Oil and gas company Sintana Energy has entered into agreement to acquire up to 67% shares of Giraffe Energy Investments, the owner of a 33% interest in petroleum exploration license 79 (PEL 79) which governs blocks 2815 and 2915 offshore Namibia.
Sintana entered the agreement, effective April 24, 2024, with Crown Energy, a private Namibian company providing for the acquisition of the issued and outstanding shares of Giraffe.
The National Petroleum Corporation of Namibia (NAMCOR) is currently the operator with a 67% interest in PEL 79.
According to Sintana, the Acquisition provides it with an attractive entry into a high impact license with significant upside. It allows Sintana to further expand its exposure to Namibia’s Orange Basin, emerging as the world’s next hydrocarbon province.
The acquisition is structured as an initial purchase of 49% of the issued and outstanding shares of Giraffe from Crown Energy which, prior to the acquisition was the owner of 100% of the issued and outstanding shares of Giraffe, for cash consideration of $2 million.
Further, Sintana retains an option to increase its ownership up to 67% of Giraffe anytime over the 5 years following closing based on the shares issued and outstanding at the time of the option exercise for an additional cash payment at the time of exercise of $1 million.
Also, through an emerging partnership with Quantum Xploration (QXI) associated with the acquisition, Sintana deepens its technical, operational and in-country capabilities in Namibia which position the company for additional opportunities and growth.
QXI is led by Mark Stearns who was previously Asset General Manager for Galp Energia in Namibia from 2017 to 2023 leading all upstream operations in country including on PEL 83, home to the multiple light-oil discoveries in the Mopane complex announced during first quarter of 2024.
Together, Sintana and QXI will focus on working with NAMCOR to identify and harness the opportunities and value of PEL 79.
“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 realize the significant geologic, commercial, and strategic value of PEL 79,” said Robert Bose, CEO and Board Member of Sintana Energy.
“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,” added Mark Stearnes, CEO of QXI.