Sintana considers broadening exploration position in Namibia’s offshore Walvis Basin
Sintana Energy has a letter of intent (LoI) concerning a potential indirect interest in the PEL 37 exploration license in the Walvis Basin offshore Namibia.
The location is north of PEL 82, operated by an affiliate of Chevron. Sintana has an indirect participation via its affiliate Custos Energy.
Chevron is working on plans for drilling an exploration well on the license over the coming quarter, Sintana added.
PEL 37, operated by Namibian company Paragon Oil and Gas with a 100% interest, covers a 17,295-sq-km area, in water depths of 100 m to 1,500 m.
Various prospects have been identified in water depths between 300 m and 600 m, with multiple large fans said to be overlying a proven, mature, oil-prone Aptian source rock.
Under the LoI, Sintana has a period of exclusivity, initially through the end of April, to conduct technical, commercial and legal due diligence on both Paragon and PEL 37, and to negotiate terms for a capital investment.
This would lead to the company becoming a shareholder of Paragon with an indirect interest in PEL 37.