Vancouver, British Columbia, October, 27, 2011. SIMBA ENERGY INC TSXV: SMB
October 27, 2011, Vancouver, British Columbia, Simba Energy Inc. (the “Company”) (TSXV: SMB, Frankfurt: GDA, OTCCBB: SMBZF) is pleased to provide the following corporate update on its current activities as well as the status on a number of applications for Production Sharing Contracts (PSCs) currently in the final stages of their review and negotiation process.
Simba President & CEO Robert Dinning said, “In spite of very difficult market conditions the Company has been able to remain focused on the task of pursuing and securing the assets we have targeted. As a result, management anticipates finalizing a number of strategic PSC applications in the near future. By this time, the Company expects to be holding 100% interests in a number of Production Sharing Contracts in some very strategic and prospective blocks in Africa for its technical team to advance through the early exploration and development stages of work.
Republic of Mali – PSC for Block 3
The Company has received a formal notification that the Republic of Mali’s Council of Ministers has adopted a Decree granting Simba Energy a PSC for Block 3. This notification has been approved by the Republic of Mali’s Ministry of Mines, Energy, and Water with the support of the government agency AUREP (L’Autorité pour la Promotion de la Recherche Pétrolière au Mali or The Authority for the Promotion of Oil Research in Mali).
Management anticipates traveling to Bamako in the very near future for the formal signing ceremony and looks forward to providing further information about the block and its development plans in a more detailed news release.
Liberia – Application to convert Hydrocarbon Reconnaissance License NR-001 into PSC status
Efforts to finalize and close this negotiation have been delayed by the current national election in Liberia. A run-off election is scheduled for November 8th 2011. Officials at NOCAL (National Oil Company of Liberia) have informed that negotiations with the Company will re-commence immediately after the elections are over. Management believes that while negotiations have taken on a protracted nature, it is very close to a finalizing this agreement and anticipates a conclusion swiftly after this process resumes.
Republic of Kenya – Block 2A
The Company is now a holder of a 100% interest in the PSC for a very prospective oil block in northeastern Kenya. Since signing the PSC with the government of Kenya in August, the Company has established an office in Nairobi and commenced the process of procuring the project’s next phases of work, primarily, the reprocessing of existing historical seismic data and the acquisition of further seismic data in conjunction with initiating base line environmental studies. The tender and selection process to procure these services is expected to take six to eight weeks with work due to commence in the first quarter of 2012. The technical team continues to compile and review all currently available data.
Republic of Guinea – Blocks 1 & 2 (onshore)
The Company successfully acquired a 60% interest in a PSC for onshore Blocks 1 & 2 in the Republic of Guinea this past July. Earlier this month, in Vancouver, the Company hosted a delegation of officials from Guinea as part of their review and approval of the Company’s technical and financial capabilities. The Company is confident that it has met or exceeded all the requirements set forth and anticipates formal approval before the end of this year. At this point, the Company intends to begin an aggressive assessment of basin characteristics where during its due diligence site visit the technical team observed very similar seep characteristics with those encountered at the Company’s concession in Liberia. Hyperdynamics Corporation (Texas) is currently drilling its first of two exploration wells 100 to 200 kilometres offshore from Blocks 1&2.
In addition to the above, the Company’s management and technical staff remain active pursuing a number of other assets in the region. Finally, in these coming weeks, those already familiar with Simba Energy can expect to see a new look and branding for our company.
About Simba Energy Inc.
Simba Energy is a Vancouver, B.C. based oil and gas Exploration Company focusing on underexplored, overlooked basins in its pursuit of hydrocarbon opportunities in Africa (currently Liberia, Mali, Ghana, Guinea, Kenya and others). This region has shown increased promise for development of new hydrocarbon deposits. The Company’s Senior Management Team aims to leverage their expertise and affiliations to pursue, secure and develop strategic assets that demonstrate high potential for drilling and or production operations; and to do so in a manner of best practices and to the betterment of those communities where we work.
ON BEHALF OF THE BOARD
“Robert Dinning”, President & CEO
We seek safe harbour.
“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.” This document includes forward- looking statements. When used in this document, the words “potential”, “plan”, ”could”, “estimate”, “expect”, “intend”, “may”, “should”, and similar expressions are intended to be among the statements that identify forward-looking statements. Although Simba Energy Inc. believes that their expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements”