Sintana Energy (TSX-V:SEI, OTCQB:SEUSF) chief executive Robert Bose cheered a second discovery in the company’s Galp-led exploration venture offshore Namibia.
The exploration company, in a statement, told investors that the Mopane-1X well in Block 2813, within the Orange basin, had identified its second light oil discovery in the deeper AVO-2 target.
It comes after Mopane-1X revealed its first significant light oil discovery on January 10.
Sintana has an indirect interest in the project via a 50% shareholding in project partner Custos Energy – which in turn owns a 10% stake in the exploration block.
The Toronto-listed firm, meanwhile, highlighted that the Mopane-1X discoveries are located in what’s becoming a prolific exploration hotspot with other nearby discoveries made by Shell Plc (the Graff, La Rona and Jonker discoveries) and French major TotalEnergies (which made the ‘giant’ Venus discovery).
The drill rig will in due course move to the next well site, Mopane-2X, and after that, a more detailed analysis of the Mopane-1X discoveries will be undertaken via drill-stem testing, Sintana noted.
“This second light oil discovery at Mopane-1X provides further evidence of the scale and quality of our exploration portfolio held through our local partners, including Custos,” Robert Bose said.
“We continue to be reminded of the timeliness of our entry into Namibia with the ongoing progress and success.”
In Toronto, Sintana stock advanced around 10% in early transactions to change hands at 50 cents a share.
Knowledge Katti, Custos chief executive, added: “The continuing success of the initial exploration campaign, including a second light oil discovery at Mopane-1X, further demonstrate the scope and potential of PEL 83.”
“This is another significant milestone for Custos positioning us for further growth and continued success underpinned by our unmatched position in the heart of the basin.”
Namibia’s Ministry of Mines and Energy, in comments attached to Friday’s press release, highlighted the discovery as evidence of the potential for further growth in the country's oil industry.
“With this discovery, we are one step closer to harnessing the full potential of this campaign and wish Galp and its partners Custos Energy and Namcor success with the remaining drilling campaign,” Namibia’s petroleum commission, Maggy Shino said.