Sintana Energy Inc (TSX-V:SEI, OTCQB:SEUSF) revealed that it has received notice from Exxon Mobil Corporation (NYSE:XOM) that it will withdraw from a joint operating agreement (JOA) with Patriot Energy Oil and Gas Inc, a subsidiary of Sintana, effective May 31, 2023.
ExxonMobil also said it intends to withdraw from a contract with the Agencia Nacional de Hidrocarbons (ANH) after obtaining the necessary government approvals.
Both the JOA and the ANH contract relate to the VMM-37 block, a 43,158-acre property in Colombia's Middle Magdalena Valley Basin.
Sintana's CEO, Doug Manner, expressed disappointment at the news, saying: "We are disappointed that our VMM-37 partner for more than a decade, ExxonMobil, has voluntarily chosen to withdraw from both the JOA and Contract. Management has engaged legal and technical advisors for assistance in addressing this unexpected change of events.”
The company stated that it reserves its rights under the contracts governing VMM-37 and applicable laws and regulations. It will provide further updates as additional information becomes available.
Sintana Energy is involved in petroleum and natural gas exploration and development activities in the Magdalena Basin in Columbia, as well as five onshore and offshore petroleum exploration licenses in Namibia.
Contact the author at jon.hopkins@proactiveinvestors.com