Simba energy signs psc for three oil blocks in republic of chad
October 18, 2012, Vancouver, B.C., Canada. Simba Energy Inc. (“Simba” or the “Company”) (TSXV: SMB; Frankfurt: GDA; OTCQX: SMBZF), is pleased to announce it has signed a Production Sharing Contract (PSC) with the Republic of Chad for 100% interests in three prospective oil & gas blocks within the Doba, Doseo and Erdis basins.
The PSC for all three blocks has a first exploration phase of five years and a second exploration phase of three years. The first exploration phase requires geological and geophysical studies to include processing and reinterpretation of existing 2D seismic, acquisition of at least 750 kilometres of new 2D seismic, as well as 400 km² of 3D seismic (or 2D equivalent) to determine the range of possible drilling opportunities for the second phase that requires two exploration wells.
The first two blocks, Chari Sud Block I and the southern half (50%) of Chari Sud Block II are adjacent to each other and therefore treated as one (10,111 km²). These blocks lie just southeast of the Mangara and Badila oil fields where proven reserves are currently in advanced stages of appraisal and production development. Assessment of earlier gravity and magnetic surveys across both these blocks, along with existing 2D seismic, has confirmed these blocks comprise the same basin morphology as these producing fields. The NE-SW trending Borogrop fault zone crosses both blocks in a manner that divides Chari Sud Block I into both a north and south section while Chari Sud Block II is mainly south of this fault zone. This fault represents the basin axis which is the deepest part and has lateral movement that can enhance the formation of traps while could also be a conduit for migration of hydrocarbons.
The third concession, Erdis Block III, covering 15,700 km², is located in the southwestern portion of the Erdis basin, known as the Kufra basin in Libya, where there has been known discoveries. Currently, seismic acquisition is being carried out and two wells are now planned to the east on Sudan’s Block 14. Recent gravity across Erdis Block III indicates the presence of a major depo center and ties it to a sediment source to the west where along with a deep mature section and this current activity in Sudan, support the Company’s view of the block’s prospectivity.
Hassan Hassan, Managing Director of Operations stated, “We view the exploration potential of these three blocks in Chad as very favorable. Once the National Assembly (of the Republic of Chad) ratifies the PSC we intend to initiate the first phase of exploration field work. Our technical team has begun a thorough assessment and re-processing of data available on Chari Sud I & II to initiate preparations and planning for our first phase of work in the southern concession.”
Simba Director, James Dick, P.Geol., P.Eng., is a Qualified Person in accordance with National Instrument 51-101 and approves the technical disclosure in this news release.
About Simba Energy Inc.
The Company is a Vancouver, BC Canada based oil & gas exploration company focused on onshore Pan-African opportunities. Securing these blocks in Chad adds to the Company’s diversified portfolio of majority or 100% interests in several prospective exploration assets. The Company recently completed and is awaiting final results of the passive seismic survey carried out at its Block 2A in Kenya, where it currently holds a 100% interest. The Company is actively pursuing formal farm-in discussions with a number of interested parties.
Additionally the Company holds a 60% interest in Blocks 1 & 2, onshore Republic of Guinea with current efforts to finalize the first work program with the energy ministry now underway. The Company is also the successful applicant for Block 3 in Mali and has applications pending for onshore blocks in Liberia and Ghana.
We seek safe harbor.
ON BEHALF OF THE BOARD
“Robert Dinning”, President & CEO
For further information contact: Ph. 604-641-4450, or visit: www.simbaenergy.ca or info@simbaenergy.ca, or Mark Sommer, Toll Free: 1-855-777-4622, or;
In the UK, Jonathan Charles, jcharles@lionsgatecomms.com ,
+ 44 (0)779 189 2509.