Strategic Partnership Between Sintana Energy and Corcel plc
TORONTO – Sintana Energy Inc. (TSX-V: SEI, OTCQB: SEUSF) is excited to announce a significant strategic partnership with Corcel plc, focusing on exciting prospects in Angola. Together, these companies bring a wealth of experience and ambition to explore vital energy resources in this promising region.
Details of the Agreement
The partnership sees Sintana acquiring a 5% net interest in KON-16, a key asset located within Angola's Kwanza Basin. This acquisition comes via a 5.88% equity stake in a newly formed Special Purpose Vehicle (SPV), which will ultimately hold Corcel’s consolidated 85% interest in KON-16. Furthermore, Sintana will secure a future 2.5% Net Profits Interest (NPI) tied to Corcel's interest in KON-16, with an upper limit of up to $50 million. After reaching this figure, the NPI percentage will reduce to 1.5%.
KON-16 Exploration Potential
KON-16 presents a compelling opportunity within the onshore Kwanza Basin, recognized for its rich history of successful exploration. The site is known to have robust petroleum systems across both post- and pre-salt intervals. Reports indicate multiple exploratory prospects, especially a significant multi-target prospect estimated to potentially offer several hundred million barrels of recoverable oil.
Strategic Study and Bid Agreement
In addition to their acquisition agreement, Sintana and Corcel have committed to a Joint Study and Bid Agreement. This framework establishes a collaborative approach for assessing and undertaking further oil and gas exploration and production ventures within Angola. Under this agreement, both companies will study and consider new opportunities, ensuring that their participation is voluntary and based on mutual consent on all commercial terms.
Vision for Future Growth
Robert Bose, the CEO of Sintana, emphasizes the strategic significance of this partnership, noting, "Our emerging partnership with Corcel embodies our approach to align with top-tier partners and deploy impactful capital towards promising resource outcomes that necessitate minimal additional investment." This vision extends to Sintana's hopes of broadening its engagement in the West African conjugate margin and leveraging this exciting opportunity in KON-16.
About Sintana Energy Inc.
Sintana Energy is actively involved in the exploration and development of petroleum and natural gas across six vast and promising onshore and offshore licenses, primarily in regions like Namibia and Colombia’s Magdalena Basin. The company is continually seeking new avenues for growth and partnership to enhance its resource development capabilities.
Corporate Contact Information
For further information or to stay updated on Sintana's corporate activities and project developments, stakeholders are encouraged to visit Sintana's website. Key contacts within the company include:
Robert Bose
Chief Executive Officer
Phone: 212-201-4125
Sean Austin
Vice-President
Phone: 713-825-9591
Jonathan Paterson
Founder & Managing Partner, Harbor Access
Phone: 475-477-9401
Frequently Asked Questions
What is the primary focus of the Sintana and Corcel partnership?
The partnership focuses on oil exploration and production opportunities in Angola, particularly in the KON-16 asset.
What does the Net Profits Interest (NPI) entail?
Sintana will receive a 2.5% NPI on Corcel's interest in KON-16 until revenue reaches $50 million, after which it reduces to 1.5%.
When is the expected completion of the KON-16 transaction?
The transaction is expected to be completed in Q3 2025, subject to definitive agreements and other conditions.
What are the potential resources at KON-16?
KON-16 holds substantial exploration prospects, with projections estimating several hundred million barrels of recoverable oil.
Where can I find more information about Sintana Energy?
For additional information, visit Sintana's official website, where you can also sign up for updates.
