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PEL 90 Participating Interest Exchange with Chevron

Completion would end Trago's licence funding obligations while retaining contingent exposure to appraisal and production milestones.

(Neutral)

Sentiment and the balance of points

Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.

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Sintana Energy (SEUSF) announced an agreement for indirectly held Trago Energy to transfer its entire PEL 90 interest to Chevron.

Sintana holds a 49% indirect interest in Trago, which owns 10% of the offshore Namibia exploration licence. The agreement with Chevron affiliate Harmattan Energy provides Trago $11MM cash at completion plus contingent consideration tied to appraisal and production milestones. This includes revenues associated with commercial production currently estimated at 1.5–2.5 MM barrels of oil, dependent on commodity price assumptions.

Completion requires governmental, regulatory and third-party approvals. Trago would relinquish its interest and cease funding licence costs, including the upcoming Nabba-1X well. Upfront consideration, net of costs including fees and taxes, will support Sintana's corporate activities. PEL 90 has no attributed reserves or resources and has generated no revenue.

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3 points · 0 major

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

0 major · 5 points

Hollow bars mark forward-looking points. How the balance works

Positive

  • Moderate point. Forward-looking: it has not happened yet and may not happen.Trago's agreed transfer of its 10% PEL 90 interest provides $11MM cash at completion. 8.1% of market cap
  • Minor point. Forward-looking: it has not happened yet and may not happen.Contingent consideration retains exposure to appraisal and production milestones, including price-dependent revenues associated with estimated 1.5–2.5 MM barrels.
  • Minor point. Forward-looking: it has not happened yet and may not happen.Completion would eliminate Trago's licence funding obligations, including costs of the upcoming Nabba-1X exploration well.

Negative

  • Moderate point. Forward-looking: it has not happened yet and may not happen.Trago would relinquish its entire 10% participating interest in PEL 90 upon completion.
  • Minor pointCompletion remains subject to governmental, regulatory and third-party approvals.
  • Minor point. Forward-looking: it has not happened yet and may not happen.Costs, including fees and taxes, reduce upfront consideration available for Sintana's corporate activities.
  • Minor pointNo reserves or resources have been attributed to PEL 90.
  • Minor pointPEL 90 has generated no revenue as an exploration licence.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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TORONTO, ON AND LONDON, UK / ACCESS Newswire / October 1, 2026 / Sintana Energy Inc. (TSX-V:SEI)(AIM:SEI)(OTCQX:SEUSF) ("Sintana" or the "Company") is pleased to announce, further to a public press release from Trago Energy Pty Ltd ("Trago"), a wholly-owned subsidiary of Custos Energy (Pty) Ltd. ("Custos"), that Trago has entered into an agreement with Harmattan Energy Limited, an affiliate of Chevron Corporation ("Chevron'), in respect of its 10% participating interest in Petroleum Exploration License 90 ("PEL 90"). Sintana maintains a 49% indirect interest in Trago.

Specifically, the agreement provides for the transfer of all of Trago's participating interest in PEL 90 to Chevron, in exchange for $11MM in cash at completion and further contingent consideration payable on the achievement of appraisal and production milestones, including the revenues associated with commercial production currently estimated to be between 1.5 and 2.5 MM barrels of oil (dependent upon commodity price assumptions.)

The transaction provides Trago, through the contingent consideration with ongoing exposure to the significant prospectivity and upcoming activities on PEL 90, including the Nabba-1X exploration well, while eliminating Trago's funding and capital risk.

Completion of the transaction remains subject to governmental, regulatory and third-party approvals. Following completion, Trago will no longer hold a participating interest in PEL 90 and will have no further obligation to fund its share of costs on the licence, including the Nabba-1X exploration well. Any upfront consideration, net of all costs including fees and taxes, shall be used by Sintana to continue to support its corporate activities.

Upon completion of the transaction, Custos will contribute N$10 million to the University of Namibia ("UNAM") Foundation towards the construction of UNAM's new campus in Walvis Bay, as recently announced.

Robert Bose, Chief Executive Officer of Sintana Energy, said:

"This transaction is a further demonstration of our ability to reduce the capital intensity and downside risk of our portfolio while preserving exposure to the successful outcomes associated with high impact exploration evolving into production.

We look forward to the highly anticipated, upcoming Nabba 1-X well on PEL 90. Retaining capital free exposure to the significant prospectivity and opportunity associated with another Orange Basin license bracketed by the successful discoveries at Mopane and Venus adds material, potential upside to our world-class Atlantic margin portfolio."

PEL 90 is located offshore Namibia in the Orange Basin and covers an area of approximately 5,433 km². The licence is operated by Chevron. Adjusted for recently announced, but as yet uncompleted, farm-out to Equinor and prior to adjustment for Trago's interest exchange, the PEL 90 participants include Chevron (35.1% interest) Qatar Energy (27.5%), Equinor (17.4%), the National Petroleum Corporation of Namibia (10%) and Trago (10%). No reserves or resources have been attributed to PEL 90. As an exploration licence, PEL 90 has not generated any revenue.

The person responsible for arranging the release of this announcement on behalf of the Company is Robert Bose, Chief Executive Officer.

For further information, please contact:

Sintana Energy Inc
Robert Bose, Chief Executive Officer
Eytan Uliel, President
Tel: +44 (0)7 747 845 987
Zeus - Nomad and Joint Broker
Antonio Bossi / Darshan Patel / George Duxberry
Simon Johnson (Broking)
Tel: +44 (0) 20 3829 5000
Stifel - Joint Broker
Callum Stewart / Simon Mensley
Ashton Clanfield (Broking)
Tel: +44 (0) 20 7710 7600
Jonathan Paterson - Investor Relations
jonathan.paterson@harbor-access.com
Tel: +1 475 477 9401
CAMARCO - Financial PR
Billy Clegg / Georgia Edmonds / Sam Morris
Tel: +44 (0) 20 3757 4980

About Sintana

Sintana, the Canadian parent company of a group of companies, is focused on the acquisition, exploration, potential development, and ultimately the monetisation of a diverse portfolio of interests in high-impact assets with significant hydrocarbon resource potential in emerging "frontier" geographies. Specifically, this includes interests in eight licences in two countries, Namibia and Uruguay, as well as pending indirect interests in additional licences in Namibia and Angola (and legacy assets in Colombia and The Bahamas), providing exposure to a range of geologic plays, basins, operators, regulators, jurisdictions and geopolitical regimes.

https://www.sintanaenergy.com

Forward-looking statements

Certain statements in this announcement are, or may be deemed to be, forward looking statements, including statements with respect to the anticipated completion of the Acquisition on terms currently proposed or at all, the receipt of all associated regulatory approvals and satisfaction of all closing conditions, and the prospective nature of PEL 37. Forward looking statements are identified by their use of terms and phrases such as "believe'', "could'', "should" "envisage'', "estimate'', "intend'', "may'', "plan'', "will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Company's current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Company's current beliefs and assumptions and are based on information currently available to the Company. Several factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions, competition, failure to obtain regulatory approvals or satisfy conditions precedent to the completion of the Acquisition, changes in project parameters as plans continue to be refined, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Company believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements. The Company disclaims any obligation to update forward-looking statements contained herein other than as required by applicable law.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE: Sintana Energy Inc.



View the original press release on ACCESS Newswire

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What consideration will Trago receive under Sintana Energy's PEL 90 interest exchange?

Trago will receive $11MM in cash at completion and contingent consideration payable upon appraisal and production milestones. The contingent consideration includes revenues associated with commercial production currently estimated at 1.5–2.5 MM barrels of oil, dependent on commodity price assumptions. Sintana holds a 49% indirect interest in Trago.

What approvals are required to complete Sintana Energy's PEL 90 transaction?

Completion requires governmental, regulatory and third-party approvals. Following completion, Trago will no longer hold a participating interest in PEL 90 and will have no further obligation to fund its share of licence costs, including the Nabba-1X exploration well.

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