By: Peneyambeko Jonas
The successful completion of the Capricornus-1A appraisal well in the Orange Basin has reportedly added to hopes of Namibia becoming an oil-producing nation in the near future.
Industry players have described the results as an important step in understanding the country’s offshore petroleum potential.
The National Petroleum Corporation of Namibia (NAMCOR) welcomed an update from Rhino Resources Namibia this week, operator of Petroleum Exploration Licence (PEL) 85, confirming that the Capricornus-1A well reached a total depth of 4,818 metres and encountered oil-bearing rock linked to the earlier Capricornus-1X discovery.
The drilling campaign was completed safely and without incident.
PEL 85 is operated by Rhino Resources, which holds a 42.5% stake, alongside Azule Energy (42.5%), NAMCOR (10%) and Korres Investments (5%).
NAMCOR Acting Managing Director Mtundeni Ndafyaalako said “The Capricornus-1A well has provided important information that improves our understanding of the area and supports the next phase of appraisal work.”
He added that every well drilled in the Orange Basin contributes to a better understanding of Namibia’s offshore resources and strengthens confidence in the basin’s potential.
The latest results build on the earlier Capricornus-1X discovery, which encountered a high-quality light oil-bearing reservoir and recorded strong flow-test results, making it one of the most promising discoveries in Rhino’s acreage to date.
Rhino Resources Chief Executive Officer Travis Smithard described Capricornus-1A as a well which “represents a critical data point in defining the development potential of the Capricornus reservoir system.”
According to Rhino, data gathered from the appraisal well will help determine the size of the accumulation, reservoir quality and fluid characteristics, while also informing future development plans across the broader licence area.
Energy analysts say the importance of appraisal wells often goes beyond simply finding oil. While discovery wells confirm the presence of hydrocarbons, appraisal wells help companies determine whether a discovery can be commercially developed.
Mining and Energy Namibia noted that the Capricornus appraisal campaign was launched specifically to test the extension of the oil accumulation and improve understanding of the reservoir.
The publication reported that the earlier Capricornus-1X discovery strengthened industry confidence in the commercial potential of PEL 85.
The Orange Basin has emerged as one of the world’s most closely watched exploration regions following a series of sizeable offshore discoveries by international energy companies in recent years.
These discoveries have attracted significant investment and raised expectations that Namibia could become a major oil producer over the next decade.
Reuters previously reported that Rhino Resources is aiming to fast-track development of its discoveries and is targeting a final investment decision in the coming years, with the ambition of achieving first oil production by around 2030.
For Namibia, the significance of the Capricornus-1A results lies not only in the confirmation of oil-bearing formations, but also in the growing body of technical data that could support future investment decisions.
The information collected from Capricornus-1A will now be integrated with data from previous wells drilled in PEL 85, as the joint venture evaluates the next steps for appraisal and exploration.
The successful Capricornus-1A appraisal well does not yet mean commercial oil production is guaranteed. However, it provides crucial evidence that Namibia’s offshore discoveries continue to show promise.
The results are said to strengthen confidence in the Orange Basin, support further investment in exploration, and move the country closer to determining whether these discoveries can become future oil-producing projects capable of contributing to economic growth and job creation.
