Rhino Resources has confirmed a sequence of oil and gas-condensate discoveries offshore Namibia, marking significant progress for the country’s emerging deepwater sector.
Operating under Petroleum Exploration Licence 85 (PEL 85), the company has drilled two wells — Capricornus-1X and Volans-1X — in the deepwater Orange Basin, confirming the presence of light oil and high-liquid gas-condensate systems.
The Capricornus-1X well was spudded on 17 February 2025 using the Noble Venturer drillship. Located approximately 240 kilometres off Namibia’s southern coast, the well lies in water depths exceeding 2,700 metres.
Drilling reached total depth on 2 April 2025. According to Rhino Resources, wireline logging identified a 38-metre net pay interval of high-quality sandstone with no observed water contact.
Testing confirmed the presence of 37° API light oil with low gas-to-oil ratios and minimal contaminants.
In constrained production tests, the well flowed at approximately 11,000 barrels of oil per day on a 40/64-inch choke, demonstrating strong deliverability under deepwater conditions.
PEL 85, also known as Block 2914A, is operated by Rhino Resources Namibia (Pty) Ltd, which holds a 42.5% working interest. Its co-venturers are Azule Energy — the BP–Eni joint venture — with a 42.5 per cent stake, the National Petroleum Corporation of Namibia (Namcor) with a 10 per cent stake, and Korres Investments with a 5 per cent stake.
The licence covers a large tract of Namibia’s southern Orange Basin and lies adjacent to acreage held by major international operators. The partnership combines Rhino’s local presence with Azule Energy’s deepwater engineering experience and Namcor’s national participation.
Following the success of Capricornus, Rhino Resources drilled the Volans-1X exploration well in the same licence area to test a new structure within the Upper Cretaceous sequence.
According to Offshore Magazine and company updates, drilling began in the third quarter of 2025 and encountered a 26-metre gas-condensate pay zone in high-quality sandstone reservoirs. Logging confirmed strong petrophysical characteristics and the absence of water contact.
The fluids recovered showed high liquid yield and favourable composition, with low CO₂ and no hydrogen sulphide detected.
The Volans-1X result confirmed that the Orange Basin contains multiple hydrocarbon systems across the southern Namibian margin.
Whereas Capricornus established a light-oil play, Volans demonstrated the presence of condensate-rich gas, giving PEL 85 a dual-phase hydrocarbon profile. Offshore Magazine described the discovery as a “new play fairway” with potential to expand Namibia’s liquids-rich portfolio.
Rhino stated that the results would be subject to further evaluation through seismic integration and potential appraisal drilling in 2026.
Each deepwater well in the block is estimated to cost between US$90 million and US$110 million, depending on rig time and water depth.
Industry data indicate that the two-well programme represents an investment of more than US$200 million. Funding has been supported through equity contributions from the partners and contractual arrangements with drilling and service providers.
The programme forms part of Namibia’s broader offshore exploration campaign that has seen record investment in the Orange Basin since 2022.
Namcor has described Rhino’s findings as “transformational,” noting that the mix of oil and gas-condensate discoveries diversifies Namibia’s offshore resource base beyond the oil-dominant systems proven further north at Venus, Graff, and Mopane.
The state oil company confirmed that appraisal work on PEL 85 will include reprocessing of three-dimensional seismic data and potential extended production testing to determine flow stability and reservoir connectivity.
According to Reuters and Offshore Magazine, Rhino Resources and its partners plan to conduct two appraisal wells in 2026.
The objectives include delineating reservoir boundaries, confirming pressure communication between the structures, and obtaining additional data for resource certification.
The partnership is also preparing a field development concept study supported by Azule Energy’s engineering division. Depending on the outcome of the appraisal and feasibility work, a pre-Front End Engineering Design (pre-FEED) decision could follow in 2027.
Industry analysis suggests that the light oil encountered at Capricornus and the gas-condensate at Volans are both of export quality, with low sulphur and high API gravity. Gas-to-oil ratios across the tested intervals indicate potential for both liquids production and long-term gas monetisation once commercial frameworks are in place.
Rhino has stated that the oil produced during tests is comparable to West African deepwater crudes in purity and viscosity.
Rhino’s data room for PEL 85 has drawn preliminary attention from international operators, including several major companies evaluating farm-in options.
While no transaction has been finalised, the discoveries have raised the profile of the block within global exploration circles. Azule Energy’s involvement provides access to established deepwater production expertise, aligning the project with international standards for reservoir evaluation and development planning.
The two discoveries have confirmed PEL 85 as one of Namibia’s most advanced privately operated offshore blocks.
With appraisal drilling planned and a field concept under review, Rhino Resources has positioned itself for a transition from the exploration to the appraisal phase within two years of its first well.
Namcor’s participation ensures continued state oversight and alignment with national energy objectives as Namibia prepares for potential first production later in the decade.
