Sintana Energy Inc. SEUSF

How does Sintana hold its interest in pel 93, pel 87, pel 90

[lamboperthv10]

I seek advice as to who are the primary licence/permit holders on the permit/licence documents, in which Sintana has an indirect interest through the Sintana shareholding.

From Sintana presentations, Sintana holds and indirect interest in PEL 83/ Mopane discovery block through its 49% shareholding in Custos who hold a 10% free carried interest to first oil. Great deal.

I am of the view that which ever major buys a  40% interest in pel 83 from GALP, will also look to buy the Custos 10% in pel 83 to get to 50% of pel 83 and operatorship.

When these type of 'permit/licence sales' take place, my experience with majors is that when they are sitting around the board table the CEO will say to the finance guys 'who is this junior Custos? and you are telling me that we have to spend 10% of everything to get to first oil giving them a free ride to first oil and then they have 10% of  the reserves we proved up and production for free?"

The response I expect would be "buy this Custos company now!. We then get 50% of the permit and them out of our hair!"

The CEO would then ask what else does Custos hold - assetts and liabilities?

I believe Custos (?) is also a primary interest holder in pel 87/Saturn prospect and the 7.4% interest would be attractive to the major as provides an insight to the value of the block, if the major owns Custos.

And if when Saturn is drilled, and a several billion boeip discovery made, the major would then be on the ground floor to look at acuiring the Pancontinental 20% interest.

So the Custos interest in pel 87/Saturn has some vale for the major to consider.

As to PEL90, the Chevron block, I believe the Sintana indirect interest in pel 90 is through a shareholding in the primary permit holder Trago.

I have checked the Sintana Annual Reports/Accounts and all a bit vague to me on the ownership chain of  Sintana's indirect interest in the offshore Namibia permits.

I do see that Inter oil has been inserted as an intermediary shareholder for the indirect Sintana interests in pel 83/ pel 87/pel 90.

The aim of the above is to get some idea of the value of Custos if the major that buys into the GALP/Mopane block decides to buy all the shares in Custos to 'clean up' the permit interests.

Custos shareholders would get cash for all their Custos shares, and I assume there would be a distribution to Sintana shareholders in the offing! 

It would indeed be ironic if ExxonMobil bought into pel 83/mopane and then wanted to buy Custos, as there is the minor matter in Columbia still to be resoved between ExxonMobil and Sintana! Who knows. Might see this cleaned up as well as part of the Custos sale, should it happen.

All speculation on my part on possible buyer of Custos if a sale of Custos were to take place.

So look forward to advice of the direct permit/licence holders on the permit documents. My internet provider won't allow me to access the Namibian government permit list.

[hikari]

@ Lambo Perth V10 I would not be surprised if Mr Knowledge Katti wants to sell 5% with Sintana and keep the other 5% for his grand kids https://www.linkedin.com/in/knowledge-katti-7130b14b/

[hikari]

IMO there is another strategic concideration. The majors and supermajors could be very interested to buy Sintana completely, although Sintan got only a minor percentage as share in their off shore blocks. But when a major buys Sintana now, the major will get easier access to all data, infos of all the Sintana offshore blocks. This data advantage can help the major to select which block is worth