Portfolio Update on Petroleum Exploration License 79
TORONTO — Sintana Energy Inc. (TSX-V: SEI, OTCQX: SEUSF) is excited to share important developments regarding Petroleum Exploration License 79 (PEL 79), which encompasses blocks 2815 and 2915 in Namibia’s promising Orange Basin.
Extension Announcement for PEL 79
Sintana's joint venture partners in PEL 79 include the National Petroleum Corporation of Namibia (NAMCOR) and Giraffe Energy Investments, where Sintana holds a 49% interest. Recently, the Ministry of Industries, Mines and Energy of Namibia granted a 12-month extension for the second renewal exploration period, effectively extending the license period to July 2026.
Understanding the Joint Venture Setup
In this venture, Giraffe Energy boasts a 33% interest, while NAMCOR serves as the operator with a 67% share. PEL 79 is strategically located near blocks operated by major players like BW Energy, Rhino Resources, and Shell, enhancing its potential for exploration and development.
Value Proposition of PEL 79
PEL 79 is positioned to deliver considerable value, supported by a substantial prospect inventory consisting of over 4,760 km of 2D seismic data, 1,137 km² of 3D seismic data, and a well that has recorded gas shows intersecting the Kudu source rock.
Prospective Developments in the Region
Adjacent to PEL 79 is a microregional area that is becoming increasingly focused on oil-weighted prospects. Notably, Rhino Resources, which operates PEL 85 to the west, has successfully drilled two wells, including the Capricornus-1X discovery well, which yielded an impressive flow test of over 11,000 barrels per day of light oil from a 38-meter net oil-bearing reservoir. Further drilling activities are anticipated to kick off in the third quarter, targeting the Volans prospect along with possible appraisal wells.
BW Energy has made significant strides by acquiring 4,600 square kilometers of new 3D seismic over PEL 3, which is directly west of PEL 79. They are set to commence an exploration and appraisal campaign, which includes drilling the Kharas well planned for the second half of the year.
Management Insights and Future Outlook
Robert Bose, Chairman of Giraffe and Chief Executive Officer of Sintana, expressed gratitude for NAMCOR's leadership in securing this extension for PEL 79. He noted, “Extending our engagement during this crucial period of exploration activity enables us to realize the geological and commercial potential of PEL 79.” Bose added that the potential to achieve high-impact advancements in PEL 79 positively influences the overall prospects of their Namibian offshore portfolio, and he anticipates notable progress across all their licenses in the upcoming quarters.
About Sintana Energy
Sintana Energy is actively pursuing exploration and development projects across five extensive and promising onshore and offshore petroleum exploration licenses in Namibia and the Magdalena Basin in Colombia.
For any inquiries or to receive regular updates regarding Sintana's corporate activities and projects, you are encouraged to visit the Company’s website at www.sintanaenergy.com.
Frequently Asked Questions
What is PEL 79?
PEL 79 (Petroleum Exploration License 79) pertains to exploration blocks in Namibia's Orange Basin, vital for potential oil and gas reserves.
Who are Sintana Energy's partners in PEL 79?
Partners include the National Petroleum Corporation of Namibia (NAMCOR) and Giraffe Energy Investments, with Sintana holding a 49% stake.
What does the recent extension signify for Sintana Energy?
The 12-month extension provides additional time for exploration, enhancing the potential for significant discoveries and developments in the region.
What is the significance of the seismic data collected?
The seismic data underpins the existence of prospective areas for oil and gas exploration, vital for attracting further investments and drilling activities.
What future activities are planned for PEL 79?
Further exploration and drilling activities are expected to assess the prospectivity of the license, enhancing overall value for Sintana's portfolio.
