Ratification of simba energy’s production sharing contract in Chad
June 25, 2013, Vancouver, B.C., Canada. Simba Energy Inc. (“Simba” or the “Company”) (TSXV: SMB, Frankfurt: GDA, OTCQX: SMBZF), the pan-African oil & gas explorer, is pleased to announce that the Production Sharing Contract (PSC) between the Government of Chad and Simba Energy has been ratified.
The PSC covers three blocks: Chari Sud Block I (6,217 km²), the southern 50% of Chari Sud Block II (3,711 km²) and Erdis III (15,270 km²).
PSC Ratification
The ratified PSC confirms Simba’s exclusive right and authority to carry out all petroleum exploration, development and production activities in the defined contract areas.
The Chari Sud Blocks lie on Chad’s southern border, just southeast of the Mangara and Badila oil fields where Caracal Energy Inc. (formerly Griffiths Energy) and Glencore’s proven reserves are currently in advanced stages of appraisal and production development.
Erdis III is located in the north of Chad in the south western portion of the Erdis basin, known in Libya as the Kufra basin, where there have been discoveries. Recent gravity across Erdis III indicates the presence of a major depo center on the block with a sediment source to the east and the presence of deep mature source beds supporting the Company’s view of the block’s prospectivity.
As previously announced (in October 2012), 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.
Hassan Hassan, Managing Director of Operations stated, “We’re delighted to have the PSC ratified by the National Assembly and the President of Chad. It enables us to embark on an exciting exploration program on this highly prospective acreage. We have an experienced technical team in place and the exploration program is presently being finalised. An early stage farmout to accelerate this program is one of the options currently under consideration and discussions with interested parties on a potential partnership are ongoing.”
About Simba Energy Inc.
Simba Energy Inc. is an international oil & gas exploration company focused on onshore Pan-African opportunities. The Company holds assets in Kenya, Chad and Guinea.
Simba’s objective is to establish itself as a diversified international developer and producer with a growing oil & gas acreage position with significant upside potential for shareholders.
For further information, please contact: Ph. 604-641-4450; or visit: www.simbaenergy.ca , or email: info@simbaenergy.ca, or Mark Sommer, Toll Free: 1-855-777-4622. Or;
Financial Public Relations (UK), Lionsgate Communications, Jonathan Charles, jcharles@lionsgatecomms.com , +44 (0)7791 892509.
We seek safe harbour.