Sintana Energy Inc. (TSX-V: SEI): QatarEnergy enters Uruguay. Drilling momentum builds-up across Sintana’s portfolio
• Galp’s latest 3C contingent resource estimate for Mopane equates to ~67 mmboe net to Sintana’s 4.9% indirect carried interest.• TotalEnergies plans a three‑well appraisal programme on the Mopane licence (PEL 83) commencing in 2H26 to further grow the resource base. FID is targeted for 2028, with first oil expected in 2032. TotalEnergies has also highlighted a potential inboard extension of Mopane and identified two additional large prospects, Quiver and Sobreiro.
• In Uruguay, QatarEnergy has acquired a 30% WI in offshore blocks AREA OFF‑2 and AREA OFF‑7 from Shell, while Chevron has taken a 30% WI in AREA OFF‑7. AREA OFF‑2 lies directly adjacent to Sintana’s AREA OFF‑3, and AREA OFF‑7 sits immediately outboard, underscoring the increasing industry interest in the basin.
• Pending greater clarity on capex and plateau production, we reiterate our C$1.55/sh target price.
• Over the next 18 months, five to six high‑impact exploration wells could be drilled across Sintana’s portfolio. In addition, Apache is expected to spud the first exploration well on AREA OFF‑6 around YE26. A successful result would inevitably attract significant investor and industry attention.
Valuation
Our Core NAV for Sintana, based solely on the discovered Mopane resources, is C$0.75 per share. Key upcoming catalysts include the farm‑out of OFF‑3 in Uruguay (ReNAV: C$0.10/sh; Unrisked NAV: C$2.02/sh), the drilling of three exploration/appraisal wells on PEL 83 (no value assigned yet), a new exploration well on PEL 90 (ReNAV: C$0.21/sh; Unrisked NAV: C$0.67/sh), a well on PEL 82 (ReNAV: C$0.09/sh; Unrisked NAV: C$0.25/sh), and the planned well on KON‑16 in Angola (ReNAV/Unrisked: C$0.03/C$0.14 per share). We also expect the conclusion of Pancontinental’s farm‑out process on PEL 87 (ReNAV: C$0.12/sh; Unrisked NAV: C$0.99/sh). In aggregate, our unrisked NAV stands at C$9.33 per share, with a ReNAV of C$1.52 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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