Sintana Provides Further Update Regarding Proposed Acquisition of Strategic Portfolio of Petroleum Exploration License Interests in Namibia
November 26 2021 - 5:00PM
Sintana Energy Inc. (TSXV: SEI) (the “
Company” or
“
Sintana”) is pleased to provide a further update
with respect to its previously announced proposed acquisition (the
“
Acquisition”) of a 49% interest in all of the
issued and outstanding shares of Inter Oil (Pty) Ltd.
(“
Inter Oil”) from Grisham Assets Corp.
(“
Grisham”), all pursuant to a definitive
agreement dated September 13, 2021 between the Company, Grisham,
Inter Oil and Custos Energy (Pty) Ltd. (a subsidiary of Inter Oil)
(the “
Definitive Agreement”).
As previously announced, Inter Oil indirectly
holds a strategic portfolio of offshore petroleum exploration
license interests and the completion of the Acquisition was
contingent upon the grant of a 90% interest in onshore Block 1918B
to an indirect subsidiary of Inter Oil, of which the Company will
acquire an indirect 30% interest (the “Onshore
License”). Sintana is pleased to announce that the Onshore
License has now been granted by the applicable Namibian
authorities, thereby satisfying one of the most material conditions
to the completion of the Acquisition.
In addition, the Company is pleased to announce
that it received the requisite shareholder approval for Charlestown
Energy Partners, LLC and its associates to become “control persons”
of Sintana, as defined in the regulations of the TSX Venture
Exchange (the “TSXV”), at its recent annual and
special shareholders meeting. As previously reported, Charlestown
has commented to subscribe for an aggregate of 33,600,000 Common
Shares at a price of Cdn$0.15 per share to raise aggregate gross
proceeds of Cdn$5,040,000 (the “Private
Placement”), which funds will be utilized in part to fund
the aggregate consideration for the Acquisition. It is anticipated
that Charlestown and its associates will become “control persons”
of Sintana immediately following the completion of the Private
Placement and Acquisition.
The completion of the Acquisition and Private
Placement remain subject to various additional conditions including
final approval of the TSXV with respect to each of the Acquisition
and Private Placement, the delivery and execution of satisfactory
title opinions and a shareholders agreement acceptable to Sintana,
and the completion of joint operating agreements and petroleum
agreements with third parties governing certain of the assets
currently held by Inter Oil. Accordingly, there can be no assurance
that the Acquisition or Private Placement will be completed upon
the terms currently proposed or at all. For further details, please
refer to the press releases of Sintana dated September 15 and
November 15, 2021, available on SEDAR at www.sedar.com.
About Sintana
The Company is currently engaged in hydrocarbons
exploration and development activities in Colombia’s Magdalena
Basin. Sintana’s business strategy is to acquire, explore, develop
and produce superior quality assets with significant reserves
potential.
On behalf of Sintana Energy Inc.,
“Douglas G. Manner” Chief Executive Officer
For additional information regarding Sintana and
ongoing corporate activities, please visit the Company’s website at
www.sintanaenergy.com.
Corporate
Contact: |
|
Corporate
Contact: |
Douglas G. Manner |
|
Sean J. Austin |
Chief Executive Officer |
|
Vice President |
Tel: 832.279.4913 |
|
Tel: 713.825.9591 |
Neither the TSX Venture Exchange nor its
regulation services provider has reviewed or accepted
responsibility for the adequacy or accuracy of this press
release.
Forward Looking Statements – Certain information
set forth in this news release may contain forward-looking
statements that involve substantial known and unknown risks and
uncertainties, including risks related to the satisfaction of all
outstanding closing conditions for the completion of the
Acquisition and/or Private Placement, currency risk, political and
security risks relating to operations in Namibia, availability of
capital, permitting and land title issues, the risks inherent in
oil and gas exploration and development activities, and such other
risk factors as are set forth in the Company’s continuous
disclosure documents available on SEDAR from time to time. These
forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond the control of the
Company. Readers are cautioned that the assumptions used in the
preparation of such information, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on forward-looking statements.
The Company disclaims any obligation to update the forward looking
statements contained herein other than as required under applicable
securities laws.
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