In its year-end review and 2023 outlook, Canadian oil and gas exploration company, Sintana Energy, said the Namibian government has approved extension to its Petroleum Exploration License 87 (PEL 87).
“2022 was a seminal year in Sintana’s history underpinned most notably by our entry into Namibia in March,” said Robert Bose, President and Director of Sintana Energy.
“The significant progress in 2022 on both our licences and on the blocks around us, particularly in the offshore Namibian basins, continue to demonstrate the timeliness of our entry. Multiple catalysts in the near-term position of the Company and its shareholders for success in 2023,” he added.
Last month, mines and energy minister Tom Alweendo granted a second one-year extension to the current, first four-year Initial Exploration Period associated with PEL 87 located in Orange Basin.
“The revised Initial Exploration Period will now expire in January 2024,” the company said in a press release.
“Three additional periods totaling six years are available after the current period, with further possible extensions thereafter. The extension will be used to conduct, among other things, an extensive 3D seismic survey,” Sintana stated.
An obligatory relinquishment of the licence area of PEL 87 was waived by the minister Alweendo, preserving an area of 10,970 square kilometres.
Sintana maintains a 7.4% indirect, carried interest in PEL 87. The other working interest owners include National Petroleum Corporation of Namibia (Namcor) owner of 10% and Pancontinental Orange (Pty) Ltd. (‘Pancontinental’) the operator and owner of a 75% interest.
PEL 87 includes the 2,400 sq km Saturn turbidite complex that has been mapped by Pancontinental. This complex has similar geologic characteristics and is on-trend with TotalEnergies’ Venus oil discovery, made in February 2022.
In a media release, Sintana Energy says 2022 included numerous milestones and events associated with the company’s entry into Namibia. These included the amending of the definitive agreement to acquire a 49% interest in InterOil (Pty) Ltd., the owner of indirect interests in 4 offshore and 1 onshore exploration licences in Namibia and launching a public offering of units to support completion of the acquisition.
Sintana Energy expects continued activity in 2023 on and around its offshore blocks including:
Completion of a 3D seismic survey and the potential drilling of an exploration well by Chevron on PEL 90.
Potential farm out announcements on PELs 83 and 87.
Additional exploration and appraisal activity by both Shell and TotalEnergies in the Orange Basin on their respective blocks which immediately offset blocks in which Sintana has indirect interests.
Up to five wells were drilled by Maurel & Prom on PEL 44 in the Walvis Basin, which is located directly below PEL 82 where Sintana has an indirect 4.9% interest.
“The numerous catalysts expected in 2023 will provide many opportunities to assess and substantiate the multi-billion barrel potential of the Namibian offshore as it emerges as the next global hydrocarbon province,” Bose said.
“We look forward to significant progress in the year ahead,” he added.