Sintana Energy Inc. Announces VMM-37 Resolution

Executive Summary

• Sintana Energy’s subsidiary Patriot reached a settlement with ExxonMobil, ending arbitration over the VMM‑37 block in Colombia.
• Patriot will assign its rights and interests in VMM‑37 to ExxonMobil; in return ExxonMobil will pay $3 million within 60 days and a further $6 million upon regulatory approvals.
• The cash payments represent a total of $9 million inflow to the Company, improving liquidity and allowing focus on active high‑impact assets.

Key Details

• Parties Involved: Patriot Energy Oil and Gas Inc. & Patriot Energy Sucursal Colombia (Sintana subsidiaries) vs. ExxonMobil Exploration Colombia Limited & its Colombian subsidiary.
• Arbitration Outcome: Both parties agreed to dismiss the arbitration; Patriot will conditionally assign all rights/interest in VMM‑37 to ExxonMobil.
• Cash Consideration:
• First payment of $3 million due within 60 days of execution of the agreement.
• Second payment of $6 million payable upon receipt of required approvals from Colombian authorities (Agencia Nacional de Hidrocarburos, etc.).
• Regulatory Conditions: Assignment and second cash payment are contingent on approval by Colombian governmental agencies and satisfaction of contractual requirements.
• Strategic Rationale: Settlement removes legacy liability in Colombia, enabling Sintana to streamline operations and allocate resources toward its active portfolio across the Atlantic margin.
• CEO Comment: “We are pleased to bring this matter associated with our legacy position in Colombia to an initial conclusion…focus on our active, high impact portfolio.” – Robert Bose, CEO.

Notable Quotes

“We are pleased to bring this matter associated with our legacy position in Colombia to an initial conclusion. This outcome supports our efforts to streamline operations focusing resources on our active, high impact portfolio across the Atlantic margin.” – Robert Bose, Chief Executive Officer, Sintana Energy Inc.