Sintana Energy is increasing its planned exposure to Namibia’s Walvis Basin, securing an indirect 35% interest in PEL 37 under a definitive US$6.5 million transaction, up from the approximately 30% stake initially contemplated when negotiations began earlier this year.
The company has agreed to acquire a 44% interest in Namibian-owned Maravilla Oil and Gas, which controls 80% of Paragon Oil and Gas, which in turn holds a 100% operated interest in PEL 37.
The transaction marks a step up from Sintana’s January 2026 letter of intent, which contemplated an indirect interest of approximately 30% in PEL 37. Earlier company disclosures valued the proposed transaction at about US$6 million.
Under the definitive agreement, Sintana’s 44% interest in Maravilla translates into an indirect 35% interest in the offshore licence.
PEL 37 covers 17,295 square kilometres in the Walvis Basin and sits immediately north of PEL 82, where Chevron is the operator and Sintana already has indirect exposure through its 49% shareholding in Custos Energy.
The licence covers water depths ranging from 100 to 1,500 metres, while identified prospects lie in water depths of about 300 to 600 metres. Sintana says the acreage contains multiple large fan prospects directly overlying a mature, oil-prone Aptian source rock.
The block also has an established technical database comprising 2,813 square kilometres of 3D seismic and about 1,000 line kilometres of 2D seismic, alongside historical exploration drilling.
Sintana’s increased exposure comes ahead of potentially significant exploration activity in the Walvis Basin.
Chevron has indicated an expectation of exploration activity on neighbouring PEL 82, including a potential inaugural exploration well in 2027, while BP has entered acreage adjacent to PEL 37 and PEL 82. Sintana has previously described BP’s entry as further validation of the broader Walvis Basin’s prospectivity.
Sintana expects future drilling on PEL 82 to have important read-through implications for PEL 37, potentially providing new geological information on the petroleum system and prospects across the area.
The company is positioning the Walvis Basin as a potential next phase of Namibia’s offshore exploration story following major discoveries in the Orange Basin.
“Expanding our platform though an investment in Maravilla is the continuing demonstration of our ability to secure cost-effective exposure to high-impact exploration licenses in emerging basins,” Sintana CEO Robert Bose said.
“The expansion of our Walvis Basin footprint positions us to participate in the next chapter of Namibia’s offshore success. We look forward to providing updates on progress in the coming quarters.”
Under the transaction, Sintana will pay US$6.5 million, comprising a US$500,000 deposit already paid in January, US$3 million in cash at signing and closing, US$500,000 in pre-funded expenses for ongoing technical and commercial work on PEL 37, and US$2.5 million in newly issued Sintana common shares priced at US$0.30 each.
The acquisition remains subject to regulatory approvals and other customary closing conditions.
The transaction also expands Sintana’s relationship with Maravilla beyond PEL 37, with the companies planning to jointly identify and evaluate additional capital-efficient, high-impact exploration opportunities across West Africa.
For Sintana, the deal deepens its exposure to Namibia’s offshore petroleum sector while increasing its position in the Walvis Basin ahead of potentially significant exploration activity.
