Sintana Energy Eyes Indirect Stake in Namibia’s Walvis Basin Through New Partnership
Canada-headquartered oil and natural gas exploration player Sintana Energy has entered into a letter of intent to secure a period of exclusivity regarding an investment that unlocks an indirect interest in PEL 37 off the coast of Namibia. The move enables a period of exclusivity, initially through to April 30, 2026, to undertake technical, commercial, and legal due diligence on PEL 37 and Paragon Oil and Gas, a local Namibian company. The letter of intent will also allow time to negotiate appropriate terms and documentation for the contribution of capital by the Canadian firm to enable work obligations to be satisfied.
As a result, the company will become a shareholder of Paragon and thus an indirect holder of an interest in PEL 37 in the heart of the Walvis Basin, immediately to the north of PEL 82, currently operated by an affiliate of Chevron, where Custos Energy, an indirect affiliate of Sintana, is a working interest owner. The operator previously announced its intention to accelerate exploration activities on PEL 82, including drilling an exploration well.
Based on the letter of intent, Sintana will pay a deposit of $1 million to secure the exclusivity, of which one-third is non-refundable if the firm, for any reason, elects not to proceed. PEL 37, which is currently held 100 percent and operated by Paragon, covers an area of 17,295 square kilometers, in relatively shallow water between 100 and 1,500 meters, with identified prospects at water depths between 300 and 600 meters, and with multiple large fans directly overlying a proven, mature oil-prone Aptian source rock.
Robert Bose, CEO of Sintana, commented that the letter of intent provides, at low cost, exclusivity over a material indirect interest in PEL 37, which is a high-impact block at the heart of the Walvis Basin. He noted that PEL 37 is immediately adjacent to PEL 82, where the company already has an interest and where an initial exploration well is expected over the coming quarters. Investing for a material stake in PEL 37 would thus afford additional optionality associated with upcoming activity in the existing portfolio. In the coming months, and with the benefit of the exclusivity secured, the company will undertake the work needed to assess whether it wishes to pursue this strategic expansion of its core portfolio, with further announcements to be made in due course.
Sintana Energy is working to expand its global footprint, as illustrated by its move to obtain acreage in Uruguay through the acquisition of Challenger Energy Group, the Isle of Man-headquartered oil and gas company.
Sources: offshore-energy.biz, energy-pedia.com, namibiaoilandgas.com
