Sintana Energy has signed an agreement to acquire EPL 79 in the Orange Basin for (N$36.7 million (US$2 million).
The company agreed with Crown Energy to acquire up to 67% of the Giraffe Energy Investments’ shares.
Giraffe owns a 33% interest in PEL 79, which governs blocks 2815 and 2915 and is in the blocks operated by BW Energy, Rhino Resources, and Shell.
Namcor is currently the operator with a 67% interest in PEL 79.
Sintana has teamed up with Quantum Xploration Inc., led by Mark Stearns, who was previously Asset General Manager for Galp Energia in Namibia from 2017 to 2023.
Stearns led Galp’s all upstream operations in Namibia, including on PEL 83, home to the multiple light-oil discoveries in the Mopane complex announced during Q1 of 2024.
Sintana and Quantum Xploration will focus on working with Namcor to identify and harness the opportunities and value of PEL 79.
Sintana will purchase 49% of Giraffe Energy’s issued and outstanding shares from Crown Energy, which, before the acquisition, owned 100% of the issued and outstanding shares.
The company proposes to fund the cash consideration from resources on hand.
Further, Sintana will retain an option to increase its ownership up to 67% of Giraffe anytime over the five years following closing based on the shares issued and outstanding at the time of the option exercise for an additional cash payment of US$1 million at the time of exercise.
The acquisition remains subject to the satisfaction of various closing conditions and the receipt of all applicable approvals, including, without limitation, the approval of the TSX Venture Exchange.
Sintana holds a limited carried interest in the PEL 90 license (Block 2813B), which covers 5,433 km2 offshore southern Namibia, in the northern Orange Basin, in water depths between 2,300m and 3,300m.
The company says the acquisition provides an attractive entry into a high-impact license with significant upside and further expands its exposure to Namibia’s Orange Basin, emerging as the world’s next hydrocarbon province.
“PEL 79 presents a unique opportunity to expand Sintana’s exposure to Namibia’s Orange Basin,” Sintana says, adding that it is one of the last remaining licenses not operated by a private operator.
According to Sintana, the acquisition will deepen the company’s technical, operational, and in-country capabilities in Namibia, positioning it for additional opportunities and growth.
Sintana CEO Robert Bose said they are pleased to announce the potential expansion of our Orange Basin platform by acquiring a significant stake in Giraffe Energy.
Giraffe Energy director Jeremy Hangula said the combined resources position the joint venture to capture the unique value of PEL 79.
Stearns said that as the Orange Basin continues to deliver outstanding exploration success, they are delighted to work with Sintana and Crown to enhance Giraffe’s technical and operational capabilities.
“We look forward to supporting Namcor with their continuing efforts to unlock the full exploration potential of this highly prospective license,” Stearns said.
An 8% interest in Giraffe’s common equity will be contributed to the Knowledge Katti Foundation community trust, the first vehicle in Namibia, providing a direct mechanism for bringing the oil and gas industry’s benefits to local communities.
Erongo governor Neville Andre thanked the Giraffe owners and the Knowledge Katti Foundation for this groundbreaking initiative.
“It underscores the importance of ensuring the benefits and opportunities of this emerging industry are shared broadly shared with the local communities.” Andre said.
Katti said the Foundation is proud to play an instrumental role in this initiative, ensuring that local communities, initially in Erongo and then expanding to include Karas, are participants in the benefits and outcomes of the oil and gas industry as Namibia emerges as one of the world’s great hydrocarbon provinces.
