Galp Energia shares soar on Brazilian oil discovery

12th November 2007, Comments 0 comments

12 November 2007 , MADRID - The share price of Galp Energia shot up on Friday after the Portuguese oil company announced a huge oil discovery in Brazil by a consortium of which it forms part.

12 November 2007

MADRID - The share price of Galp Energia shot up on Friday after the Portuguese oil company announced a huge oil discovery in Brazil by a consortium of which it forms part.

Galp's stock rose 24.69 percent to €15.40 after an intraday high of  - 15.43. The gains pushed Galp's market capitalization up to €
12.4 billion.

Galp said Thursday that the consortium leader, state-owned Brazilian oil company Petroleo Brasileiro (Petrobas), had estimated recoverable light-grade oil and natural gas reserves at the Tupi Sul well in the Santos Basin off the coast of Brazil at between 5 and 8 billion barrels of oil equivalent.

Light-grade oil is more valuable and cheaper to refine than heavy crude.

Galp said that if the find is confirmedm, it "would significantly increase Brazil's petroleum reserves, placing it among a select group of countries with substantial oil and natural gas reserves."

The new deposits would put Brazil among the top 10 countries with the biggest oil reserves.

Galp holds a 10 percent stake in the BM-S-11 block where the Tupi Sul well is located. Petrobas has a 65-percent interest, while Britain's BG Group holds the re maining 25 percent.

Galp has stakes of up to 20 percent in three other blocks in the Santos Basin, which it said have "high exploration potential."

[Copyright EL PAÍS, SL. 2007]

Subject: Spanish news


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