Simba Energy Inc. ("Simba" or the "Company")
(TSXV: SMB; Frankfurt: GDA; OTCQX: SMBZF), the onshore Pan-African oil & gas explorer, is pleased to announce that a
has been signed between Simba Energy Inc. and the Republic of Chad granting the Company 100% interests in the Production Sharing Contracts (PSCs) on three prospective oil & gas concessions in the Doba, Doseo and Erdis basins. By signing the
, both parties agree to finalize the first year work program and execute the PSC documentation by October 20, 2012.
Simba’s Managing Director of Operations, Hassan Hassan stated, “Simba is very enthusiastic about the potential of having secured 100% interests in these three concessions. Each block is potentially a company maker in its own right and nicely complements our existing asset portfolio in terms of long-term growth potential. We consider this a unique and significant early-in opportunity for the Company and its shareholders.”
The first two (adjacent) concessions, comprising a total of 10,111km² in southern Chad are referred to as: “Chari Sud Block I” (6,400km²), and the southern 50% of “Chari Sud Block II” (3,711km²). These blocks lie directly south of Griffiths Energy’s & Glencore International’s DOB, DOI and Borogop blocks where the nearby Mangara and Badila oil fields are located and further proven reserves are currently under advanced appraisal and production development. Gravity and magnetic surveys across both Chari Sud Blocks I & II, along with existing 2D seismic, indicate the same basin morphology as the producing fields. Pipeline infrastructure skirts the NW corner of Chari Sud Block I. The blocks are located in the southern margins of the Doba and Doseo basins as part of the West and Central African Rift System that extends across central Africa from Nigeria to Kenya.
Last week, Glencore International PLC -- the Swiss commodities giant -- signed an agreement with Griffiths Energy to invest up to US$300 million over three years to earn a 25% working interest in the Mangara and Badila oilfields’ development and future production.