Simba Energy starts life as Simba Essel Energy after Essel deals approved

Oil junior Simba Energy (CVE:SMB) has started a new life under the name Simba Essel Energy Inc, retaining the same ticker, after it received approval at its AGM for two agreements struck with  Indian conglomerate Essel in 2015.

The deals will see the oil explorer advance its projects in Kenya, Chad and Guinea.

 Essel Group Middle East DMCC (EGME)- the Dubai based subsidiary , will take a 60% stake in Simba’s African exploration projects as a result.

Two years ago, EGME was granted the right to earn a 60-per-cent interest in Simba’s production-sharing contracts (the PSCs) in Kenya, Chad and Guinea by contributing 100 % of the financing to carry out an exploration program on the PSCs.

In November, 2015, Simba entered a definitive farm out agreement with EGME for its block 2A in Kenya, wherein EGME may earn a 60% interest by financing 100 per cent of exploration expenses until the completion of two conventional wells on block 2A.

Simba Essel said the board will meet this week to review the seismic program and other related data assembled in preparation of a drill program later this year on block 2A.

Earlier this month, Simba revealed it had struck a deal with the national oil company in Liberia, which had doubled the junior’s acreage.

The agreement with NOCAL saw Simba issued with a new  reconnaissance licence, NR-002 which expands the latter’s acreage to 2,961.7 sq km.

Significantly, the newly expanded area connects Simba’s existing onshore concession of 1,366 sq km with the newly acquired 1,595.7 sq km of shallow offshore acreage.

This offshore acreage adjoins blocks LB-14, operated by US major Chevron Corp, as well as LB-13, operated by another titan Exxon Mobile Corp.

Story by ProactiveInvestors