Sintana Energy Inc. (LON:SEI, TSX-V:SEI, OTCQX:SEUSF) has announced the entry into definitive agreements for the acquisition of an interest in the Block KON-16 in the onshore Kwanza Basin, Angola, first announced on 14 May 2025.
The agreements comprise a share purchase agreement and a shareholders’ agreement relating to Corcel KON-16 Limited, the Corcel Plc group company which will hold an 85% participating interest in Block KON-16. The agreements provide for Sintana’s acquisition of an indirect 5% participating interest in Block KON-16, through the purchase of shares in CorKon, and establish the governance, funding and transfer arrangements applicable to CorKon following Completion.
In addition to the 5% indirect participating interest, the agreements also provide for Sintana to receive a net profit interest of 2.5% of Corcel’s net proceeds from Block KON-16 after first oil until aggregate payments of US$50 million have been made, reducing to 1.5% thereafter.
Completion of the transaction remains conditional upon governmental, regulatory and third-party approvals, including those required in Angola, as well as applicable AIM and TSX Venture Exchange requirements. These are expected to be finalized prior to year-end 2026. Aggregate consideration for the acquisition is US$2.5 million, comprising a US$500,000 initial payment previously paid to Corcel, and a US$2.0 million cash balance payable at completion.
Corcel has also provided an operational update in relation to Block KON-16, the highlights of which are:
- Final PSTM seismic volumes for recently acquired 2D has been received. This dataset materially enhances imaging and structural definition across the block and is being incorporated into the ongoing prospect maturation, well-location selection and partner technical-review processes;
- A geomechanical program has been completed, providing the technical basis for detailed drilling engineering and well design;
- NRG has been appointed for the next phase of engineering and well design for the Block KON-16 exploration drilling campaign; and
- Corcel has confirmed it is targeting drilling of a pre-salt exploration well on Block KON-16 in 2027, subject to final technical selection, approvals, financing, rig availability and partner alignment.
Robert Bose, Chief Executive Officer of Sintana Energy, said: “We are very pleased to reach this milestone with our partners at Corcel. The continuing progress and emergence of the opportunity on KON-16 positions us to realize on this offshore-scaled resource with an onshore cost. We look forward to providing further updates over the coming quarters.“
