Liberia

Simba Essel acquired 90% of International Resource Strategies Liberia Energy, Inc. (“IRSLE”), a private company domiciled in Liberia. IRSLE is the holder of the onshore reconnaissance license for the Roberts and Bassa basins.

The license covers 1,366km² of the onshore coastal strip of Liberia lying within the known extent of the Roberts-Bassa basin. Although there are no published studies of this basin, existing field and geological outcrop data produced by the US Geological Survey indicates that it is connected laterally and down-dip with the West African – Atlantic conjugate continental margin.

In April 2017, Simba Essel executed an agreement with the National Oil Company of Liberia (NOCAL) for a new Hydrocarbon Reconnaissance License NR-002 (HRC). The HRC included Simba Essel’s existing onshore concession area (1,366 km²), as well as new shallow offshore exploration acreage (1,596 km²). This increased Simba Essel’s acreage to 2,962km², connecting the onshore concession to the newly acquired offshore concession.

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Following the grant of the new HRC in April 2017, Simba Essel is planning to implement an agreed work program for the coming [X YEARS] which includes:

• The increased concession area will be governed by a newly issued Hydrocarbon Reconnaissance License NR-002 covering a term of two years
• Simba Essel will submit an Environmental and Social Impact Statement and Plan to the Environmental Protection Agency
• Airborne acquisition, data processing and interpretation of Full Tensor Gravity Gradiometry (FTG), with detailed report of evaluation and results, will be submitted for NOCAL’s review
• An initial phase of 2D seismic data acquisition
• 3D acquisition as deemed necessary by Simba Essel and as mutually agreed by NOCAL

Under the terms of the HRC, once the initial work program has been completed, Simba Essel can apply to convert the existing HRC to a formal PSC. All exploration costs of the reconnaissance program will be recoverable.

In 2010 James Dick, a Director of Simba Essel, supervised an exploration team that carried out an extensive oil seep survey over the most prospective portion of the onshore reconnaissance licensed area.

The initial focus of the oil seep survey concentrated on two areas, the Marshall City area where oil seeps have been reported for several years, and the airport area where there was no existing information.

After careful evaluation, Mr. Dick concluded that the high volatile oil associated with the seeps was a positive indication of mature oil. His team found that the basin is either deep enough to have temperature and pressure levels capable of maturation or migration has come from offshore sediments.

Oil seeps were found on all traverses (15 in total) covering an area of 125km². Each sighting had numerous seeps in close proximity. Samples of water and soil were taken at each sighting and from pits offsetting seeps at the best seep in each area. The hydrocarbon present is very volatile, disappears very quickly, was only seen entering fresh pits, and is a positive indication of mature oil.