Sintana Energy has committed US$1 million to secure exclusivity over a potential indirect interest in PEL 37 in Namibia’s offshore Walvis Basin, as the company evaluates a strategic expansion alongside its existing regional portfolio.
In a market announcement released on 21 January 2026, the Canadian-listed company said it had entered into a letter of intent (LOI) granting exclusivity through to 30 April 2026 to conduct technical, commercial and legal due diligence on PEL 37, a licence covering 17,295 km² in shallow to mid-water depths offshore Namibia.
The block lies immediately north of PEL 82, where an affiliate of Chevron Corporation is the operator and where Custos Energy, an indirect Sintana affiliate, already holds a working interest.
Chevron has previously indicated its intention to accelerate exploration activity on PEL 82, including drilling an exploration well, with Custos carrying the initial operations.
PEL 37 is currently 100% owned and operated by Paragon Oil and Gas, a Namibian company.
The licence spans water depths of 100 metres to 1,500 metres, with identified prospects primarily between 300 and 600 metres, and hosts multiple large fan systems overlying a proven, oil-prone Aptian source rock.
Under the LOI, Sintana will assess the opportunity to contribute capital to meet work obligations in exchange for an equity stake in Paragon, thereby acquiring an indirect interest in PEL 37.
One-third of the US$1 million deposit is non-refundable if the company elects not to proceed.
Sintana chief executive officer Robert Bose said the agreement provided low-cost access to a high-impact opportunity in a core basin.
“The LOI we have entered into provides, at low cost, exclusivity over a material indirect interest in PEL 37, which is a high-impact block at the heart of the Walvis Basin,” Bose said. “PEL 37 is immediately adjacent to PEL 82, where we already have an interest and where an initial exploration well is expected over the coming quarters.”
He said the potential transaction would add optionality ahead of upcoming exploration activity.
“Investing for a material stake in PEL 37 would thus afford additional optionality associated with upcoming activity in our existing portfolio,” Bose said.
Sintana said further announcements would be made once due diligence is completed and commercial terms are finalised.
