Sintana Energy’s definitive agreement with Crown Energy will enable it to get up to 67% of the issued and outstanding shares of Giraffe Energy, which is the owner of a 33% interest in petroleum exploration license 79 (PEL 79), governing blocks 2815 and 2915 located inboard of blocks operated by BW Energy, Rhino Resources, and Shell in Namibia’s Orange Basin.
According to the Canadian player, the acquisition is structured as an initial purchase of 49% of the issued and outstanding shares of Giraffe from Crown Energy for a cash consideration of $2 million, which the firm proposes to fund from resources on hand.
However, Sintana also retains an option to boost its ownership of Giraffe up to 67% anytime over the five years following closing based on the shares issued and outstanding at the time of the option exercise for an additional cash payment of $1 million.
This acquisition is subject to the satisfaction of various closing conditions and the receipt of all applicable approvals, including the approval of the TSX Venture Exchange. The National Petroleum Corporation of Namibia (NAMCOR) is currently the operator of PEL 79 with a 67% interest.
