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Thursday, April 25, 2024
Sintana Energy Inc. has entered into a definitive agreement with Crown Energy (Pty), a private Namibian company providing for the acquisition from Crown of up to 67% of the issued and outstanding shares of Giraffe Energy Investments (Pty) Ltd. Giraffe is the owner of a 33% interest in Petroleum Exploration License 79 (PEL 79) which governs blocks 2815 and 2915 located inboard of blocks operated by BW Energy, Rhino Resources and Shell. State firm NAMCOR is currently the operator with a 67% interest in PEL 79.
Highlights
The Acquisition provides Sintana with an attractive entry into a high impact license with significant upside. It allows Sintana to further expand its exposure to Namibia’s Orange Basin, emerging as the world’s next hydrocarbon province.
PEL 79 presents a unique opportunity to expand Sintana’s exposure to Namibia’s Orange Basin.
Through an emerging partnership with Quantum Xploration Inc. associated with the Acquisition, Sintana deepens its technical, operational and in-country capabilities in Namibia which position the Company for additional opportunities and growth. QXI is led by Mark Stearns who was previously Asset General Manager for Galp Energia in Namibia from 2017 to 2023 leading all upstream operations in country including on PEL 83 home to the multiple light-oil discoveries in the Mopane complex announced during Q1 of 2024. Together Sintana and QXI will focus on working with NAMCOR to identify and harness the opportunities and value of PEL 79.
Transaction Overview
The Acquisition is structured as an initial purchase of 49% of the issued and outstanding shares of Giraffe from Crown Energy which, prior to the Acquisition was the owner of 100% of the issued and outstanding shares of Giraffe, for cash consideration of US$2 million. The Company proposes to fund the cash consideration from resources on hand.
Further, Sintana retains an option to increase its ownership up to 67% of Giraffe anytime over the 5 years following closing based on the shares issued and outstanding at the time of the option exercise for an additional cash payment at the time of exercise of US$1 million.
The Acquisition remains subject to the satisfaction of various closing conditions and the receipt of all applicable approvals.
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