Sintana Energy Inc (TSX-V:SEI, OTCQB:SEUSF) has struck a deal to open new exploration opportunities in Angola, giving it a stake in a project as well as a partnership to seek new targets.
A strategic partnership with Corcel sees Sintana acquire an indirect 5% net interest in the KON-16 block in the onshore Kwanza Basin.
Further collaboration establishes a framework to pursue and evaluate future projects in Angola.
Sintana is investing $2.5 million – with an initial $500,000 deposit, in the deal, which supports Corcel’s investment in exploring the asset. The transaction is expected to close during the third quarter.
“Our emerging partnership with Corcel is emblematic of our strategy to work with best-in-class partners and deploy high impact capital that brings us exposure to large potential resource outcomes that require little additional capital,” Sintana chief executive Robert Bose said.
He added: “We look forward to the expansion of our West African conjugate margin exposure through our acquisition of an interest in KON-16, one of the most promising blocks in a proven, underexplored basin.”
It comes as Corcel is consolidating and increasing its interest in Angola.
Deal details
Sintana is acquiring an indirect 5% net interest in the KON-16 block in the onshore Kwanza Basin – through a 5.88% equity stake in a new special purpose vehicle, and, it will also receive a 2.5% net profits interest on Corcel's share of KON-16 (up to $50 million, and 1.5% thereafter).