By Christian Moess Laursen
Shell said Wednesday that successful drilling of a fourth exploration well in Namibia confirms the presence of hydrocarbons.
The energy major said further evaluation is required to determine the development potential of the Lesedi-1X well.
Speaking at the company's Capital Markets Day in New York last month, Integrated Gas and Upstream Director Zoe Yujnovich said the company had recently conducted a successful flow test, the first ever in the south-west African country.
"We are in the process of reviewing the encouraging results and are focused on determining commercial potential, moving cost-effectively and at pace," Yujnovich said.
The upcoming results from the production flow test should help assess the economics of the oil resource, and if it will be another Guyana-sized opportunity, or something much smaller, the analysts wrote in a research note earlier in this week.
Since 2022, Shell has drilled three exploration wells and one appraisal well in Namibia.
Write to Christian Moess Laursen at christian.moess@wsj.com
(END) Dow Jones Newswires
07-12-23 0903ET