- Sintana Energy (TSXV:SEI) is reporting value-accretive testing results from the Mopane-1X well in Namibia’s Orange Basin
- Well test flows reached the maximum permitted limit of approximately 14,000 barrels of oil equivalent per day, suggesting that the broader Mopane complex could become a significant commercial discovery
- Sintana is active on five large, highly prospective, onshore and offshore petroleum exploration licenses in Namibia and Colombia’s Magdalena Basin
- Sintana Energy stock has skyrocketed by 546.67 per cent year-over-year, while adding 361.90 per cent over the past five years
Sintana Energy (TSXV:SEI) is reporting value-accretive testing results from the Mopane-1X well in Namibia’s Orange Basin.
Well test flows reached the maximum permitted limit of approximately 14,000 barrels of oil equivalent per day (boed), suggesting that the broader Mopane complex could become a significant commercial discovery.
The discovery is backed by reservoir log measures that contain “good porosities, high pressures and high permeabilities in large hydrocarbon columns,” according to Wednesday’s news release, with fluid samples showing very low oil viscosity, minimum CO2 and no H2S concentrations.
Source: Sintana Energy.
Discovered in January, Mopane-1X features significant columns containing light oil in high-quality reservoir sands on two levels: AVO-1 and AVO-2. Sintana followed this discovery up in March with Mopane-2X, which also contains significant light oil columns in high-quality reservoir sands across numerous targets. The broader Mopane complex is estimated to house more than 10 billion boe of hydrocarbons in-place.
Current Mopane drilling will inform an updated reservoir model, which will help Galp Energia determine near-term drilling plans to unlock value across the complex. Testing of Mopane-1X is part of ongoing exploration on blocks 2813A and 2814B in the heart of Namibia’s Orange Basin, which is gaining a reputation as one of the most prospective oil and gas regions in the world.
The blocks are governed by Petroleum Exploration License (PEL) 83, which is operated by a subsidiary of Portugal’s Galp Energia. Sintana maintains an indirect 49 per cent interest in Custos Energy, a 10 per cent working interest owner in PEL 83. Namcor, the National Petroleum Company of Namibia, also maintains a 10 per cent working interest.
Management insights
“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,” Knowledge Katti, Custos’ chairman and chief executive officer, said in a statement.
“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,” added Robert Bose, Sintana Energy’s chief executive officer. “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.”
About Sintana Energy
Sintana is engaged in petroleum and natural gas exploration and development. The small-cap energy stock is active on five large, highly prospective, onshore and offshore petroleum exploration licenses in Namibia and Colombia’s Magdalena Basin.
Sintana Energy stock (TSXV:SEI) is down by 4.90 per cent, trading at C$0.97 per share as of 10:10 am ET. The stock has skyrocketed by 546.67 per cent year-over-year, while adding 361.90 per cent over the past five years.
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