Sintana Energy Inc. (TSX-V: SEI): Multiple offers received by Galp for Mopane
• Galp has received multiple non-binding offers from reputable parties for a stake in PEL 83, home to the Mopane discovery.• The company is actively engaging with several counterparties, aiming to announce a farm-in partner by YE25.
• These counterparties bring strong operatorship credentials and have prioritized Namibia within their corporate strategies. They are committed to advancing and fully exploring the licence at a value-enhancing pace for Galp.
• Any announced transaction would provide meaningful readthrough for Sintana’s 4.9% carried interest in PEL 83, which we currently value at C$1.19 per share.
• Drilling at PEL 90 in partnership with Chevron is expected to commence in late 2025/early 2026, carrying an unrisked NAV of C$0.79 per share.
• Additionally, a carried well at PEL 82 in the Walvis Basin is planned for early 2026, also operated by Chevron. The unrisked NAV for this asset is estimated at C$0.24 per share.
• We reaffirm our target price of C$1.80/sh.
PEL 79 Licence extension and progress at PEL 87
• The PEL 79 licence has been extended by a year to July 2026. Sintana owns ~16.5% interest in PEL 79 located adjacent to PEL 85 where Rhino Resources and Azule Energy (BP and Eni) have a made a light oil discovery at Capricornus-1X and where a third well is expected to be spud in 3Q25. PEL 79 is also adjacent to PEL 3 where BW Energy is expected to start an exploration and appraisal campaign in 2H25. Our unrisked NAV for PEL 79 is C$0.24 per share.
• Pancontinental, the operator of PEL 87, reported that the quantitative interpretation of the 3D seismic data provides support for a high net to gross reservoir system, with hydrocarbon fluid effects in evidence coincident with identified AVO anomalies. Basin modelling also confirms that the Kudu source rock is ubiquitous across PEL 87, with a mature kitchen generating low GOR oil directly beneath and to the northeast of the Saturn Complex. Modelling indicates generative capacity exceeding 20 bnbbl feeding directly into the Saturn Complex. Our unrisked NAV for PEL 87 is C$1.77 per share.
Valuation
Our ReNAV for Sintana is C$1.81 per share. Our overall unrisked NAV for the company, including both Namibia and Angola, is C$4.47 per share.
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.
Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
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