Galp Energia. SGPS, S.A.

Galp Energia. SGPS, S.A. : announcement of a gi...

        Galp Energia announces a giant gas discovery offshore Mozambique

In  accordance with the terms of  article 248 of the Portuguese Securities Code,
Galp   Energia,  SGPS,  S.A.  (Galp  Energia)  hereby  discloses  the  following

Galp  Energia, partner  of the  consortium for  Area 4 in Rovuma basin, offshore
Mozambique,  announces  a  giant  natural  gas  discovery  at the Mamba South 1
prospect,  in that area. The discovery well encountered a total of 212 meters of
continuous gas pay in high-quality Oligocene sands.

The  Mamba South  1 discovery well  is located  in water depths of 1,585 meters,
approximately  40 km  off  Cabo  Delgado  coast,  in  the  Northern  offshore of
Mozambique. This is the first exploration well drilled in Area 4. Results exceed
pre-drill expectations and confirm the Rovuma Basin as a world-class natural gas

The  well will  be drilled  to reach  an expected  total depth  of around 5,000
meters.  After completion of drilling and  testing activities, the rig will move
to drill the second commitment well, Mamba North 1.

The consortium considers that this impressive discovery can lead to at least 15
tcf of gas in place in the Mamba South Area, where the potential of the Tertiary
Play that exists in Area 4 will be further assessed under the present drilling.

The  outstanding volume of natural gas discovered will lead to a large scale gas
development  with a  combination of  both export  to regional  and international
markets  through LNG and  supply to the  domestic market. This  will support the
industrial and economic growth of Mozambique.

Galp Energia holds a stake of 10% in the contractor group that explores Area 4,
while  Eni (operator)  holds 70%, KOGAS  holds 10% and  ENH holds  the remaining
10%, carried through the exploration phase.

Galp Energia. SGPS, S.A., Public Company
Investor Relations and Corporate Communication Division

Rua Tomás da Fonseca, Torre A
1600-209 Lisbon, Portugal
Tel: +351 217 240 866
Fax: +351 217 242 965
Email: [email protected]

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Source: Galp Energia. SGPS, S.A. via Thomson Reuters ONE