Canada-headquartered oil and natural gas exploration player Sintana Energy has wrapped up its acquisition of a stake in Giraffe Energy Investments, which enabled it to get a hold of a new license in the Orange Basin off the coast of Namibia.
Thanks to a deal with Crown Energy , a Namibian company, Sintana Energy has acquired an initial 49% interest in Giraffe Energy Investments, which owns a 33% stake in the petroleum exploration license 79 ( PEL 79 ), governing blocks 2815 and 2915 located inboard of blocks operated by BW Energy , Rhino Resources , and Shell in Namibia’s Orange Basin.
Currently, the National Petroleum Corporation of Namibia (NAMCOR) is the operator of the license with a 67% interest. According to Sintana, the existing 2D and 3D coverage support a material prospect inventory, with recent discoveries, including at Galp’s Mopane , providing opportunities to deploy new approaches and new insights on potential.
The Canadian firm paid a cash consideration of $2 million for its initial 49% interest in Giraffe and retains an option to increase its ownership up to 67% anytime over the five years, following closing based on the shares issued and outstanding at the time of the option exercise for an additional cash payment of $1 million.
Many other players are also joining Namibia’s prolific Orange Basin, including Azule Energy which recently found its way into the basin, thanks to a farm-in agreement for a 42.5% interest in Block 2914A in PEL 85 .
On the other hand, Chevron ensured its entrance into PEL 82 with an agreement to assume an 80% working interest and operatorship.