Sintana Energy Inc. (TSX-V: SEI): Resolution of Colombia arbitration with ExxonMobil bolsters the balance sheet
• Sintana has reached a settlement with ExxonMobil regarding the arbitration related to the VMM‑37 block in Colombia. Under the agreement, Sintana will receive a total of US$9 million in cash, including an initial US$3 mm payment due within 60 days of execution (we assume receipt in April).• The remaining US$6 mm payment is contingent on regulatory approval in Colombia. For modelling purposes, we assume this will be received in 4Q26.
• This settlement meaningfully strengthens Sintana’s balance sheet, providing sufficient liquidity to fund its share of drilling costs for the deep‑water well at PEL‑90 with Chevron near year‑end 2026.
• We had already assigned a risked value of approximately US$13 mm to VMM‑37 in our upside case, and we reiterate our target price of C$1.55 per share.
PEL-87
The first renewal exploration period for PEL‑87 (Sintana WI: 7.5%) expired on 22 January 2026. Pancontinental submitted a request in November 2025 for a 12‑month extension but has not yet received formal confirmation from the authorities. Under the Petroleum Act, however, an exploration licence remains valid while a renewal application is under review. Pancontinental is currently farming out an interest in the block, making the extension an important milestone. Even under a worst‑case scenario in which the extension is not granted, our ReNAV for Sintana would still be C$1.40 per share, equivalent to roughly 3× the current share price.
Valuation
Our Core NAV for Sintana, based solely on Mopane, stands at C$0.75 per share. Key upcoming catalysts include the farm‑out of OFF‑3 in Uruguay (ReNAV: C$0.10 per share; Unrisked NAV: C$2.02 per share), the drilling of a new exploration well at PEL‑90 (ReNAV: C$0.21 per share; Unrisked NAV: C$0.67 per share), and the planned well at KON‑16 in Angola (ReNAV/Unrisked: C$0.03/C$0.14 per share). Apache may also commence drilling on adjacent Uruguayan blocks in 4Q26, adding further regional momentum. Our overall unrisked NAV is C$9.33/sh, and our ReNAV is C$1.52/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.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.