Woodside Enters Option Agreement on PEL 87 in the Orange Basin in Namibia - Sintana Retains a Carried Indirect Interest
March 02 2023 - 7:00AM
Sintana Energy Inc. (TSX-V: SEI, OTCQB: SEUSF) (“Sintana” or the
“Company”) is pleased to announce that Woodside Energy (GOM), Inc.,
a wholly-owned subsidiary of Woodside Energy Group Ltd.
(“Woodside”) has entered into an agreement whereby it has the
option to acquire a 56% Participating Interest in Petroleum
Exploration License 87 (“PEL 87”), in consideration for, among
other things, paying the full cost for a 3D-seismic survey covering
an area of at least 5,000 square kilometres within the area the
subject of PEL 87 (“Licence Area”) at an estimated cost of US$35
million.
Woodside will have a period of at least 180 days
after the delivery of the seismic survey data to exercise that
option.
If Woodside exercises its option, it has agreed
to enter into a farmout agreement whereby Woodside will carry the
existing joint venture partners during the drilling of the first
exploration well to be drilled on the Licence Area after the
completion of the seismic survey.
It is anticipated that seismic surveying will
start in March 2023 with fast-track processed results expected in
late June of this year.
Custos Investments (Pty) Ltd. (“Custos”) retains
a 15% interest in PEL 87 and benefits from this carry and other
elements of related farmout and joint operating agreements. Sintana
owns an indirect minority interest in Custos.
“The transaction strengthens the positioning of
both Custos and Sintana in Namibia. Specifically in an area that
has emerged as the exploration hot-spot in recent years,
particularly after the recent discoveries by Total Energies and
Shell,” said Knowledge Katti, Chairman and CEO of Custos and
Director of Sintana. “We are excited to make further progress with
Woodside on Block 2713. The block has been previously mapped with
good quality technical data and the new survey will enable us and
our co-venture partners to mature these exciting prospects for
drilling,” he added.
PEL 87 covering an area of 10,970 sq km, hosts
the large Saturn turbidite complex on-trend with the recent major
oil discoveries made in the Orange Basin including Total’s Venus-1
discovery and Shell’s Graff-1 and La Rona-1 and recent Jonker-1
(2023) discoveries have proven a working light oil system offshore
Namibia. Shell has now commenced a multi-well drilling program with
Jonker-1 near the Graff discovery, and Total has announced its
intention to deploy half its global exploration budget for 2023
using two rigs to drill further exploration and appraisal wells in
the Orange Basin.
“We are pleased to confirm further progress on
attracting capital and world class partners to our portfolio of
assets in the Orange Basin. The success in executing our strategy
speaks to the quality of our portfolio and the continuing emergence
of the Orange Basin as the world’s next great hydrocarbon
province,” said Robert Bose, President and Director of Sintana. “We
expect significant additional activity on our blocks and on those
around us over the next 12 to 18 months that will further
demonstrate the scale, scope and potential of our portfolio.”
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 intentions 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.
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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/9c578a41-ef08-4d25-89f3-fbb4544566bd
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