPEY) Discovers Oil in Namibia's Orange Basin
Galp Energia SGPS SA GLPEY, along with its partners National Petroleum Corporation of Namibia (NAMCOR) and Custos Energy, discovered oil in the Mopane 2X well. The Mopane 2X well has reached its designated depth in the petroleum exploration license (PEL) 83.
The Mopane 2X well, drilled in the Orange Basin, offshore Namibia has successfully discovered a substantial column with light oil within reservoirs of excellent quality. The drilling operation included the AVO-3 exploration target, the AVO-1 appraisal target and another deeper target, which were thoroughly cored and logged. In particular, the AVO-1 appraisal target has confirmed the same pressure regime that was found in the Mopane 1X discovery well, located approximately 8 kilometers to the east. The discovery confirms the lateral extension of the well.
Following the completion of drilling activities, the rig will return to the location of Mopane 1X well to conduct a drill stem test (DST) until early April. The acquired data will be analyzed by Galp Energia in the following week to evaluate the commercial viability of the discoveries.
Mopane 1X and Mopane 2X are included in GLPEY's exploration efforts in the Orange Basin, within blocks 2813A and 2814B under PEL 83, located north of PEL 39. Both licenses are situated in waters with a depth of 250-2,550 meters. PEL 83 is operated by Galp Energia, which owns an 80% stake, along with NAMCOR and Custos Energy, who own a 10% stake each.
GLPEY is an exploration and production player, based in Portugal. It is also engaged in refining and marketing of oil products, natural gas marketing and sales, and power generation.
Zacks Rank and Key Picks
Currently, GPLEY carries a Zacks Rank #4 (Sell).
Investors might want to look at some better-ranked stocks in the energy sector, such as Sunoco LP SUN, Archrock, Inc. AROC and Energy Transfer LP ET. Sunoco and Archrock presently sport a Zacks Rank #1 (Strong Buy) each, whereas Energy Transfer carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. With a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the partnership’s outlook seems positive.
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