PEL 83 Exploration Campaign Fifth Update Successful Conclusion of Well Testing Operations at Mopane-1X

–News Direct–

Custos Energy (Pty) Ltd. (Custos or the Company) is pleased to provide the following update regarding the ongoing exploration campaign on blocks 2813A and 2814B located in the heart of Namibias Orange Basin, emerging as the one of the worlds most prospective oil and gas regions. The blocks are governed by Petroleum Exploration License 83 (PEL 83) which is operated by a subsidiary of Galp Energia (Galp) of Portugal. Custos is a 10% working interest owner in PEL 83 as is NAMCOR, the National Petroleum Corporation of Namibia. Further to previous updates provided during Q1 2024, Galp (80%, operator) together with its partners NAMCOR and Custos, has successfully completed the first phase of the Mopane exploration campaign with the conclusion of the Mopane 1X Well Testing operations.

The Mopane-1X well discovered, inJanuary, significant oil columns containing light oil in high-quality reservoir sands at two different levels: AVO-1 and AVO-2. The rig then moved to the Mopane-2X well location, where in March significant light oil columns were discovered in high-quality reservoir sands across exploration and appraisal targets; AVO-3, AVO-1 and a deeper target. In particular, the Mopane-2X well found AVO-1 to be in the same pressure regime as in the Mopane-1X discovery well, around 8km to the east, confirming its lateral extension.

The reservoirs log measures contain good porosities, high pressures and high permeabilities in large hydrocarbon columns. Fluid samples present very low oil viscosity and contain minimum CO2 and no H2S concentrations. The flows achieved during the well test have reached the maximum allowed limits of approximately 14 thousand barrels oil equivalent per day, positioning Mopane potentially as an important commercial discovery. In the Mopane complex alone, and before drilling additional exploration and appraisal wells, hydrocarbon in-place estimates are 10 billion barrels of oil equivalent, or higher.

All acquired data from the current Mopane drilling campaign will be analyzed and integrated into an updated reservoir model. The model will serve as the basis to refine Galps near-term drilling plan to further explore, appraise and develop the wider Mopane complex. PEL 83 is located immediately north of PEL 39 home to Shells basin opening discoveries at Graff-1, La Rona-1 and Jonker-1. Additionally, it is located north and east of PEL 56 where TotalEnergies announced its giant oil discovery at Venus-1.

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 the current discoveries alone containing potential in excess of 10 billion barrels of original oil in place, Mopane is one of the largest discoveries globally. said Knowledge Katti, Chairman and Chief Executive Officer of Custos. The success of this exploration campaign clearly demonstrates the opportunity this industry canbring to the people of Namibia, including in particular young Namibians. Custos looks forward to working with local community trusts to ensure that this progress improves livelihoods and opportunities while reducing poverty in an equitable and sustainable way. We are proud andhonored to lead these initiatives. he added.

ABOUT CUSTOS ENERGY: Custos is a Namibian independent oil and gas exploration company focused on attracting investment and expertise to the Namibian offshore industry. Founded over a decade ago by Mr. Knowledge Katti, Custos continues to develop its portfolio with international partners for the benefit of all Namibians.

Contact Details

Knowledge R Katti

+1 475-477-9410

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Custos Energy

COMTEX_451179862/2655/2024-04-21T11:04:15