Simba Energy Inc. Applies for Production Sharing Agreement (PSA) on 22,500 sq. km Block 3 in Mali’s Taoudeni Basin
December 13, 2010, Vancouver, British Columbia, Simba Energy Inc. (TSX.V: SMB) (the “Company” or “Simba”) is pleased to announce it has submitted an application for a (hydrocarbon) Production Sharing Agreement (PSA) on Block 3 in Mali, West Africa. The block consists of a 22,500 square kilometre parcel entirely within the central part of the 1.4 million square kilometer Taoudeni Basin that straddles the north/south boundary with Mauritania. Block 3’s western boundary lies on the border with Mauritania where Total SA (NYSE – TOT) recently announced a discovery.
Substantial seismic and exploration was carried out on Block 3 in recent years. The consensus amongst petroleum industry experts in the region is that the basin’s perimeter strongly demonstrates a Silurian source kitchen (as evidenced with black shales in the Carboniferous and sedimentary extents of the depression’s perimeter).
Significant natural gas and oil occurrences from several wells drilled in the area are documented in scientific publications. Total Organic Content (TOC) reported in the Taoudeni Basin varies from 5 to 20%. All four wells drilled in the basin from 1974 through to 1985 (Ouassa and Abolag in Mauritania, Yarba and Atouila in Mali) resulted in Hydrocarbon showings, indicative of the infracambrian stromatolitc limestone petroleum system and with source rocks composed of paleozoic black shales.
Robert Dinning, President & CEO, remarks, “After many months of work assessing and pursuing this asset, we are pleased to have submitted this application. The Taoudeni Basin is the largest underexplored basin for petroleum in West Africa. Eni S.p.A. (NYSE – E) carried out extensive seismic exploration over the entire concession area. In our assessment we have concluded Block 3 represents some of the strongest potential amongst the available blocks. We look forward to the next stage in the application’s review process.”
James Dick P.Geo., P.Eng., Director of the company, is a Qualified Person in accordance with National Instrument 51-101, and has reviewed and accepts the technical disclosure of this press release.
ON BEHALF OF THE BOARD
Robert Dinning, President & CEO
Simba Energy Inc.
For more information, contact:
Suite 1128 – 789 West Pender St.
Vancouver, BC V6C 1H2 Canada
+1 (604) 641-4450
www.simbaenergy.ca
Ethos Consulting Inc.
Investor Relations
1-888-818-1365
www.ethosir.com
About the Company:
Simba Energy is a Vancouver, B.C. based oil and gas exploration company focusing on strategic hydrocarbon opportunities in Africa (Liberia, Ghana and Mali). This region has shown increased promise for development of new hydrocarbon deposits. The Company holds the first and only onshore Hydrocarbon Reconnaissance Permit issued in the country of Liberia for 1,366 sq. kms covering the entire onshore extent of the sedimentary basin known as the Robert-Bassa Basin. In having advanced the license to now warrant acquisition of seismic data Simba has exercised its right to convert this license to a Production Sharing Agreement (PSA) with final approval expected in Q1-11. Simba is the first junior resource company to pursue onshore oil and gas opportunities in the Liberia since the late 1970’s.
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