Star Metro - PEL 90 Participating Interest Exchange with Chevron

Specifically, the agreement provides for the transfer of all of Trago's participating interest in PEL 90 to Chevron, in exchange for $11MM in cash at completion and further contingent consideration payable on the achievement of appraisal and production milestones, including the revenues associated with commercial production currently estimated to be between 1.5 and 2.5 MM barrels of oil (dependent upon commodity price assumptions.)

The transaction provides Trago, through the contingent consideration with ongoing exposure to the significant prospectivity and upcoming activities on PEL 90, including the Nabba-1X exploration well, while eliminating Trago's funding and capital risk.

Completion of the transaction remains subject to governmental, regulatory and third-party approvals. Following completion, Trago will no longer hold a participating interest in PEL 90 and will have no further obligation to fund its share of costs on the licence, including the Nabba-1X exploration well. Any upfront consideration, net of all costs including fees and taxes, shall be used by Sintana to continue to support its corporate activities.

Upon completion of the transaction, Custos will contribute N$10 million to the University of Namibia ("UNAM") Foundation towards the construction of UNAM's new campus in Walvis Bay, as recently announced.

Robert Bose, Chief Executive Officer of Sintana Energy, said:

"This transaction is a further demonstration of our ability to reduce the capital intensity and downside risk of our portfolio while preserving exposure to the successful outcomes associated with high impact exploration evolving into production.

We look forward to the highly anticipated, upcoming Nabba 1-X well on PEL 90. Retaining capital free exposure to the significant prospectivity and opportunity associated with another Orange Basin license bracketed by the successful discoveries at Mopane and Venus adds material, potential upside to our world-class Atlantic margin portfolio."

PEL 90 is located offshore Namibia in the Orange Basin and covers an area of approximately 5,433 km². The licence is operated by Chevron. Adjusted for recently announced, but as yet uncompleted, farm-out to Equinor and prior to adjustment for Trago's interest exchange, the PEL 90 participants include Chevron (35.1% interest) Qatar Energy (27.5%), Equinor (17.4%), the National Petroleum Corporation of Namibia (10%) and Trago (10%). No reserves or resources have been attributed to PEL 90. As an exploration licence, PEL 90 has not generated any revenue.

The person responsible for arranging the release of this announcement on behalf of the Company is Robert Bose, Chief Executive Officer.

For further information, please contact:

About Sintana

Sintana, the Canadian parent company of a group of companies, is focused on the acquisition, exploration, potential development, and ultimately the monetisation of a diverse portfolio of interests in high-impact assets with significant hydrocarbon resource potential in emerging "frontier" geographies. Specifically, this includes interests in eight licences in two countries, Namibia and Uruguay, as well as pending indirect interests in additional licences in Namibia and Angola (and legacy assets in Colombia and The Bahamas), providing exposure to a range of geologic plays, basins, operators, regulators, jurisdictions and geopolitical regimes.

https://www.sintanaenergy.com

Forward-looking statements

Certain statements in this announcement are, or may be deemed to be, forward looking statements, including statements with respect to the anticipated completion of the Acquisition on terms currently proposed or at all, the receipt of all associated regulatory approvals and satisfaction of all closing conditions, and the prospective nature of PEL 37. Forward looking statements are identified by their use of terms and phrases such as "believe'', "could'', "should" "envisage'', "estimate'', "intend'', "may'', "plan'', "will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Company's current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Company's current beliefs and assumptions and are based on information currently available to the Company. Several factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions, competition, failure to obtain regulatory approvals or satisfy conditions precedent to the completion of the Acquisition, changes in project parameters as plans continue to be refined, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Company believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements. The Company disclaims any obligation to update forward-looking statements contained herein other than as required by applicable law.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE: Sintana Energy Inc.

View the original press release on ACCESS Newswire

W.Fortin--SMC