Simba Energy Aquires Controlling Interest of PSC for Blocks 1 & 2 Onshore Guinea
July 27, 2011, Vancouver, B.C., Canada. Simba Energy Inc. (“Simba” or the “Company”) (TSXV: SMB, Frankfurt: GDA, OTCCBB: SMBZF), announces it has signed an Agreement to acquire a 60% interest in the PSC (Production Sharing Contract) for Blocks 1 & 2 comprising 12,000 square kilometres onshore in the Republic of Guinea’s Bove basin.
Under terms of the agreement, Summa Energy is transferring to Simba Energy a 60% interest in the PSC covering Blocks 1 & 2. Simba will provide 100% funding of all program costs in the first year, and 60% of all program costs thereafter.
The finalization of this agreement is subject to receipt of approval from the Republic of Guinea’s Minister of Mines and Geology (Le Ministere des Mines et de la Geologie). A work program, including planning for commencement of a seismic program, will proceed immediately after receipt of final approval from the Minister of Mines. Simba recently conducted a detailed review of technical data on Blocks 1 & 2 and concluded a significant potential for oil and gas exists.
Highlights of the potential of the Bove basin include:
- Migration and communication are demonstrated by the presence of seeps, large accumulations of bio-degraded heavy oil at surface, along with light oil staining in earlier (historical) core and samples
- A detailed laboratory analysis of samples from two wells carried out in 1989 by Beicip (France) indicated a level of maturity as mature to over mature and a source that is likely oil prone
- Silurian shales, which are the major source rock in all North African basins, are present
- The basin has three known reservoir systems with fair to good reservoir parameters in both clastic sediments and carbonates
- A gravity and magnetometer survey carried out over the entire basin in 1972 by Texas Geophysical Company indicates sediments were present up to a depth of 4,000 metres and identified numerous anomalies, the magnitude of which remain of great interest
- Most of the basin’s wells to date were drilled prior to the 1960’s and were too shallow to fully evaluate the section
- The tectonic style of the Bove basin is such that structures are formed that produce traps capable of pooling large reserves
In an area 100 to 200 kilometres offshore from Blocks 1 & 2 Hyperdynamics Corporation (Houston, TX, NYSE Amex: HDY) recently carried out extensive 2D & 3D seismic surveys and now plans to drill the first of a two well program later this year.
Robert Dinning, President & CEO of Simba said, “This agreement is a major milestone for the Company, and further supports our strategy of pursuing underexplored onshore basins in Africa. The Company also advises it has completed PSC applications with other jurisdictions in the region, and expects to close these very shortly. When completed the Company will possess an exciting portfolio of exploration properties in addition to the PSC for Blocks 1 & 2 just acquired in Guinea”.
To view a map detailing the geographic scope of this acquisition, please visit our website or select the following link: http://www.simbaenergy.ca/images/simba_blocks1and2_guinea.pdf
James Duck, P.Geol., P.Eng., Director of the company and Qualified Person in accordance with National Instrument 51-101, has reviewed and approves the technical disclosure in this news release.