Simba Energy Provides Update
December 18, 2013, Vancouver, B.C., Canada. Simba Energy Inc. (TSXV: SMB, Frankfurt: GDA, OTCQX: SMBZF) (“Simba” or the “Company”) announces that it has terminated negotiations with Ajax Exploration Ltd. (“Ajax”) of a definitive farmout agreement in respect of a farmout of a 66% interest and operatorship of the Company’s 100% owned Block 2A, onshore Kenya. The parties originally executed a memorandum of understanding (as disclosed in the Company’s news release of May 13, 2013) which contemplated that Ajax would carry out additional exploration and drill one exploration well. The parties subsequently attempted to complete negotiations for a definitive farmout agreement but were unable to come to agreement on an acceptable program. Accordingly, both parties have mutually decided to terminate negotiations.
The Company further advises it is currently in advanced negotiations with another party regarding a potential farm-in on two of the assets in the Simba portfolio and anticipates an announcement in the near future.
Simba also announces that, subject to regulatory approval, certain creditors of the Company have agreed to accept an aggregate of 1,887,493 common shares of Simba having a deemed value of $0.06 per share in settlement of debt owed by Simba for past services provided by such creditors.
About Simba
Simba is a Pan‐African oil and gas exploration company with onshore PSCs in Kenya, Guinea and Chad. Simba focuses on onshore oil and gas exploration in areas that are under-developed or not previously exploited.
Simba’s objective is to establish itself as a diversified international explorer and developer with a growing oil and gas acreage position with significant upside potential for shareholders.
ON BEHALF OF THE BOARD
“Robert Dinning”, President & CEO.
For further information, please contact: Mark Sommer, mark@simbaenergy.ca,
Toll Free: 1‐855‐777‐4622, or visit: www.simbaenergy.ca;
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking Information
Certain statements made and information contained herein may constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. These statements relate to future events or the Company’s future performance, business prospects or opportunities. Forward-looking information includes, but are not limited to, statements with respect to the status of negotiations with another party regarding a potential farm-in on two of the assets in the Simba portfolio and the anticipation of an announcement in the near future in respect thereof. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results “may”, “may have”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Although management believes that the assumptions made and the expectations represented by such forward-looking information are reasonable, there can be no assurance that forward-looking information herein will prove to be accurate. Forward-looking information by its nature is based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause Simba’s actual results, events or achievements to be materially different from those anticipated by such forward-looking information. Simba believes that the expectations reflected in the forward-looking information is reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. The forward-looking information involves risks and uncertainties relating to, among other things, the ability of Simba to come to terms with the party with which it is currently negotiating, changes in oil prices, results of exploration and development activities, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government or other regulatory approvals, actual performance of facilities, availability of financing on reasonable terms, availability of third party service providers, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. Actual results may differ materially from those expressed or implied by such forward-looking information. Simba does not intend, and does not assume any obligation, to update the forward-looking information, except as required by applicable laws.