In a definitive agreement with private Namibian company, Crown Energy, Sintana Energy will be acquiring 67% of the issued and outstanding shares of Giraffe Energy Investments from Crown
Giraffe owns a 33% interest in Petroleum Exploration License 79 (PEL 79) that includes blocks 2815 and 2915.
Sintana will initially purchase a 49% of Giraffe's shares for cash consideration of US$2mn that will be met from resources on hand. It can further expand the ownership within five years on an additional cash payment at the time of exercise of US$1mn.
The PEL 79 blocks lie amid those operated by BW Energy, Rhino Resources and Shell. BW Energy acquired 4,600 square kilometers of new 3D seismic over PEL 3, located directly west of PEL 79, in 2023 and has moved to initiate an oil-focused exploration campaign.
Rhino Resources, operator of PEL 85 which sits directly outboard to the west of the southern reach of PEL 79, is working on the planning and contracting of a two-well campaign that can include drilling of up to 10 wells.
More than 4,760 km of 2D seismic, 1137 sq km of 3D seismic and one well with gas shows (Kudu source rock) make up the region.
The acquisition also brings in an emerging partnership with Quantum Xploration Inc, which gives Sintana access to the company's deep expertise on all Namibian upstream operations.
Expansion of Orange Basin platform
“We are pleased to announce the potential expansion of our Orange Basin platform through the Acquisition of a significant stake in Giraffe Energy. Together with our partners at QXI and Giraffe, we look forward to working with NAMCOR to fully realise the significant geologic, commercial, and strategic value of PEL 79,” said Robert Bose, CEO and board member of Sintana Energy.
“We are pleased to welcome Sintana, together with QXI, to Giraffe Energy,” said Jeremy Hangula, director of Giraffe. “Our combined resources position us to capture the unique value of PEL 79,” he added.
“As the Orange Basin continues to deliver outstanding exploration success, we are delighted to work with Sintana and Crown to enhance the technical and operational capabilities at Giraffe. We look forward to supporting NAMCOR with their continuing efforts to unlock the full exploration potential of this highly prospective license.” said Mark Stearnes, CEO of QXI.
In conjunction with the Acquisition, an 8% interest in Giraffe’s common equity will be contributed to a community trust. This contribution, initiated and supported by the Knowledge Katti Foundation, will establish the first vehicle of its kind in Namibia providing a direct mechanism to bring the benefits of the oil and gas industry to local communities.
“We are grateful for the efforts of the Giraffe owners and to the Knowledge Katti Foundation for this groundbreaking initiative. It underscores the importance of ensuring the benefits and opportunities of this emerging industry are shared broadly shared with the local communities.” said Neville Andre, Governor of Erongo.
“The Knowledge Katti Foundation is proud to play an instrumental role in this initiative ensuring that local communities, initially in Erongo and then expanding to include Karras, are participants in the benefits and outcomes of the oil and gas industry as Namibia emerges as one of the world’s great hydrocarbon provinces,” said Knowledge Katti, Founder of the Knowledge Katti Foundation.
The acquisition remains subject to the satisfaction of various closing conditions and the receipt of all applicable approvals, including, without limitation, the approval of the TSX Venture Exchange.
To know more about Sintana's activities in Namibia, read https://oilreviewafrica.com/exploration/exploration/sintana-energy-provides-update-from-namibias-orange-basin
