Canadian oil and gas exploration company Sintana Energy has signed a letter of intent with Namibia-based Paragon Oil & Gas, securing an exclusive period to evaluate a capital investment that would provide Sintana with an indirect interest in Petroleum Exploration Licence 37 offshore Namibia.
The agreement grants Sintana Energy exclusivity through April 30, 2026, to conduct technical, commercial, and legal due diligence on Paragon Oil & Gas and negotiate terms for a capital contribution to fund work obligations on the license. Sintana has paid a $1 million deposit to secure the exclusivity period, one-third of which is non-refundable should the company elect not to proceed.
Located in the Walvis Basin, PEL 37 is operated and held 100% by Paragon Oil & Gas. The license covers 17,295 square kilometers and hosts a series of identified hydrocarbon prospects in water depths of 300 to 600 meters, featuring multiple large fan systems overlying a proven, mature, oil-prone Aptian source rock.
Following a string of commercial discoveries in Namibia’s Orange Basin—including Graff, Jonker, Venus, and Mopane—exploration momentum is increasingly shifting toward unlocking the underexplored potential of the Walvis Basin. Robert Bose, CEO of Sintana Energy, noted that the agreement provides, at low cost, exclusivity over a material indirect interest in a high-impact block at the heart of the Walvis Basin.
A potential indirect interest in PEL 37 would further consolidate Sintana Energy’s presence across Namibia’s offshore and onshore energy landscape. The company already holds indirect interests in several key licenses, including PEL 82 operated by Chevron, PEL 79 adjacent to the Kudu gas discovery, PEL 83 which hosts the Mopane discovery, and PEL 87 where Sintana and partner Pancontinental are advancing exploration efforts.
Source: energycapitalpower.com