Chevron Secures Trago's Interest in Namibia's PEL 90

Sintana Energy Inc. announced that its subsidiary, Trago Energy Pty Ltd., has entered into an agreement with Harmattan Energy Limited, an affiliate of Chevron Corporation, regarding Trago's 10% participating interest in Petroleum Exploration License 90 (PEL 90) in Namibia.

The agreement provides for the transfer of Trago's participating interest to Chevron in exchange for $11MM in cash at completion and contingent consideration payable on appraisal and production milestones. These milestones include commercial production estimated between 1.5 and 2.5 MM barrels of oil, dependent on commodity price assumptions.

Trago will no longer hold a participating interest in PEL 90 after the transaction is completed, eliminating its funding and capital risk. Sintana Energy Inc. will use any upfront consideration to support its corporate activities.