SHEL Shell Plc

By Christian Moess Laursen

Shell said Wednesday that successful drilling of a fourth exploration well in Namibia confirms the presence of hydrocarbons.

The energy major said further evaluation is required to determine the development potential of the Lesedi-1X well.

Speaking at the company's Capital Markets Day in New York last month, Integrated Gas and Upstream Director Zoe Yujnovich said the company had recently conducted a successful flow test, the first ever in the south-west African country.

"We are in the process of reviewing the encouraging results and are focused on determining commercial potential, moving cost-effectively and at pace," Yujnovich said.

The upcoming results from the production flow test should help assess the economics of the oil resource, and if it will be another Guyana-sized opportunity, or something much smaller, the analysts wrote in a research note earlier in this week.

Since 2022, Shell has drilled three exploration wells and one appraisal well in Namibia.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

July 12, 2023 09:03 ET (13:03 GMT)

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