GGE - another discovery made in offshore Namibia?
Yesterday we saw the following post on LinkedIn which is alluding to a potential new oil/gas discovery made in Offshore Namibia.
Good news for our Investment Grand Gulf Energy (ASX: GGE) which has just picked up an option to acquire a project offshore in Namibia.
To date all of the mega discoveries offshore in Namibia have been made in the Orange Basin.
Yesterday’s news is from PEL 85 which again is in the Orange Basin.
GGE’s block is in the same region, BUT it is technically in what’s called the Walvis Basin.
We think new discoveries across any part of offshore Namibia is a net positive for GGE because it means the region becomes even larger from a development opportunity perspective.
It also means more capital and expertise will flock to this part of the world at some point, increasing the look through valuation of any projects in the region.
It will also mean the incentive to build out processing infrastructure at scale is higher - again a net positive for any smaller companies looking to make a discovery of their own…
Here is where GGE’s application sits relative to the mega discoveries and yesterday’s news:
We did a deep dive on GGE’s new deal in our latest note, where we covered:
- Why we think Namibia is on track to become a top 10 oil producer…
- Why we like GGE’s new technical advisors and how they are proven oil finders
- Why we like high-risk, high-reward exploration
- History of GGE’s (pending) block
- Why Namibia is the place to be right now
- Will Namibia be the next “Guyana” for oil?
- What we want to see next for GGE
Check out the full note here: Tiny GGE secures option over 1BN barrels of oil (gross mean prospective resource)
