Canadian oil and gas explorer Sintana Energy highlights strong upstream momentum offshore Namibia

Canadian oil and natural gas exploration company Sintana Energy has shared new details around exploration activities offshore Namibia. The TSXV-listed independent explorer, which holds minority indirect interests in several blocks with operators including Galp (Portugal), Chevron (US), and Pan Continental (Australia), highlighted developments in Petroleum Exploration Licence 83 (PEL 83) and the Mopane project, Proactive Investors reported on May 3.

Sintana Energy holds a 4.9% stake in PEL 83, operated by Portuguese energy giant Galp Energia offshore Namibia in the highly prospective Orange Basin. According to Sintana, Galp has recently confirmed its estimate of 10bn barrels of original oil in place (OOIP) for the Mopane field’s first two wells.

Although that estimate was initially met with scepticism, Galp informed investors of its validity in its recent quarterly update. The company also hinted that the actual amount of oil discovered might be even higher than the current estimate, with a potential for even better results than expected from the discovery.

Furthermore, Sintana Energy said that Galp had also released a new estimate of 900mn barrels of recoverable oil equivalent as contingent resources, based on the operations completed up to 30 November 2024. The estimate was prepared by the Dallas-headquartered independent engineering firm DeGolyer and MacNaughton. According to Galp, additional drilling has occurred since that date, indicating the potential for further growth in the resource base.

Meanwhile, a farm-out process for PEL 83, where a share of interest in the block would be offered in exchange for funding part of the exploration or development costs, was ongoing and was expected to be finalised by the end of 2025, Sintana said as reported by Proactive Investors.

The energy world is currently watching Namibia following massive oil and gas offshore discoveries by TotalEnergies (France), Shell (UK), Galp Energia (Portugal) and privately-owned South Africa-based explorer Rhino Resources. At the 7th Namibia International Energy Conference (NIEC) in Windhoek in April, industry leaders reaffirmed their commitments to exploration in Namibia’s prolific Orange Basin.

Sintana Energy’s CEO Robert Bose, who attended the conference, spoke of high levels of engagement from global operators who were exploring both existing and new opportunities in Namibia. “The tone was very good,” he added.

Bose highlighted the latest light oil discovery by Rhino Resources and partners in the adjacent PEL85. The Capricornus 1-X light oil discovery is considered to be a game-changing development for Namibia, with the exploration well flowing at 11,000 barrels per day (bpd) during testing. According to Bose, its success indicates that the broader Orange Basin, including adjacent shallow-water areas, may hold significant oil potential. This perspective is particularly relevant for Sintana, which also holds interests in nearby shallow-water blocks like PEL 79, making such discoveries “really exciting” for their exploration strategy.