BW Energy plans to open a new data room for its Kudu gas discovery offshore Namibia to attract a potential farm-in partner. This follows the completion of the Kharas-1 appraisal-exploration well last year.

Kharas-1 Well Results and Project Status

The Kharas-1 well, drilled near the Kudu discovery, did not find the additional resources required to make the project economically viable. However, it did encounter non-commercial liquid hydrocarbons. The company's analysis indicates that while the findings are interesting, extensive additional appraisal and exploration work is needed to unlock Kudu's potential.

Rationale for the Data Room

The primary purpose of the new data room is to make the fresh information from the Kharas-1 well available to potential partners. BW Energy aims to find parties who share its view of the asset's potential and are willing to cooperate on drilling additional wells. The company believes the Orange basin is still in the early stages of development and that many more wells will be required to fully understand its potential, as hinted at by the Kharas-1 results.

Ownership Structure

BW Energy holds a 95% interest in the Kudu production licence, with the remaining 5% held by the state-owned Namcor.