August 12, 2014, Vancouver, British Columbia. Simba Energy Inc. (TSXV: SMB, Frankfurt: GDA, OTCQX: SMBZF) (the “Company” or “Simba”) announces it is in receipt of Bell Geospace’s final report and results from their aerial FTG (Full Tensor Gradiometry) survey analysis and interpretation at it’s 100% interest Block 2A concession in Kenya.
In summary the results have identified five structural features with independent closures varying in size from 30kms² to +100kms² in both the Mandera and Anza basins. Given the FTG results, the Company is able to better focus and narrow the area and extent of the now planned 2D seismic program necessary to further develop drilling locations. The planned seismic program will focus on the three highest ranking & sizeable targets identified by the FTG in both basins.
“The FTG results, in conjunction with correlating data from previous 2D & passive seismic, drill logs and comparable data at other discoveries, indicate a number of potential drilling targets in Block 2A. These results and final report will be made available to our interested farm-in partners. The FTG data will be used to design and constrain the 2D seismic program, which once acquired, will allow us to determine depths, create volumetric estimates and to define drilling locations all of which is to be published in an updated (NI 51-101 compliant) resource estimate (or CPR – Competent Persons Report).”, remarked Robert Dinning, President & CEO.
The map provided below highlights the FTG survey’s results. The FTG results will inform the design and planning to acquire 2D seismic over the specific FTG anomalies observed in both basins. An area in the Mandera basin that covers the two sizeable ‘primary’ and one ‘secondary’ target areas designated as M1 & M3 (prospects) and M2 (lead) is estimated to require +/-175 line kilometers, while an additional 100 kms are estimated for the Anza basin to cover leads A1, A4 and A5.
Simba’s Block 2A concession covers an area of over 7,800 km² that overlies portions of two very prospective basins, each with proven hydrocarbon systems: The Mandera basin where the Tarbaj oil seep (just to the north of Block 2A’s northern boundary) has confirmed marine origin source rocks deeper in the basin in Lower / Mid Jurassic formations, and; the Anza basin, one of the largest Tertiary-age rift basins in the East African rift system and with a geological setting similar to the South Lokichar basin where Africa Oil and Tullow have recently had significant discoveries.
The strong exploration potential for the target areas in both the Mandera and Anza basins is supported by the following rationale.
- The Mandera basin offers significant exploration potential with a Jurassic-Triassic section deposited during a period of marine conditions which typically result in larger sedimentary bodies that in turn form larger reservoirs
- Bell Geospace’s recent FTG survey identified a north-east trough along the Mandera basin margin parallel to a series of independent closed structures and indicate the margins of the Mandera basin possibly hosting a “String of Pearls” trend play
- Numerous formations offer reservoir rock potential, for example: the coarse grained Triassic, Mansa Guda sandstone has an estimated 15% average porosity. Sin Rift 1 & 2 sandstones although not penetrated locally have good reservoir potential and have 4 way closure on prospect M1.
- Shale can be found at many levels as a seal (eg: Elgal shale being equivalent to Bokh formation in Ethiopia or Mansa Guda)
- Afren is expected to spud the first well for the Khorof prospect in Block 1 (Afren 80%), approximately 100 kms east northeast of Block 2A’s primary target areas in the Mandera basin, with results anticipated in Q1-15.
- 4 way closure at M1 & M3 prospects is supported by each of: 2D seismic, passive seismic and FTG
- Planned 2D seismic program will delineate prospects’ depth, potential volumetrics & refine drilling locations and test ‘pearl’ trend identified by FTG and earlier passive seismic
- The Anza Basin is Tertiary to Cretaceous in age. During the Rift 3 period Upper Cretaceous and Lower Tertiary age, activity from the southeast imposed a new tectonic pattern so major NW trending faults traversed Kenya and formed the Anza Basin, as a deep graben (Kerr J William et al)
- Block 2A’s portion of the Anza basin lies within the proven “String of Pearls” play along the basin’s SE margins and has been significantly de-risked by Africa Oil’s recent Sala-1 commercial gas discovery (30kms NW in Block 9)
- The ‘pearls’ trend extends to the Badada prospect of which the northern extent (20%) straddles Block 2A’s southern boundary (with Block 2B) and is analogous with the Sala prospect. Simba’s primary target in the Anza basin, A1 (at 44kms²) and secondary targets A4/A5 (55kms²) lie on this ‘pearls’ trend with, and between, the Sala and Badada prospects
- Rework of available 2D seismic and acquisition of an additional +/- 100 line kilometers of 2D seismic will be used to refine depths & allow for reservoir volume estimates as well as better locate potential drilling locations, all of which will support the creation of a resource model and estimate for the Anza basin portion of Simba’s (100% interest) Block 2A concession
- Africa Oil has just spud Sala-2 and it expects Anza gas will be commercialized by end of 2016, preparations to spud Badada-1 in Q4-14 are now underway by Block 2B’s JV partners: Premier Oil (55%), Taipan Resources (30%) and Tower Resources (15%)
James W. Dick P Geol., P. Eng., (APEGA) is a qualified person in accordance with National Instrument 51-101 and has reviewed and approves the technical disclosure in this news release.
This news release is intended for consideration in conjunction with the above map. If this map is not available in this communication it is available by visiting Simba Energy’s website, Kenya webpage, or News Releases page, or by selecting the following link: www.simbaenergy.ca
About Simba Energy:
Simba Energy Inc. is establishing itself as a diversified international explorer and developer with a growing oil and gas acreage position of underdeveloped or not previously exploited assets in Africa, with onshore Production Sharing Contracts in Kenya, Guinea and Chad that are under.
ON BEHALF OF THE BOARD
President & CEO
For further information, contact: Mark Sommer, firstname.lastname@example.org, Toll Free: 1‐ 855‐777‐4622.
This News Release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results. Neither the 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.