Assala Energy has encountered hydrocarbons in an exploration well onshore Gabon. The Magoga-A well, drilled in the Mutamba Iroru II licence with a subsequent sidetrack into the Atora II licence, found hydrocarbons in the targeted reservoir. Preliminary evaluation indicates eight metres of hydrocarbons in the Gamba sandstone formation.

Next Steps and Cautions

The company will now integrate and interpret the well results to assess reservoir properties, fluid characteristics, volumetric potential, and possible next steps, which may include additional appraisal activity. However, Assala cautioned that no determination has been made regarding the discovery's commerciality, nor any decision taken about development. A company director described the result as encouraging for the area's prospectivity, with the immediate focus being a thorough technical evaluation.

Operational Context

Mutamba-Iroru II is one of three exploration permits operated by Assala. Atora II is one of six production permits the company controls. This discovery follows a corporate development in mid-2024, when the state-owned Gabon Oil Company struck a deal to acquire Assala from private equity firm Carlyle, pre-empting an earlier deal to sell the company to Maurel & Prom. Three months prior to this announcement, Assala reported production of 57,000 barrels of oil per day.