After the first post on the oil and gas potential offshore Namibia, it is time to talk about how energy investors can benefit. Many of you are reading this post because of the high expectations following the series of discoveries by Total, Shell and Galp. One of the companies that has been a standout performer in recent months is Sintana Energy, which is also one of the most followed retail energy investors.
A question related to Sintana. Does Sintana's deal with Galp imply that Sintana won't pay anything until production? I don't really understand their deal. Thx a lot.
It’s kinda tricky. The CapEx is carried to production, which is pretty much what you said. However, I do think there’s a cap on the maximum CapEx that can be carried. In a 2022 presentation, they mentioned an estimated $86 million of CapEx on the block that would be carried, so at the very least, that’s covered (and there’s still a lot of room to go). If that gets fully used up, I believe Sean Austin has stated in private conversations that there might be an arrangement where it’s “financed and recovered via production.” But AFAIK, that’s not official. I’d love a bit more transparency on this front. Hope that clears things up a bit.
Amazing write-up ! The breadth of your work and knowledge is incredible !
I bought my first shares under CAD 0.10, adding along the way with the good news coming again and again, haven't sold a share since then, let's see what the future brings :)
A question related to Sintana. Does Sintana's deal with Galp imply that Sintana won't pay anything until production? I don't really understand their deal. Thx a lot.
It’s kinda tricky. The CapEx is carried to production, which is pretty much what you said. However, I do think there’s a cap on the maximum CapEx that can be carried. In a 2022 presentation, they mentioned an estimated $86 million of CapEx on the block that would be carried, so at the very least, that’s covered (and there’s still a lot of room to go). If that gets fully used up, I believe Sean Austin has stated in private conversations that there might be an arrangement where it’s “financed and recovered via production.” But AFAIK, that’s not official. I’d love a bit more transparency on this front. Hope that clears things up a bit.
Thanks very much to you "Tourists" for such a comprehensive synopsis.
Very impressive write-up! Thanks a lot! I bought my first shares at 0.15, but I had no idea what I was doing... Now, I know!
Amazing write-up ! The breadth of your work and knowledge is incredible !
I bought my first shares under CAD 0.10, adding along the way with the good news coming again and again, haven't sold a share since then, let's see what the future brings :)
Great write-up guys, thanks 🙏