• Sintana secures exclusivity to assess Namibia offshore licence PEL 37

• Letter allows due diligence until April 30, includes $1 million deposit

• Move expands Sintana’s portfolio alongside existing Namibian offshore stakes

Canadian-based Sintana Energy said on Wednesday that it has signed a letter of intent giving it exclusive rights to assess a potential investment in offshore exploration licence PEL 37 in Namibia’s Walvis Basin.

“In the coming months, and with the benefit of the exclusivity secured, we will undertake the work needed to assess whether we wish to pursue this strategic expansion of our core portfolio,” CEO Robert Bose said.

Exclusivity runs until April 30 and allows Sintana to conduct technical, commercial and legal due diligence on the licence and its holder, Paragon Oil and Gas, which holds 100% of the permit. In return, Sintana has agreed to pay a $1 million deposit, a third of which will be retained by Paragon if the transaction does not proceed.

PEL 37 covers about 17,295 square kilometres and lies immediately north of PEL 82, another offshore licence in which an entity affiliated with Sintana already has an economic interest. Signing a definitive agreement would make Sintana a shareholder of Paragon, giving it an indirect interest in PEL 37. Sintana said no final investment decision has been made.

The move builds on Sintana’s existing position in offshore Namibia, where it holds several interests, particularly in the Orange Basin. There, it has a stake in PEL 83, holding a 10% indirect interest through a local structure, Agence Ecofin has reported. The licence is now entering a new drilling phase led by Portugal’s Galp Energia as part of exploration and appraisal work.

PEL 83 is one of Sintana’s main offshore Namibian assets, alongside licences PEL 79, 82, 87, 90 and 103, according to the company’s website.

PEL 79, covering blocks 2815 and 2915, is held through a joint venture involving NAMCOR, Namibia’s national oil company, and Giraffe Energy Investments. Sintana holds a 49% indirect interest in Giraffe Energy Investments.

Abdel-Latif Boureima