Sintana Energy Inc. (TSX-V: SEI): Galp reports ~875 mmboe 3C contingent resources at PEL 83
• Galp’s independent auditor estimated approximately 700 mmboe of 3C contingent resources net to Galp for Namibia as of the end of November 2024, translating to ~875 mmboe gross 3C contingent resources or 43 mmboe net to Sintana• The resources estimate is based on AVO-1, AVO-2 and AVO-3 and does not include the impact of the results of the Mopane-2A and Mopane-3X wells. Mopane-2A confirmed the lateral extent of AVO-3 and encountered a hydrocarbon column of light oil at AVO-4. Mopane-3X encountered columns of light oil and gas condensates in two new intervals (AVO-10 and AVO-13). This suggests that the contingent resources reported by Galp probably underestimates the volumes of hydrocarbons encountered so far.
• Even assuming only US$3-4/boe would value Sintana’s share of Mopane’s 3C resources at the end of November at ~C$0.45-C$0.60 per share. This excludes the resources associated with AVO-4, AVO-10 and AVO-13. Note that Galp funds Sintana’s share of capex to first oil, which has positive implications for Sintana’s valuation. We reaffirm our target price of C$1.80/sh. The current share price has returned to levels not seen since before the initial exploration success at Mopane.
Upcoming drilling
Chevron is anticipated to resume drilling at PEL 90 in 4Q25, with an unrisked NAV of C$0.81/sh for the asset. A well on PEL 82 (Sintana WI: 4.9%) in the Walvis Basin is anticipated in early 2026, where Sintana is carried by Chevron. The unrisked NAV for PEL 82 stands at C$0.24/sh. For PEL 87, which is currently undergoing a farm-in process, the unrisked NAV is C$1.81/sh (C$0.18/sh ReNAV). Galp’s farm-in process for Mopane is ongoing, and securing a partner would provide a clear valuation benchmark for the assets. We currently value Mopane at C$1.22/sh.
Valuation
We continue to value Sintana’s interest in Mopane based on the most recent price paid by Africa Oil for shares in Impact Oil & Gas. Our total unrisked NAV is ~C$4.39/sh.
Sintana Energy is a development stage company engaged in oil and gas exploration and development activities in the United States.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
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