Sintana Energy Inc. (TSX-V: SEI, OTCQB: SEUSF) (“Sintana” or the
“Company”) is pleased to provide the following update on several
matters including a recently approved extension to Petroleum
Exploration License 87 (“PEL 87”), a year-end review and 2023
outlook, and summary of incentive awards approved at the Company’s
annual general meeting.
“2022 was a seminal year in Sintana’s history
underpinned most notably by our entry into Namibia in March,” said
Robert Bose, President and Director. “The significant progress in
2022 on both our licenses and on the blocks around us, particularly
in the offshore Namibian basins, continue to demonstrate the
timeliness of our entry. Multiple catalysts in the near-term
position the Company and its shareholders for success in 2023,” he
added.
PEL 87 Extension & Relinquishment
Waiver
Earlier this month, Namibia’s Minister of Mines
and Energy (the “Minister”) granted a second one-year extension to
the current, first four-year Initial Exploration Period associated
with PEL 87 located in Orange Basin.
Orange Basin – Block & Activity
Overview
The revised Initial Exploration Period will now
expire in January 2024. Three additional periods totaling six years
are available after the current period, with further possible
extensions thereafter. The extension will be used to conduct, among
other things, an extensive 3D seismic survey.
An obligatory relinquishment of the license area
of PEL 87 was waived by the Minister, preserving an area of 10,970
square kilometers.
Sintana maintains a 7.4% indirect, carried
interest in PEL 87. The other working interest owners include
National Petroleum Corporation of Namibia (“Namcor”) owner of 10%
and Pancontinental Orange (Pty) Ltd. (“Pancontinental”) the
operator and owner of a 75% interest.
PEL 87 includes the 2,400 square kilometer
Saturn turbidite complex that has been mapped by Pancontinental.
This complex has similar geologic characteristics and is on-trend
with TotalEnergies’ Venus oil discovery, made in February 2022.
The working interest partners continue to have
discussions with potential farmout partners.
Year End Review &
Outlook
2022 included numerous milestones and events
associated with the Company’s entry into Namibia. These included
the following:
- In January, amending the definitive
agreement to acquire a 49% interest in InterOil (Pty) Ltd., the
owner of indirect interests in 4 offshore and 1 onshore exploration
licenses in Namibia (the “Acquisition”) and launching a public
offering of units to support completion of the Acquisition.
- In February, the announcement by
Shell of its light oil discovery at Graff-1, and the announcement
by Total of its oil discovery at Venus-1.
- In March, closing of an
oversubscribed public offering raising gross proceeds of
C$13,282,500 and completion of the Acquisition.
- In June, the announcement of the
extension of the First Renewal Exploration Period for Petroleum
Exploration License 83 (“PEL 83”) providing for an increase to the
related work program.
- In October, the announcement that a
subsidiary of Chevron had entered into an agreement to acquire an
80% working interest and operatorship of Petroleum Exploration
License 90 (“PEL 90”) in exchange for upfront cash consideration
and a carry through 3D seismic program and an exploration well –
Sintana retains a 4.9% indirect working interest in the block and
benefits from the carry on its retained interest.
- In December, the extension of the
Initial Exploration Period and waiver of the mandatory
relinquishment associated with PEL 87.
The Company expects continued activity in 2023
on and around its offshore blocks including:
- Completion of a 3D seismic survey
and the potential drilling of an exploration well by Chevron on PEL
90.
- Potential farmout announcements on
PELs 83 and 87.
- Additional exploration and
appraisal activity by both Shell and TotalEnergies in the Orange
Basin on their respective blocks which immediately offset blocks in
which Sintana has indirect interests.
- Up to 5 wells drilled by Maurel
& Prom on PEL 44 in the Walvis Basin, which is located directly
below PEL 82 where Sintana has an indirect 4.9% interest.
“The numerous catalysts expected in 2023 will
provide many opportunities to assess and substantiate the
multi-billion barrel potential of the Namibian offshore as it
emerges as the next global hydrocarbon province,” said Robert Bose.
“We look forward to significant progress in the year ahead,” he
added.
Incentive Awards
The Company reports that its Board of Directors
has approved grants of a total of 6,400,000 incentive common stock
options to several directors and officers of the Company and six
consultants. The options have an exercise price of $0.11, vest in
three equal tranches over the next 24 months and will expire on
December 19, 2032.
The Company also approved grants to several
directors and officers of an aggregate of 3,900,000 restricted
share units which will vest on January 3, 2024.
ABOUT SINTANA ENERGY:
The Company is engaged in petroleum and natural
gas exploration and development activities in Colombia’s Magdalena
Basin and five large, highly prospective, onshore and offshore
petroleum exploration licenses in Namibia. Sintana’s
exploration strategy is to acquire, explore, develop and produce
superior quality assets with substantial reserves potential.
On behalf of Sintana Energy Inc.,“Douglas G.
Manner”Chief Executive Officer
For additional information or to sign-up to receive periodic
updates about Sintana’s projects, and corporate activities, please
visit the Company’s website at www.sintanaenergy.com
Corporate Contacts: |
|
|
|
Investor Relations Advisors: |
|
|
|
|
|
Douglas G. Manner |
|
Sean J. Austin |
|
Jonathan Paterson |
Chief Executive Officer |
|
Vice-President |
|
Founder & Managing
Partner |
832-279-4913 |
|
713-825-9591 |
|
Harbor Access |
|
|
|
|
475-477-9401 |
Forward-Looking Statements
Certain information in this release are forward-looking
statements. Forward-looking statements consist of statements that
are not purely historical, including statements regarding beliefs,
plans, expectations or intensions for the future, and include, but
not limited to, statements with respect to potential future
farmout agreements on PEL 83 and/or PEL 87, and proposed future
exploration and development activities on PEL 90 and neighbouring
properties, as well as the prospective nature of the Company’s
property interests. Such statements are subject to
risks and uncertainties that may cause actual results, performance
or developments to differ materially from those contained in the
statements, including, but not limited to risks relating
to the receipt of all applicable regulatory approvals,
results of exploration and development activities, the ability to
source joint venture partners and fund exploration, permitting and
government approvals, and other risks identified in the Company’s
public disclosure documents from time to time. 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 assumes no obligation to update such information, except as
may be required by law.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/115d7821-45ac-40f0-9f45-8b373285c63f
Sintana Energy (TSXV:SEI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Sintana Energy (TSXV:SEI)
Historical Stock Chart
From Jul 2023 to Jul 2024