…company may fork out N$57 million for 67% stake in Giraffe Energy
Sintana Energy Inc has snapped up a stake in some the of last remaining acreage in Namibia’s Orange basin hotspot, acquiring a material interest in the PEL 79 licence block located to the east of the ‘world-class’ Mopane discovery.
The Canadian exploration company holds around 5% of Galp-operated Mopane, which was confirmed as a significant commercial discovery by the Portuguese firm earlier this week.
Now, today, Sintana has executed an agreement with Crown Energy, a private Namibian company, to acquire up to 67% of Giraffe Energy Investments (Pty) Ltd, a vehicle which in turn owns a 33% stake in PEL 79 alongside state-backed oil company Namcor.
Initially, Sintana is paying N$38 million to acquire 49% of Giraffe and can increase the stake to 67% over the next five years for a further N$19 million payment.
The Acquisition remains subject to the satisfaction of various closing conditions and the receipt of all applicable approvals, including, without limitation, the approval of the TSX Venture Exchange. Further details regarding approval of the Acquisition and other corporate matters will be announced by the Company in due course.
The deal is described by Sintana as “an attractive entry into a high-impact license with significant upside”.
“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,” Sintana chief executive Robert Bose said in a statement.
Mark Stearnes, chief executive of Quantum Xploration Inc (QXI), meanwhile, commented: “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.”
Stearnes was Galp’s asset general manager in Namibia from 2017 and 2023, a role which saw him lead upstream operations in country including on PEL 83, which hosts Mopane.
Through an emerging partnership with QXI, Sintana expects to deepen its technical, operational and in-country capabilities in Namibia.
The partnership positions the company for additional opportunities and growth, the company highlighted.
In conjunction with the Acquisition, an 8% interest in Giraffe’s common equity will be contributed to a community trust. This contribution, initiated and supported by the Knowledge Katti Foundation, will establish the first vehicle of its kind in Namibia providing a direct mechanism to bring the benefits of the oil and gas industry to local communities.
“We are grateful for the efforts of the Giraffe owners and to the Knowledge Katti Foundation for this groundbreaking initiative. It underscores the importance of ensuring the benefits and opportunities of this emerging industry are shared broadly shared with the local communities,” said the Honourable Neville Andre, Governor of Erongo.
“The Knowledge Katti Foundation is proud to play an instrumental role in this initiative ensuring that local communities, initially in Erongo and then expanding to include Karras, are participants in the benefits and outcomes of the oil and gas industry as Namibia emerges as one of the world’s great hydrocarbon provinces,” said Knowledge Katti, Founder of the Knowledge Katti Foundation.