Sintana Energy Inc. and its partners have agreed to sell their 10% interest in Namibia’s PEL 90 licence to Chevron for US$11m, while retaining exposure to potential contingent payments.
The transaction comes ahead of an expected increase in drilling activity across Namibia’s Orange Basin, with two to three rigs anticipated to begin operations in the coming weeks.
PEL 90 is adjacent to Stamper Oil and Gas Corp.’s PEL 107 licence. Drilling of the Nabba-1X well on PEL 90 is expected to begin within weeks, marking a key near-term milestone for exploration in the area.
For Sintana, the sale provides an immediate US$11m payment while preserving the potential for further proceeds through contingent payments. Upcoming drilling activity could also provide additional insight into the Orange Basin’s exploration potential.
Sintana Energy Inc (TSX-V:SEI, OTCQX:SEUSF) is a public oil and natural gas exploration company listed on the Toronto Venture Exchange.
