Sintana Energy Inc (TSX-V:SEI, OTCQB:SEUSF, FRA:3ZX1, AIM:SEI) has secured exclusive rights to pursue a potential investment in a large offshore exploration block in Namibia’s Walvis Basin, expanding its footprint in one of the world’s most closely watched emerging oil plays.
The company announced it has signed a letter of intent for a period of exclusivity through to 30 April 2026 to negotiate a deal for an indirect stake in Petroleum Exploration Licence (PEL) 37, which covers 17,295km² of seabed in relatively shallow waters off the Namibian coast.
PEL 37 lies directly north of PEL 82, where Chevron is preparing to drill an exploration well. Custos Energy, an affiliate of Sintana, already holds a carried interest in PEL 82, which has been the focus of increasing attention amid a wave of discoveries along Namibia’s offshore margin.
Under the terms of the agreement, Sintana will pay a $1 million deposit to secure the exclusivity, one-third of which is non-refundable should the company choose not to proceed.
The deal would see Sintana contribute capital to satisfy licence work obligations in exchange for becoming a shareholder in Paragon Oil and Gas, the Namibian company that currently holds and operates PEL 37.
The licence area is understood to contain several large geological features, including deepwater fan systems above a proven Aptian-age source rock known to be oil-prone.
Robert Bose, chief executive of Sintana, described the block as “a high-impact” opportunity. “The LOI we have entered into provides, at low cost, exclusivity over a material indirect interest in PEL 37,” he said.
“Investing for a material stake in PEL 37 would thus afford additional optionality associated with upcoming activity in our existing portfolio.”
Sintana said it will now conduct technical, legal and commercial due diligence on the project and operator before deciding whether to proceed. Further updates are expected in the coming months.