Sintana Energy flags major resource upgrade at Namibia oil discovery

Sintana Energy Inc (TSX-V:SEI, OTCQB:SEUSF, AIM:SEI) has reported a 57% increase in contingent resources at the Mopane oil complex off the coast of Namibia, lifting the explorer's net interest in the project to around 67 million barrels of oil equivalent.

The upgrade follows new drilling and appraisal work by Galp Energia, the operator of the PEL 83 licence, which raised the gross 3C contingent resource from 875 million barrels to 1.38 billion barrels.

TotalEnergies is in the process of taking over as operator and plans to drill three further wells from the second half of this year, with a final investment decision targeted for 2028 and first oil in 2032.

Sintana holds a 4.9% indirect carried interest in PEL 83, meaning its costs in the upcoming drilling programme are covered by TotalEnergies and Galp.

The company also received a $3 million initial payment from ExxonMobil as part of a $9 million settlement relating to its exit from a Colombian exploration block, with a further $6 million contingent on government approval and expected before the end of 2026.

In Uruguay, seismic surveying is underway on Sintana's AREA OFF-1 block, with 60%-owning operator Chevron having completed 22% of planned first-season acquisition, with key prospect data expected by the end of 2026.

The wider basin is attracting significant industry attention, with QatarEnergy and Chevron farming into multiple offshore blocks directly adjacent to Sintana's acreage, adding to a roster of majors that now includes Shell, ENI and APA.

Sintana noted that it is now the only junior operator with exposure to what is becoming one of the Atlantic margin's more closely watched frontier plays.