Sintana Energy Secures Exclusive Namibia Offshore Deal, Expands Global Reach

Sintana Energy Inc. Secures Exclusivity Agreement for Namibia Offshore Expansion

Sintana Energy Inc. (TSX:SEI) announced on January 21, 2026 that it has entered into a letter of intent (LOI) granting the company an exclusivity period for an investment that would give it an indirect interest in Petroleum Exploration Licence 37 (PEL 37) in the Walvis Basin, offshore Namibia. The LOI, sourced from Baird Maritime, provides a window of exclusivity extending through April 30, 2026.

Terms of the Agreement

Exclusivity Deposit: Sintana Energy will pay a deposit of $1 million to secure the exclusivity period.
Non‑refundable Portion: One‑third of the deposit ($333,333) will be non‑refundable if the company ultimately decides not to proceed with the transaction.
Due Diligence: The exclusivity period allows Sintana Energy to conduct technical, commercial, and legal due diligence on Paragon Oil and Gas Company (the current holder and operator of PEL 37) and on the licence area.
Capital Contribution: Sintana Energy may contribute capital to satisfy work obligations, which would result in the company becoming a shareholder of Paragon Oil and Gas Company.

The licence area covers 17,295 km² and sits in water depths ranging from 100 to 1,500 m. Prospects identified at depths between 300 and 600 m directly overlie oil‑prone Aptian source rock, indicating potential for production.

Strategic Context

Adjacent Activity: Chevron’s affiliate operates the neighbouring PEL 82, where exploration drilling is anticipated in the coming quarters.
Existing Interest: Custos Energy, an affiliate of Sintana Energy, holds a working interest in PEL 82, providing a foothold in the region.
Portfolio Expansion: Chief Executive Officer Robert Bose emphasized that the LOI offers a low‑cost avenue to secure exclusivity over a high‑impact block at the heart of the Walvis Basin. He noted that the potential investment would provide “additional optionality associated with upcoming activity in our existing portfolio.”

Market Implications

Sintana Energy’s move into Namibia’s offshore sector represents a significant expansion of its geographic footprint beyond its current operations in Canada and North and South America. The company’s market capitalization of CAD 233.58 million and a closing stock price of CAD 0.475 (as of January 20, 2026) reflect a valuation that is currently below earnings, with a Price‑to‑Earnings ratio of ‑12.17. The exclusivity agreement could enhance Sintana’s asset base and potential revenue streams, potentially influencing future trading activity on the TSX Venture Exchange.