Offshore Technology

Sintana to acquire 67% stake in Giraffe Energy to expand in Namibia’s Orange Basin

Giraffe Energy holds a 33% interest in Petroleum Exploration License 79 (PEL 79), adjacent to areas operated by industry players such as BW Energy, Rhino Resources and Shell.

Sintana Energy has agreed to acquire up to a 67% stake in Giraffe Energy Investments, marking a strategic expansion into Namibia's Orange Basin.

Giraffe Energy holds a 33% interest in PEL 79, which covers blocks 2815 and 2915, adjacent to areas operated by industry players such as BW Energy, Rhino Resources and Shell.

The National Petroleum Corporation of Namibia (NAMCOR) currently operates PEL 79 with a 67% interest.

Sintana, a Canadian exploration company, views the acquisition as an opportunity to enter a high-impact licence with significant upside potential, furthering its exposure to the emerging hydrocarbon province in the Orange Basin.

BW Energy has recently acquired 4,600km² of new 3D seismic data over PEL 3, which lies directly west of PEL 79, and is advancing an oil-focused exploration campaign.

Adjacent to PEL 79, Rhino Resources is preparing for a two-well campaign in PEL 85, with plans to drill up to ten wells.

Sintana highlighted the substantial existing 2D and 3D seismic data that supports a significant prospect inventory in the area.

It will collaborate with NAMCOR and Quantum Xploration (QXI) to assess and capitalise on PEL 79's potential.

Recent discoveries such as the Mopane field underscore the region's potential and the opportunity for innovative exploration strategies, the company said.

The acquisition deal involves an initial purchase of a 49% share in Giraffe Energy from Crown Energy for a cash consideration of $2m (£1.6m), with the option for Sintana to increase its stake to 67% within five years for an additional $1m (C$1.37m).

Sintana Energy CEO and board member Robert Bose said: “We are pleased to announce the potential expansion of our Orange Basin platform through the acquisition of a significant stake in Giraffe Energy. Together with our partners at QXI and Giraffe, we look forward to working with NAMCOR to fully realise the significant geologic, commercial and strategic value of PEL 79.”

The completion of the acquisition is contingent upon various closing conditions and requisite approvals.

Sintana also has an indirect interest in the Galp-operated Mopane field through its stake in Custos Energy.

Galp recently revealed that the Mopane field could contain more than ten billion barrels of oil, highlighting the significant hydrocarbon potential of Namibia's offshore resources.