Sintana Energy Inc. (TSX-V: SEI): Oil discovery adjacent to two Sintana’s blocks
• The Capricornus 1-X exploration well on PEL 85 (bp/Eni/Rhino) found 38 m of net pay, with the reservoir showing good petrophysical properties and no observed water contact. The well achieved a surface-constrained flow rate in excess of 11,000 bbl/d. The light 37° API oil exhibited limited associated gas with less than 2% CO2 and no hydrogen sulphide.• There are potential readthroughs for Sintana’s assets. Capricornus-1X is located ~40-50 km south of Mopane-3X that encountered light oil and condensate at AVO-10 and light oil at AVO-13 and in a new reservoir. The proportion of gas has been an area of risk for Mopane. The quality of the reservoir on the Shell discoveries 40 km south-south west [of Capricornus] is low. None of these issues appear to apply to Capricornus.
• Sintana holds 16.2% interest in PEL 79. This block is located directly to the east of PEL 85.
• We reaffirm our target price of C$1.80/sh.
Upcoming drilling
Drilling at PEL 90 with Chevron is expected to start in 4Q25, with an unrisked NAV of C$0.81/sh for the asset. A well on PEL 82 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. Galp securing a partner at PEL 83 would provide a clear valuation benchmark for the assets. We currently value Mopane at C$1.22/sh.
Valuation
Our total unrisked NAV for Sintana 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.
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.
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