Sintana Energy acquires stake in Giraffe Energy to enhance presence in Namibia’s Orange Basin
Sintana Energy Inc. (TSX-V: SEI, OTCQB: SEUSF) has successfully completed its acquisition of an initial 49% interest in Giraffe Energy Investments (Pty) Ltd. for a transaction value of US$2 million. This strategic acquisition, finalized through a definitive agreement with Crown Energy (Pty) Ltd., dated April 24, 2024, positions Sintana in the promising Petroleum Exploration License 79 (PEL 79) in Namibia’s Orange Basin.
Strategic Expansion in Emerging Hydrocarbon Province
PEL 79 covers blocks 2815 and 2915 and is currently operated by the National Petroleum Corporation of Namibia (NAMCOR), holding a 67% interest. This acquisition places Sintana alongside notable operators like BW Energy, Rhino Resources, and Shell in one of the last remaining licenses not managed by a private operator in the region.
The deal grants Sintana an attractive entry point into a high-impact license with considerable upside potential, further expanding its exposure to the emerging hydrocarbon province of the Orange Basin. The region is poised to become a significant player in the global oil market, underscored by recent exploratory efforts including BW Energy’s acquisition of 4,600 square kilometers of new 3D seismic data in 2023 and Rhino Resources’ plans for a multi-well campaign.
Sintana Energy Inc. enhances its strategic position in Namibia’s Orange Basin with a new acquisition in Giraffe Energy Investments.
Leveraging Technical and Operational Synergies
As part of the acquisition, Sintana retains the option to increase its stake in Giraffe to 67% with an additional investment of US$1 million over the next five years. This flexibility in investment demonstrates Sintana’s commitment to gradually deepening its footprint in the region based on evolving market dynamics and exploration outcomes.
Moreover, the acquisition is complemented by a burgeoning partnership with Quantum Xploration Inc. (QXI). Led by industry veteran Mark Stearns, former Asset General Manager for Galp Energia in Namibia, QXI brings substantial technical and operational expertise to the table. This partnership is set to leverage local insights and advanced exploration techniques to optimize the value and output of PEL 79.
Economic and Strategic Implications for Sintana
This acquisition is a pivotal move for Sintana, strategically positioning the company in an area marked by a dynamic regional exploration climate focused on oil prospectivity. With significant existing 2D and 3D seismic coverage and the backdrop of recent discoveries like those at Mopane, Sintana is well-placed to deploy innovative approaches and insights into the potential of PEL 79.
The expanded technical capabilities and operational alliances fostered through this deal are expected to significantly enhance Sintana’s ability to navigate the complexities and opportunities of the Namibian oil landscape. This strategic foothold is anticipated to serve as a catalyst for further exploration successes and economic growth, both for Sintana and the broader Namibian oil sector.