Sintana Energy Inc (TSX-V/AIM: SEI) has taken a meaningful step forward with the resolution of its long-standing arbitration with ExxonMobil, marking a milestone moment in the company’s growth story. The latest research note from Auctus Advisors LLP highlights how the US$9 million cash settlement not only closes a chapter but also strengthens the company’s financial foundation heading into a pivotal year.
The settlement, tied to the VMM-37 block in Colombia, will see Sintana receive an initial payment of US$3 million within 60 days of execution. The remaining US$6 million is expected upon regulatory approval in Colombia, which Auctus anticipates will be finalised in the fourth quarter of 2026. This financial boost is particularly significant, as it equips Sintana with the liquidity needed to fund its share of drilling costs at PEL‑90 in partnership with Chevron.
Analyst Stephane Foucaud notes, “This settlement meaningfully strengthens Sintana’s balance sheet, providing sufficient liquidity to fund its share of drilling costs for the deep‑water well at PEL‑90 with Chevron near year‑end 2026.”
In the same note, Auctus reaffirms its target price of C$1.55 per share, representing strong upside from the current market price of C$0.44. Even in a downside scenario, the research estimates Sintana’s ReNAV at C$1.40 per share—still roughly three times higher than the current share price.
The research also points to a number of key value drivers in Sintana’s portfolio. These include the farm-out of OFF‑3 in Uruguay, drilling activity at KON‑16 in Angola, and the upcoming well at PEL‑90, where Sintana holds a 7.5% interest. Additionally, Apache’s potential drilling on adjacent Uruguayan blocks in late 2026 could further increase regional momentum.
Financial and Operational Highlights from the Research Note
- Settlement with ExxonMobil: US$9 million total, with US$3m due in Q2 and US$6m anticipated in Q4 2026
- Target Price: C$1.55 per share
- Unrisked NAV: C$9.33/sh
- ReNAV: C$1.52/sh
- Core NAV (based on Mopane): C$0.75/sh
- PEL-87 Licence: Pending 12-month extension request, deemed valid under ongoing review
- Key Catalysts:
- Farm-out of Uruguay’s OFF-3 (ReNAV: C$0.10/sh)
- PEL-90 exploration well (ReNAV: C$0.21/sh)
- KON-16 Angola prospect (ReNAV: C$0.03/sh)
The valuation breakdown presented in the NAV table on page 3 of the report underscores the diversity of Sintana’s upstream assets across Namibia, Angola and Uruguay, with significant upside potential across each geography.
Final Thoughts:
With its arbitration resolved, liquidity secured, and multiple high-impact catalysts on the horizon, Sintana Energy finds itself well-positioned for a transformative 2026. The strong valuation case laid out by Auctus Advisors provides a compelling narrative for investors seeking exposure to frontier exploration with a firm financial footing.
