Sintana Energy Inc (TSX-V:SEI, OTCQB:SEUSF) shares soared in Monday morning trade after its part-owned Mopane discovery, offshore Namibia, was confirmed as “world class” by tests conducted by project operator Galp.
Flows from the Mopane-1X well hit the maximum limit of 14,000 barrels oil equivalent per day in a test.
Changing hands at $0.84 each the exploration share was up around 45%, and earlier traded as high as $0.95 apiece.
Portuguese oil major Galp, in a statement on Sunday, described Mopane as "potentially an important commercial discovery."
Galp reckons the discovered Mopane complex alone could contain hydrocarbon in-place in excess of 10 billion barrels of oil equivalent. It also sees possible additional exploration and appraisal wells in the project’s vicinity.
“All acquired data from the current Mopane drilling campaign will be analysed and integrated into an updated reservoir model. The model will serve as the basis to refine Galp´s near-term drilling plan to further explore, appraise and develop the wider Mopane complex,” the company said in a statement.
Galp owns 80% of the project where it drilled the Mopane-1X well and made the initial discovery in January.
Sintana, meanwhile, has a 49% interest in minority Mopane partner Custos Energy which, in turn, holds a 10% in the Galp run project.
Knowledge Katti, Custos CEO, in a separate statement, commented: “The successful culmination of the exploration campaign at Mopane, including a well test reaching the maximum allowable limit, further demonstrates the scope and potential of PEL 83 with Mopane alone containing potential in excess of 10 billion barrels of original oil in place making it one of the largest discoveries globally.”
Sintana CEO Robert Bose added: “The results of the initial exploration campaign on PEL 83 are a true milestone for all stakeholders including the people of Namibia, our local partners and Sintana.
“We are thrilled to be a part of this world class discovery and want to express our sincere gratitude and appreciation for the efforts and tenacity of the Joint Venture partners, including Custos.”
“The timeliness of our entry and the unmatched nature of our portfolio continue to be demonstrated as the Orange Basin emerges as the world’s next great hydrocarbon province.”