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Simba Energy In Kenya

Simba Energy In Kenya

Simba Energy has been granted a Production Sharing Contract (PSC) by the Ministry of Energy, Republic of Kenya for Block 2A, comprising 7,801.72 square kilometres in northeast Kenya.

In late January, Africa Oil Corp and its partner Tullow Oil began drilling on the Ngamia-1 well on block 10BB in the Lokichar basin, meant to reach a depth of 2,700 metres as part of a multi-well programme in the block and adjacent blocks.  Tullow Oil also plans to drill the Paipai-1 well in Block 10A in the second quarter of 2012, meant to go 4,500 metres deep. The company is also conducting a 500 km 2D seismic programme in Block 13T, followed by a 1,350 km 2D survey in Block 10BA.

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Block 2A overlies the southern tip of the Mandera Basin while the southwest corner of the block extends into the Anza Basin. Block 2A also has excellent potential for significant oil and gas discoveries as evidenced by the following evaluation.

Highlights

Source Rock

The Mandera Basin is Permo-Triassic to Tertiary in age with a sediment thickness of 10,000 meters. Potential source rock interval is mid Jurassic-Lower Cretaceous and comparable with the larger Mandera-Lugh basin in Ethiopia and Somalia

Wells

Only four wells have been drilled in the Mandera basin with oil shows encountered at 40-44m in the Tarbaj stratigraphic well drilled by Total

Oil & Gas Shows

In the Anza basin lower Cretaceous reef structures have been mapped with a potential reservoir thickness of 300m-500m.  Source rock is likely Lower Cretaceous.  The eleven wells drilled in the Anza Basin have encountered oil shows and/or gas shows

Regional Seismographic Coverage

Present 2D seismic coverage, although regional in nature, identified numerous structures and a major stratigraphic pinch-out.  The limited seismic coverage available indicates a stable stratigraphic sequence with some very good exploration leads

Exploration Interest

Remaining of exploration interest to the Company is the flank of the basement high structure where two AMOCO wells drilled in 1987 (ELGAL#1 to 1,280 meters in Permian Karroo and ELGAL#2 to 1,908 meters in Triassic Karroo) were plugged and abandoned as no reservoir rocks were encountered

Rock Maturity

The area of the block overlying the Mandera basin is of particular interest as the analysis of the oil from the seeps at Tarbaj although severely biodegraded indicate a source rock maturity for the Mandera basin which is well within the oil window

The Company will immediately begin re-interpretation of all available existing data, as well as initiate baseline environmental work, to support the design and planning of a new seismic acquisition program.