VANCOUVER, British Columbia -- (Business Wire)
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 kmÂ² 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 kmÂ²). 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 kmÂ², 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 Sudanâs 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 Companyâs view of the blockâs
Hassan Hassan, Managing Director of Operations stated, âWe 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.â
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:
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 Companyâs 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.
Simba Energy Inc.
In the UK
Jonathan Charles, +
44 (0)779 189 2509
Source: Simba Energy Inc.
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