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Galp has spud Mopane-1X and expects to reach total depth in 60-80 days

SUMMARY

Following major discoveries by Shell and TotalEnergies in Namibia’s Orange Basin, Chevron, Woodside Energy, and Galp Energia are preparing to spud multiple wells over the next year.

Sintana’s latest press release confirms that Galp has spud its first well at Mopane-1X in PEL 83, a block where Sintana holds a 4.9% carried interest. Galp believes that this block could hold up to 10 billion barrels of oil and, to date, has not shown interest in joint ventures to share the risk.

https://www.globenewswire.com/news-release/2023/11/27/2786040/0/en/SINTANA-ENERGY-INC-Provides-Update-on-PELs-83-90-Galp-Spuds-Exploration-Well-and-Chevron-Applies-to-Drill-up-to-10-Wells.html

The Hercules rig, accompanied by the Songa Discoverer supply ship, initially made a stop at Mopane-2X. Instead of paying the funds to bring that crew back and forth twice for each drill, they have now prepared both sites, including blowout preventers, and are currently drilling Mopane-1X. Preparing both sites in a single trip resulting in a savings of over $1 million. The 115 day timeline in the contract is for the guaranteed first drill and travel. Galp has the option for a second drill and a flow test which will go beyond the 115 days. Based on the fact that they prepared both sites, it shows that Galp has a high level of confidence that it will exercise the option to drill Mopane-2X. Total depth on Mopane-1X is expected in 60-80 days.

In addition to announcing the spud of the first well in one of Sintana’s three blocks, the press release included an update on PEL 90. Originally scheduled for Q2 2024, Chevron announced that it has received environmental clearance to drill up to ten wells, which includes five exploration and five appraisal wells. Drilling will now commence in Q4 2024.

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Due to the difficulty with Reddit filters, which only allow two links per post, the following link provides access to a PDF file which contains my complete summary:

SINTANA ENERGY OVERVIEW & UPDATE

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Like in some cases it’s like a sponge, others a pool. What is the possibility that I could put another liquid down there. Maybe even pump water down to get more oil out? What’s the science metrics behind it. Links to some articles would be great

In this article, titled "Biden’s Abysmal Oil and Gas Lease Record" (https://www.instituteforenergyresearch.org/fossil-fuels/gas-and-oil/bidens-abysmal-oil-and-gas-lease-record/), there's a chart that shows federal acres leased during first 19 months of different presidents' administrations. Biden's approved leases are shown at 0.13 million - much less than the 4.4 million approved leases under Trump.

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In this article, titled "Oil production is surging. How much is due to Biden?" (https://www.eenews.net/articles/oil-production-is-surging-how-much-is-due-to-biden/), it is stated that "A data analysis by E&E News also shows that the Bureau of Land Management has approved more oil and gas leases on federal lands during Biden’s first two years and seven months as president than former President Trump did during the same amount of time at the beginning of his administration."

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The first article is from 09/22 and the second article is from 09/23. Did the Biden administration approve millions of oil and gas leases between 09/22 and 09/23 or is one of these articles giving incorrect information?

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In the second article, it is stated that:

"Lipow said part of the reason for that is compromises the Biden administration had to make to pass the Inflation Reduction Act.

It forced the administration “to do a number of things,” Lipow said.

Among them was holding lease sales for millions of acres, including a sale for parcels of 958,000 acres in Alaska and one for 73.4 million acres in the Gulf of Mexico. Despite those sales, companies only bid for 5,700 acres in Alaska, and companies bid for 2.3 percent of the acreage offered in the Gulf."

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But I'm assuming that "*approved* oil and gas leases" in the quote:

"A data analysis by E&E News also shows that the Bureau of Land Management has approved more oil and gas leases on federal lands during Biden’s first two years and seven months as president than former President Trump did during the same amount of time at the beginning of his administration."

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only refers to leases that have actually been sold - if that's not the case then the 73.4 million acres in the Gulf of Mexico that was put up for auction would mean that Biden has now approved more oil and gas leases than even Regan...or do you think that the second article is incorrectly counting acres that have been put up for auction as "approved leases"?

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Since there seems to be a lot of interest, here's this sorta old article again. After speaking to various sources, we don't expect a snapback of sanctions, but a further reopening instead.

https://www.forbes.com/sites/eliasferrerbreda/2023/11/02/venezuela-sanctions-why-there-will-be-no-snapback/

https://bothbarrels.beehiiv.com/p/14nov23

I know the labels are on the packaging but I can’t find any good information about these online. I called the manufacturer and they told me they were parts of a blowout preventer. They were purchased in a estate sale lot and I’m trying to understand the value of these items. I would like to know what these were used for and if they have any value. Thank you!

I have been following the oil market since the major dip in prices post-COVID. Later on, oil/gas picked up steam following the recovery period and the geopolitical events that followed. The cuts in supply alongside wars that involved major producers led to the significant spike last year, but it was ended with the downturn at the end of 2022. There was another recovery this year partly due to economies bouncing back as well as production cuts from OPEC.

And now we head into today, prices jumped in September and then again in October where the war premium was supposably priced in. However, following fears of falling demand the price dropped. I find this drop peculiar and I believe there is a major mismatch in the industry right now.

First of all, the war premium shouldn't have faded off so quickly. The tensions are far from dropping and escalation is very much a possibility, but I will refrain from speaking on this subject much further because it is definitely a hot topic.

In terms of supply, I find it hard to believe that prices have dropped when Argentina and Egypt are having shortages(countries who together have over 150 million population). The US Strategic Reserve is at a low and the European supply-chain is far from stable or cheap with Russias exit.

Demand dropping is what would explain this drop in prices. However, is there really such a crisis in oil demand? EV and green energy has been hit hard this year and is far from curbing fossil fuels. China's economy is not performing according to expectation but they are importing record levels of oil. Furthermore, other economies are advancing like India, Nigeria and Vietnam. They should be having some effect on curbing economic slowdown and a fall in demand. Furthermore, are the major economies really seeing such a major downturn in oil consumption? Is this reflected in the industry?

Also, to counter the point about demand falling. US exports are reaching all-time highs and production levels are peaking. How is this representative of a fall in demand? It seems that data is currently pointing into two different directions.

Lastly, despite peak exports and production, the rig count has dropped significantly since last year. Does anyone know why this is happening? Shouldn't an increase in exports and production positively correlate with rig count? I'm assuming they're focusing on lucrative wells and extending the usage of current rigs, but this can't extend permanently. Do people in the industry think that we will see a reversal in rig count and demand trends in the short to medium term? Or is the general opinion bearish?

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The webinar expands on details provided in the November 2023 corporate presentation

Following huge discoveries by TotalEnergies and Shell in Namibia's offshore Orange Basin, Namibia is often referred to as the "next Guyana" as Chevron, Woodside, and Galp prepare to spud four wells in this basin during the Q1 2023 - Q2 2024 period. Meanwhile, ReconAfrica is preparing to embark on a three-well campaign in the onshore Namibian Kavango Basin. With new CEO Brian Reinsborough in charge, the onshore drilling campaign targeting the gas-prone Damara Fold Belt and light oil-prone rift basin is set to begin in Q1 2024.

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ReconAfrica CEO Brian Reinsborough

On November 9, 2023, new President and CEO Brian Reinsborough held a webinar that included a Q&A session with ReconAfrica investors during which he outlined his future vision under new management.

The first part of the webinar includes Brian's in-depth explanation of the material in the recently released November 2023 corporate presentation. The investor Q&A session begins at the 38 minute mark. The link to the webinar on the ReconAfrica YouTube channel can be found here:

ReconAfrica November 2023 Webinar and Q&A

The YouTube video can be viewed by the public and does not require you to join, or subscribe, to any group.

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ReconAfrica has updated their corporate presentation for November 2023.

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ReconAfrica corporate presentation November 2023

The Q4 Investor/Corporate Presentation, version 2 updated in November 2023, can be found here:

RECONAFRICA NOVEMBER 2023 CORPORATE PRESENTATION

There are two slides in this presentation that are particularly interesting. These slides were not in the previous version and there are several indications in the presentation that indicate that a JV partnership is essentially complete, although it has not yet been announced.

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ReconAfrica onshore Namibia Oil & Gas plays

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Active hydrocarbon seeps in ReconAfrica lease area

REGIONAL ONSHORE PLAYERS ADJACENT TO RECONAFRICA

There are three local players adjacent to the lease held by ReconAfrica. This includes Monitor Exploration (MEL), which holds the block directly west of ReconAfrica, Elephant Oil, which holds a lease adjacent to and directly south of ReconAfrica's block in Namibia, and Sintana, which holds a lease to the southwest of the Elephant Oil block.

The reason these companies are important to ReconAfrica is that discoveries adjacent to ReconAfrica's lease area greatly improve the odds of commerciality of resources. It is one thing to make a discovery, but it is entirely something different for a discovery to have commercial value (the ability of the resources to be marketed, which depends on available or future infrastructure).

Monitor (MEL) Exploration - This company holds a lease in the block that is adjacent to, and directly west, of the lease held by ReconAfrica. Monitor Exploration is a privately held company.

Elephant Oil - Many believe that the Damara Fold Belt, as delineated by ReconAfrica's 2D seismic and eFTG surveys, may extend into this lease area. This company also holds a lease in onshore Benin. Elephant Oil is currently going through an IPO.

Sintana Energy - Sintana Energy holds a block to the southwest of ReconAfrica and Elephant Oil. Furthermore, they hold a carried interest share of three blocks in the offshore Orange Basin which will be drilled by primary operators Chevron, Woodside, and Galp between Q4 2023 and Q2 2024. These blocks are directly to the north of massive Orange Basin discoveries made by Shell and TotalEnergies. They also hold a lease in Columbia. The following link provides more information on Sintana Energy.

SINTANA ENERGY CORPORATE PRESENTATION - NAMIBIA OFFSHORE & ONSHORE FOCUS

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Hello, I am a 22 year old male from south GA. I have toyed with the idea of going into the oil industry for a few years now but have recently decided to actively pursue. I have worked labor jobs my entire adult life as my father passed in 2018 and endowed me a home. A lot of my high school collegiate ambition began slowly dying as i eased into the mundane life of a young adult stuck between college dreams both athletic and academic, and stuck maintaining a large home on an inexperienced 18 year old budget. I worked for city and county, did construction and was unfulfilled in all i did as i wasnt a "doctor or lawyer" like dear dad wanted. I got married 2 years ago and my wife has changed my life and made me into a much stronger man, mentally and emotionally. Ive been working for the dept. of corrections in my state for about 2 years now and while the pay is good for my experience and age, I dont see this tree bearing any fruit to establish a strong financial future my wife and I desire. I have weighed the options and given my size, active mind set, and unfathomable ambition, i see the oil field as a challenge I want to undertake, both for myself and to fulfil my wife's dream of being a cosmetologist. I promised her when i married her I would pay for her college and put her in her dream car and the most beautiful house with land I could muster. Any information relevant to getting started making the big money in this field would be appreciated more than you know. Thank you.

https://wallstreetai.substack.com/i/138619294/saudi-arabia-and-russia-extend-voluntary-oil-output-cuts-amid-lingering-demand-concerns