Chevron Buys Sintana Subsidiary's Interest in Namibia's PEL 90

Sintana Energy Inc., the Canadian parent company of a group of companies focused on acquiring and exploring hydrocarbon resources, announced that its subsidiary Trago has entered into an agreement with Harmattan Energy Limited, an affiliate of Chevron Corporation.

The deal involves the transfer of all of Trago's 10% participating interest in Petroleum Exploration License 90 (PEL 90) to Chevron in exchange for $11MM in cash at completion and further contingent consideration payable on appraisal and production milestones. PEL 90 is located offshore Namibia in the Orange Basin, covering an area of approximately 5,433 km².

The transaction provides Trago with ongoing exposure to PEL 90's prospectivity and activities, including the Nabba-1X exploration well, while eliminating its funding and capital risk. Upon completion, Custos will contribute N$10 million to the University of Namibia Foundation towards the construction of UNAM's new campus in Walvis Bay.