Ratification of Simba Energy's Production Sharing Contract in Chad
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/25/13 -- Simba
Energy Inc. ("Simba" or the "Company") (TSX
VENTURE:SMB)(OTCQX:SMBZF)(FRANKFURT:GDA), the pan-African oil & gas
explorer, is pleased to announce that the Production Sharing Contract
(PSC) between the Government of Chad and Simba Energy has been
The PSC covers three blocks: Chari Sud Block I (6,217 km2), the
southern 50% of Chari Sud Block II (3,711 km2) and Erdis III (15,270
The ratified PSC confirms Simba's exclusive right and authority to
carry out all petroleum exploration, development and production
activities in the defined contract areas.
The Chari Sud Blocks lie on Chad's southern border, just southeast of
the Mangara and Badila oil fields where Caracal Energy Inc. (formerly
Griffiths Energy) and Glencore's proven reserves are currently in
advanced stages of appraisal and production development.
Erdis III is located in the north of Chad in the south western
portion of the Erdis basin, known in Libya as the Kufra basin, where
there have been discoveries. Recent gravity across Erdis III
indicates the presence of a major depo center on the block with a
sediment source to the east and the presence of deep mature source
beds supporting the Company's view of the block's prospectivity.
As previously announced (in October 2012), the PSC for all three
blocks has a first exploration phase of five years and a second
exploration phase of three years. The first exploration phase
requires geological and geophysical studies to include processing and
reinterpretation of existing 2D seismic, acquisition of at least 750
kilometres of new 2D seismic, as well as 400 km2 of 3D seismic (or 2D
equivalent) to determine the range of possible drilling opportunities
for the second phase that requires two exploration wells.
Hassan Hassan, Managing Director of Operations stated, "We're
delighted to have the PSC ratified by the National Assembly and the
President of Chad. It enables us to embark on an exciting exploration
program on this highly prospective acreage. We have an experienced
technical team in place and the exploration program is presently
being finalised. An early stage farmout to accelerate this program is
one of the options currently under consideration and discussions with
interested parties on a potential partnership are ongoing."
About Simba Energy:
Simba Energy Inc. is an international oil & gas exploration company
focused on onshore Pan-African opportunities. The Company holds
assets in Kenya, Chad and Guinea.
Simba's objective is to establish itself as a diversified
international developer and producer with a growing oil & gas acreage
position with significant upside potential for shareholders.
We seek safe harbor.
Simba Energy Inc.
Simba Energy Inc.
Toll Free: 1-855-777-4622
Lionsgate Communications - Financial Public Relations (UK)
+ 44 (0)779 189 2509
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