Simba Energy receives final approval for 60% interest in blocks 1 & 2 onshore Guinea
May 24, 2012, Vancouver, B.C., Canada. Simba Energy Inc. (“Simba” or the”Company”) (TSXV: SMB, Frankfurt: GDA, OTCQX: SMBZF), is pleased to announce that it has received final approval for 60% of the Production Sharing Contract (PSC) in blocks 1 & 2, onshore Guinea from the Republic of Guinea’s Minister of Mines and Geology (Le Ministere des Mines et de la Geologie).
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The two blocks total 12,000 sq.km onshore in the Republic of Guinea’s Bove basin, which has extensive presence of surface oil seeps and three known reservoir systems with fair to good reservoir parameters in both clastic sediments and carbonates. It is Management’s view that blocks 1 & 2 possess significant hydrocarbon exploration potential that supports taking an aggressive near-term exploration approach.
The following points highlight the exploration potential for Blocks 1 & 2:
- Migration and communication are demonstrated by the presence of abundant seeps, large accumulations of bio-degraded heavy oil at surface, along with light oil staining in earlier (historical) core and samples.
- Laboratory analysis carried out in 1989 on samples from two wells Beicip (France) indicated a level of maturity as “mature to over mature” and a source that is likely oil prone.
- Silurian shales, which are the major source rock in all North African basins, are present.
- The basin has three known reservoir systems with fair to good reservoir parameters in both clastic sediments and carbonates.
- A gravity and magnetometer survey carried out over the entire basin in 1972 by Texas Geophysical Company indicates sediments were present up to a depth of 4,000 metres and identified numerous anomalies, the magnitude of which remain of great interest.
- Most of the basin’s wells were drilled prior to the 1960’s and were too shallow to fully evaluate the section.
- The tectonic style of the Bove basin is conducive to the formation of structures that produce traps capable of pooling large reserves.
Simba is set to provide 100% funding of all program costs in the first year, and 60% of all program costs thereafter.
Robert Dinning, President & CEO remarks, “We are pleased to have received formal approval of this transaction, including the right to be the operator, and can now proceed with the investment necessary to explore an asset that we believe has great exploration potential. Simba is the first Canadian company to explore for oil and gas in onshore Guinea. We will initiate the seep survey in the near future covering a number of specific target areas with known seeps.”
James Dick, P.Geol.,P.Eng., Director of the Company and Qualified Person in accordance with National Instrument 51-101, has reviewed and approves the technical disclosure in this news release.
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 Kenya, Guinea, Liberia, Mali and Ghana). These regions have shown increased promise for the development of new hydrocarbon deposits. The Company’s senior management team aims to leverage its 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 it operates.
ON BEHALF OF THE BOARD
“Robert Dinning”, President & CEO
For further information contact Simba Energy Inc., at 604-641-4450, or visit: www.simbaenergy.ca , or info@simbaenergy.ca , or Mark Sommer, Toll Free: 1-855-777-4622.
Financial Public Relations (UK), Lionsgate Communications, Jonathan Charles, jcharles@lionsgatecomms.com, or +44 (0)7791 892509.
We seek safe harbour.