It’s been an exciting few weeks for Sintana Energy Inc (TSX-V:SEI, OTCQB:SEUSF).
The Namibia-focused oil and natural gas explorer announced the acquisition of Giraffe Energy, its part-owned Mopane discovery was confirmed to be a “world-class” asset following testing by project operator Galp, and the expansion of its partnership with Chevron offshore Namibia was unveiled.
CEO Robert Bose joined Proactive to talk through these milestones, which have been welcomed by investors who sent the company’s shares 85% higher in the past month.
Proactive: You have a pretty significant exploration update on Mopane, so let’s start there. Very positive news, Robert.
Robert Bose: Absolutely. It’s been something we have been anticipating for a while. This exploration campaign was not only fantastic to culminate that effort successfully to announce results that were literally a best-case scenario. To recap, the campaign multiple had multiple oil discoveries in multiple horizons. As well, a drill stamp test was done on one of the wells and it flowed at the infrastructure-constrained maximum limit of 14,000 barrels a day.
The overall expected kind of volume of the discoveries is in excess of 10 billion barrels which is just an absolutely fantastic result for Namibia, for the basin and certainly for Sintana. This would make Mopane one of the largest oil discoveries globally in decades, on par with if not larger than some of the significant finds in Guyana and in other places in West Africa. And that’s just the beginning of what’s to come. That was a great way to start the quarter.
That really puts a light onto the area itself when you get these types of results.
It has brought a different level of visibility across the board. It’s a much wider remit of investors, a lot more institutional eyeballs on the story. We are seeing very significant increases in trading volume in addition to a fantastic response in the stock. Our story has really involved to present a much different kind of investment opportunity.
You’re seeing another company expanding [in Namibia] and that’s Chevron. They have a subsidiary that works out of the area that you’re in. This is a pretty significant company comping in and putting that next to your name really continues to shine that light on your company.
As your viewers may recall, we have had a partnership with Chevron in Namibia for some time now. They are partners with us in a license in the Orange Basin called PEL 90, immediately east of 83 which is home to the discoveries at Mopane. We have a very significant and active in-country relationship with them. To announce we had expanded that relationship to bring them into another license, called 82 located in the Walvis Basin in the north of the Namibian offshore is just emblematic of the quality of the relationship we have with them. It’s a huge result, not only for the basin but for us as well.
Another announcement from the company is about an acquisition called Giraffe Energy. Tell me a bit about this acquisition.
We were absolutely thrilled while I was in Namibia last week to announce we have entered into a transaction to ultimately take control of an entity called Giraffe Energy. Giraffe is partnered with the Namibian National Oil Company in a license called PE 79 in the Orange Basin. We are absolutely thrilled to expand our exposure to the Orange Basin through this acquisition. It gives us the opportunity to take a much more active role in it, being able to unleash the geologic and commercial opportunity at PEL 79. In conjunction with the acquisition, we are partnering with a best-in-class technical team that’s got a long track record in-country, including with respect to PEL 83. We’ll be able to bring to the table not only our resources, but novel and unique technical resources to move this forward. It’s definitely been busy and exciting with everything we have going on. We are really looking for to the next few quarters.
Quotes have been edited for clarity and style
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