Sintana Energy has announce that it has entered into a Letter of Intent providing for a period of exclusivity in relation to an investment providing for an indirect interest in PEL 37 in the\u00a0Walvis Basin, offshore\u00a0Namibia.<\/p>\n\n\n\n
PEL 37<\/strong><\/p>\n\n\n\n PEL 37 is located in the heart of the\u00a0Walvis Basin, offshore\u00a0Namibia, immediately to the north of PEL 82 currently operated by an affiliate of Chevron Corporation and where\u00a0Custos Energy (Pty) Ltd, an indirect affiliate of Sintana, is a working interest owner.\u00a0Chevron\u00a0has previously announced its intention to accelerate exploration activities on PEL 82 including drilling an exploration well. Custos is carried for the initial operations.\u00a0<\/p>\n\n\n\n The LOI provides Sintana with a period of exclusivity, initially through to 30th<\/sup> April 2026, to undertake technical, commercial and legal due diligence on Paragon and PEL 37, and to negotiate appropriate terms and documentation for contribution of capital by Sintana to enable work obligations to be satisfied, and which would result in Sintana becoming a shareholder of Paragon and thus an indirect holder of an interest in PEL 37.<\/p>\n\n\n\n Sintana will pay a deposit of $1 million to secure the exclusivity, of which 1\/3 is non-refundable in the event that Sintana, for any reason, elects not to proceed.<\/p>\n\n\n\n
PEL 37 is currently held 100% and operated by\u00a0Paragon Oil and Gas Pty Ltd, a local Namibian company. PEL 37 covers an area of 17,295km\u00b2, in relatively shallow water (100 – 1500m), with identified prospects at water depths between 300 and 600m, and with multiple large fans directly overlying a proven, mature oil-prone Aptian source rock.<\/p>\n\n\n\n