The stock price of Sintana Energy, Inc (OTCPk-ZDEXF) increased dramatically at its last close of $0.1272, an increase of 27.97%. In the last week, ZDEXF stock showed a performance of 63.50% compared to its monthly performance of 147.95%. In the absence of current news, ZDEXF gained in value, which allows us to look at recent developments for a more comprehensive understanding of the stock.
How did ZDEXF do recently?
As part of Sintana Energy’s current activities, it is exploring for and developing hydrocarbons in Colombia’s Magdalena Basin. With ZDEXF, the focus is on acquiring, exploring, developing and producing high-quality assets with substantial reserve potential.
Sintana Energy announced last month that it has entered into a definitive agreement dated effective September 13, 2021 with Grisham Assets Corporation allowing ZDEXF to acquire a 49 percent interest in the entire issued and outstanding stock of Inter Oil (Pty) Limited.
- Namibian private company Inter Oil holds an indirect portfolio of petroleum exploration licenses.
- PEL 87 is among the carried interests, as are each of PELs 82 and 83 and 20% in PEL 90.
- As part of the agreement, ZDEXF is entitled to receive a 30% indirect interest in Block 1918B in exchange for the right to obtain a 90 percent interest through Inter Oil.
- At least three of the four offshore PELs to be acquired are directly accessible from Kudu Gas Field, Venus-1, and Graff-1.
- Additionally, there is a prospects block nearby that is currently being evaluated by Reconnaissance Energy Africa Ltd.
- A cash payment of US$4,000,000 and an issuance of 34,933,333 shares of ZDEXF constitute the consideration for the Acquisition.
- Funding for the Cash Payment may be arranged either in a single payment of US$3,000,000 payable at closing or in two tranches, with the first amount of US$1,000,000 payable within 90 days of closing.
- In exchange for 33,600,000 common shares priced at $0.15 per share, the Cash Payment will raise $5,040,000 in aggregate gross proceeds.
- An agreement that Charlestown Energy Partners, LLC will subscribe for common shares offered under this offering is a condition of the close of the private placement.
How ZDEXF will move forward?
The transaction not only diversifies Sintana Energy (ZDEXF)’s portfolio, but also exposes us to one of the most promising and active geographies in terms of onshore and offshore exploration opportunities for crude oil and natural gas. Both in Colombia and Namibia, the transaction provides ZDEXF with multiple opportunities to create significant shareholder value.