Namibia-focused explorer Sintana Energy provides update on Challenger acquisition

Canadian oil and natural gas exploration company Sintana Energy Inc. (TSX-V: SEI) on October 21 provided an update on its intended acquisition of Challenger Energy Group (AIM: CEG), an upstream oil and gas company.

Sintana earlier this month announced its agreement to acquire Challenger in an all-share deal, which valued Challenger’s issued and to-be-issued share capital at about CAD83.6mn ($60mn). Following completion, Challenger shareholders will own approximately 25% of the issued share capital of Sintana, it said.

According to the update, Challenger filed a claim with the Isle of Man High Court on October 21 seeking an order to convene a shareholder meeting to vote on Sintana’s proposed acquisition of the company through a Scheme of Arrangement.

If the court grants permission, the shareholder meeting will be held on November 26 to consider and, if approved by at least 75% of voting shareholders, the Scheme will then return to the High Court for a final hearing on December 9, 2025, at which the court may sanction the Scheme, thereby giving legal effect to the acquisition.

“As previously announced, the independent directors of the board of Challenger intend to recommend unanimously that Challenger shareholders vote in favour of the acquisition,” Sintana said in the update.

Sintana is engaged in oil and gas exploration and development activities in five large, highly prospective, onshore and offshore petroleum exploration licences (PELs) in Namibia as well as in Colombia’s Magdalena Basin. The company says its “exploration strategy is to acquire, explore, develop and produce superior quality assets with substantial value-added potential.”

Challenger Energy is focused on high-impact exploration offshore Uruguay. The explorer holds a 40% stake in Uruguay’s AREA OFF-1 block alongside Chevron (operator with a 60% interest) and operates AREA OFF-3 with a 100% working interest, making it the only junior company with a significant offshore position in Uruguay. Challenger also holds legacy assets in the Bahamas

According to Sintana, the transaction is expected to establish a leading exploration platform spanning the Southern Atlantic conjugate margin, combining assets across two of the world’s most active and emerging hydrocarbon frontiers and strengthened through partnerships with major upstream operators.

“The combination of Sintana and Challenger delivers on our long-term strategy to create and execute on a portfolio of exposures to high-impact exploration opportunities,” said Sintana CEO Robert Bose. “Expanding our aperture to capture the promise of the Atlantic margin from Namibia and Angola to Uruguay with a diversified portfolio of development stage and exploration assets creates a market leader positioned to deliver significant success.”

Completion of the acquisition is subject to customary regulatory, stock exchange, and Challenger shareholder approvals. It is expected to close by the end of the fourth quarter of 2025, the company said. Sintana also intends to seek admission of its shares to trading on London's AIM later this year.