AGalp’s shares have been appreciating in recent days following the oil company’s announcement that it had made an “important commercial discovery”. In the end, What discovery was this?
On Sunday, Galp informed investors that the oil reserve in Namibia, in the first testing phase of the Mopane campaign, has the potential to be an “important commercial discovery”.
In a statement sent to the Securities Market Commission (CMVM), the company explained that “only in the Mopane complex and before drilling additional exploration and evaluation wells, estimates of hydrocarbons at the site are 10 billion barrels of oil equivalent, or more“.
Lively actions following this discovery
The rise in Galp shares in recent days is a natural reaction to the significant commercial discovery in Namibia and the eventual sale of the project makes it possible to reduce the risk inherent to the oil exploration businessconsidered analysts consulted by Lusa.
The rise in Galp’s shares is a natural reaction to the significant commercial discovery in Namibia and the eventual sale of the project makes it possible to reduce the risk inherent to the oil exploration business, analysts consulted by Lusa considered today.
Lusa | 18:02 – 04/22/2024
“Right now, there is enormous uncertainty regarding the future of exploration, cash flows [fluxos de caixa] futures and how much of their share they can sell to other companies. However, in either case, this will be a clear added value for Galp“, pointed out Henrique Tomé, analyst at xtb, in a written response to Lusa.
The analyst considered that If the company chooses to explore that reserve in Namibia, it will have a very large increase in future cash flow, as this reserve has enormous potential.
On the other hand, if the company chooses to sell part or all of the projectwhich holds 80%, can raise a large amount of capital in the short term, which it can use in other projects or distribute to its shareholders.
The news is being advanced by Reuters.
News at the Minute | 11:22 – 04/22/2024
The operational administrator of ActivTrades Brasil, Mário Martins, also highlighted that “when an effective discovery occurs, the company makes a substantial part of its investment profitable, even if only in a potential way”.
If the company offers part or all of the project for sale, this “will make it possible to realize a portion of this profitability, in addition to reducing the risk“, explained the analyst.
“Similarly, confirmation of these reservations provides raw material for several more years of the company’s operation, thus creating additional expectations of future profits“, added Mário Martins.
Read Also: Shares excited by Galp discovery in Namibia, analysts say
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