Staff Reporter
SINTANA Energy has entered into a definitive agreement to acquire a 44% interest in Namibian company Maravilla Oil and Gas, giving it an indirect 35% interest in Petroleum Exploration Licence 37 (PEL 37) in the offshore Walvis Basin.
Maravilla holds an 80% controlling stake in Paragon Oil and Gas, which owns a 100% operated interest in PEL 37. The licence covers about 17,295 square kilometres in water depths ranging from 100 to 1,500 metres.
Sintana said the investment will expand its exposure to Namibia’s offshore oil and gas sector and provide access to prospects on PEL 37, which has extensive 2D and 3D seismic data and a history of exploration drilling.
The company said PEL 37 is also strategically positioned near PEL 82, operated by a Chevron affiliate, where future exploration activities could provide information relevant to prospects in PEL 37.
The acquisition has a total consideration of US$6.5 million, comprising cash, pre-funded technical and commercial expenses and newly issued Sintana shares.
The transaction remains subject to regulatory approvals and other customary closing conditions.
As part of the investment, Maravilla will also make a N$1 million donation to communities in the Erongo Region, to be distributed in coordination with the Office of the Governor and the Knowledge Foundation.
Photo: Namibia Oil and Gas
