(Sharecast News) - Sintana Energy said on Friday that its integration of Challenger Energy Group was progressing smoothly in the first quarter, after completing the all-share acquisition and admission to AIM in December.
The company reported a net loss of $1.1m for the three months ended 31 March, narrowing from $2.3m a year earlier, primarily reflecting $2.3m of net proceeds from the settlement of its VMM-37 arbitration with ExxonMobil, partly offset by higher general and administrative expenses.

Sintana said the settlement with ExxonMobil would result in total cash payments of $9m, of which $3m had been received, with a further $6m expected before the end of 2026.

Cash stood at $8.2m at the end of March, compared with $10.3m a year earlier, while total assets were $60.5m, down from $62.1m.

Operationally, the company highlighted Galp Energia's 57% upgrade to 3C contingent resources at the Mopane discovery in PEL 83 offshore Namibia, from 875 million barrels of oil equivalent to 1.38 billion barrels gross.

TotalEnergies had also confirmed a final investment decision target of 2028 and first oil in 2032.

Sintana said it had signed a letter of intent securing exclusivity over a potential indirect interest in PEL 37 in the Walvis Basin offshore Namibia, with definitive documentation expected in the second quarter and completion targeted for the second half.

In Uruguay, 3D seismic acquisition had started over AREA OFF-1, with around 1,600 square kilometres acquired in the first season and fast-track results expected in the fourth quarter.

At 1209 BST, shares in Sintana Energy were flat at 26p.

Reporting by Josh White for Sharecast.com.

See latest RNS on Investegate

• News Channel