Simba is an oil and gas exploration junior focused on onshore frontier areas of Africa. We had an interview with Mr. Mark Sommer, Vice President of Corporate Communications for Simba Energy.
Simba is an oil and gas exploration junior focused on onshore frontier areas of Africa. Its key strength is its first mover advantage and management understanding of the prospectivity of its portfolio. Simba is one of numerous companies active in African oil and gas, the only remaining region with sizeable though risky assets available to outside investors. Its original focus was on West Africa but has been extended to east Africa. Its portfolio comprises onshore PSCs in Kenya and Guinea and potential onshore PSCs in Mali, Liberia and Ghana. As potential is identified, Simba will seek farm-in partners to escalate and progress exploration of the assets towards pre-drill activities leading up to exploration drilling.
Below you can find our interview with Mr. Mark Sommer, Vice President of Corporate Communications for Simba Energy.
Your main focus is obviously on Block 2A in Kenya, in close proximity to the Block where the Africa Oil-Tullow Joint Venture found oil last spring. You’ve recently completed a NI 51 101-compliant resource estimate, outlining Gross Unrisked Prospective Resources of 445M barrels of oil. How important was this Sproule-report for Simba? Does the Sproule report include the potential for the entire Block, or only parts of it?
[blockquote align=”left” variation=”silver”]The Sproule resource estimate was one of the most significant milestones achieved by the company to date and certainly validated why Simba decided to explore for oil in Kenya. The area surveyed covered the entire block 2A.[/blockquote]
You recently announced you engaged Ernst&Young to assist you in your search for a farm-in partner for Block 2A in Kenya. After the recent Africa Oil/Tullow-find, there should be plenty of interest. Do you have a certain timeline in mind?
[blockquote align=”left” variation=”silver”]There is no set timeline however management is confident that the potential of block 2A (Kenya) should be help to secure either joint venture or farmout in the coming months.[/blockquote]
What are you currently doing at Block 2A, and what can we expect over the next 6-12 months?
[blockquote align=”left” variation=”silver”]The passive seismic is complete and extremely encouraging. Drill targets are identified and now Simba will shoot a small 2D or 3D seismic program to hone in on the best target for a well. Simba is now building a data room in Kenya that will help the overall process of securing a farm-out or Joint Venture partner for Block 2A.[/blockquote]
Simba also has projects in Guinea, Liberia, Ghana and Mali. In Liberia you’re waiting for your Production Sharing Contract. When do you think you’ll be awarded the PSC?
The Liberians are undergoing changes to their petroleum laws and policies. Simba is confident that the PSC will be finalized but it is difficult to try and estimate when the closing date will be.
Do you have any plans to explore on your onshore Guinean blocks over the next 6 months?
Yes, in fact exploration in the Republic of Guinea is underway. Simba just completed an oil-seep-survey, hired a country manager and opened a local office. Additional ground work is planned to be followed by a resource estimate, seismic and eventually a full scale drill program.
Do you intend to acquire more land positions in Africa to become one of Africa’s leading oil exploration companies?
[blockquote align=”left” variation=”silver”]Yes, but only if an opportunity presents itself that is a fit for Simba’s business model and can add value to the company.[/blockquote]
What’s your current cash position?
Simba’s working capital remains healthy at approximately $5 Million CAD.
Mr. Mark Sommer
VP Corporate Communications
Simba Energy Inc.
Disclosure: Simba Energy Inc. is a sponsoring company. Please see our disclaimer for current positions.