Sintana Energy Inc. Provides Portfolio Update - Walvis Basin Expansion

Rhea-AI Summary

Sintana Energy (OTCQX:SEUSF) has signed a Letter of Intent granting exclusivity through 30 April 2026 to pursue an indirect interest in PEL 37 in the Walvis Basin, offshore Namibia.

PEL 37 is a 17,295 km2 shallow-to-deep-water block adjacent to PEL 82, which is seeing accelerated exploration activity by an affiliate of Chevron. Sintana will pay a $1.0M exclusivity deposit, with one-third non-refundable if Sintana elects not to proceed, while it conducts technical, commercial and legal due diligence and negotiates capital contribution terms to acquire a shareholder interest in Paragon Oil and Gas.

Positive

• Exclusivity secured through 30 April 2026 to complete due diligence
• $1.0M deposit shows committed option to proceed
• Targeted asset is a 17,295 km2 high-impact block in the Walvis Basin
• Block is adjacent to PEL 82 where Chevron affiliate plans accelerated exploration

Negative

• One-third of the $1.0M deposit is non-refundable if Sintana elects not to proceed
• Agreement is an LOI providing exclusivity only; no binding acquisition or license transfer yet
• PEL 37 is currently 100% held and operated by Paragon; Sintana would acquire only an indirect interest after negotiations

News Market Reaction

+5.30%

1 alert

+5.30% News Effect

On the day this news was published, SEUSF gained 5.30%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

TORONTO, ON / ACCESS Newswire / January 21, 2026 / Sintana Energy Inc. (TSX-V:SEI)(AIM:SEI)(OTCQX:SEUSF) ("Sintana" or the "Company") is pleased to announce that it has entered into a Letter of Intent ("LOI") providing for a period of exclusivity in relation to an investment providing for an indirect interest in PEL 37 in the Walvis Basin, offshore Namibia.

PEL 37

PEL 37 is located in the heart of the Walvis Basin, offshore Namibia, immediately to the north of PEL 82 currently operated by an affiliate of Chevron Corporation ("Chevron") and where Custos Energy (Pty) Ltd ("Custos"), an indirect affiliate of Sintana, is a working interest owner. Chevron has previously announced its intention to accelerate exploration activities on PEL 82 including drilling an exploration well. Custos is carried for the initial operations.

PEL 37 is currently held 100% and operated by Paragon Oil and Gas Pty Ltd ("Paragon"), a local Namibian company. PEL 37 covers an area of 17,295km², in relatively shallow water (100 - 1500m), with identified prospects at water depths between 300 and 600m, and with multiple large fans directly overlying a proven, mature oil-prone Aptian source rock.

The LOI provides Sintana with a period of exclusivity, initially through to 30^th April 2026, to undertake technical, commercial and legal due diligence on Paragon and PEL 37, and to negotiate appropriate terms and documentation for contribution of capital by Sintana to enable work obligations to be satisfied, and which would result in Sintana becoming a shareholder of Paragon and thus an indirect holder of an interest in PEL 37.

Sintana will pay a deposit of $1 million to secure the exclusivity, of which 1/3 is non-refundable in the event that Sintana, for any reason, elects not to proceed.

Robert Bose, CEO of Sintana, said: "The LOI we have entered into provides, at low cost, exclusivity over a material indirect interest in PEL 37, which is a high-impact block at the heart of the Walvis Basin. In particular, PEL 37 is immediately adjacent to PEL 82, where we already have an interest and where an initial exploration well is expected over the coming quarters. Investing for a material stake in PEL 37 would thus afford additional optionality associated with upcoming activity in our existing portfolio. In the coming months, and with the benefit of the exclusivity secured, we will undertake the work needed to assess whether we wish to pursue this strategic expansion of our core portfolio - further announcements will be made in due course".

For further information, please contact:

Sintana Energy Inc Robert Bose, Chief Executive Officer Eytan Uliel, President	Tel: +1 212 201 4125
Zeus - Nomad and Joint Broker Antonio Bossi / Darshan Patel / George Duxberry Simon Johnson (Broking)	Tel: +44 (0) 20 3829 5000
Cavendish Capital Markets Limited - Joint Broker Neil McDonald / Derrick Lee / Pearl Kellie	Tel: +44 (0) 20 3493 8000
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. 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 Directors' 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 Directors' current beliefs and assumptions and are based on information currently available to the Directors. 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, 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 Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

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

What did Sintana Energy (SEUSF) announce on January 21, 2026 about PEL 37?

Sintana announced an LOI granting exclusivity to pursue an indirect interest in PEL 37 and to undertake due diligence through 30 April 2026.

How much is Sintana paying for exclusivity on PEL 37 (SEUSF)?

Sintana will pay a $1.0M deposit to secure the exclusivity, with one-third non-refundable if it elects not to proceed.

What is the size and location of PEL 37 referenced by Sintana (SEUSF)?

PEL 37 covers 17,295 km2 in the Walvis Basin, offshore Namibia, with prospects at 300–600m water depth.

Why is adjacency to PEL 82 important for Sintana (SEUSF)?

PEL 37 lies immediately north of PEL 82, where an affiliate of Chevron plans accelerated exploration, which could add optionality to Sintana's nearby interests.

Does the LOI mean Sintana (SEUSF) already owns a stake in PEL 37?

No; the LOI grants exclusivity to negotiate and complete due diligence but does not transfer ownership—any interest would follow negotiated capital contributions and documentation.