Sintana Energy has entered a letter of intent to acquire an indirect interest in PEL 37 in the Walvis Basin offshore Namibia, the company announced on Wednesday.
The block spans 17,295 square kilometres in relatively shallow waters, ranging in depth from 100 to 1,500 metres. Prospects have already been identified at water depths between 300 and 600 metres.
PEL 37 is 100% owned and operated by Namibian company Paragon Oil and Gas and lies directly north of PEL 82, where Sintana already holds an interest through Custos Energy. PEL 82 is operated by an affiliate of Chevron, which has announced plans to accelerate exploration activities on the block, with Custos carried for initial operations.
The letter of intent gives Sintana a period of exclusivity to carry out a technical and commercial appraisal of the asset and to negotiate terms for becoming a partner in the block, including capital contributions towards carrying out work obligations.
“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. Investing for a material stake in PEL 37 would afford additional optionality associated with upcoming activity in our existing portfolio,” said Sintana CEO Robert Bose.
Sintana will pay USD 1 million to secure this exclusivity, which initially runs until April 30, 2026. One-third of the deposit is non-refundable in the event that Sintana decides against moving forward with the deal.
Listed in Toronto and London, Sintana Energy is engaged in the acquisition, exploration and development of high-impact oil and gas assets in frontier markets. The company’s current portfolio includes interests and pending acquisitions in Namibia, Uruguay, Angola, Colombia and The Bahamas.