Simba Corporation has announced it has executed a definitive farm-out agreement with Essel Group Middle East on Block 2A in Kenya. From the agreement, Essel will earn 60 per cent participating interest in Simba’s African portfolio, including Block 2A in Kenya, in exchange for providing Simba a full carry through funding of all required exploration as governed by each concession’s respective Production Sharing Contract until the completion of the drilling of 2 conventional wells on Block 2A.

Simba Corporation has announced it has executed a definitive farm-out agreement with Essel Group Middle East on Block 2A in Kenya. From the agreement, Essel will earn 60 per cent participating interest in Simba’s African portfolio, including Block 2A in Kenya, in exchange for providing Simba a full carry through funding of all required exploration as governed by each concession’s respective Production Sharing Contract until the completion of the drilling of 2 conventional wells on Block 2A.

As a result of Government approval in Kenya, Essel has confirmed their commitment to invest over KES101.8m ($100 million) in Simba’s portfolio in the next 12 to 18 months, including Kenya. Simba and Essel have commenced the planning and scheduling of the next 2D seismic work in support of finalizing locations to drill initial exploration wells at Block 2A, Kenya in 2016.

Mr. Gagan Goel, of the Essel Group Middle East, said in a press statement “we hope our direct participation on the Board of Directors will enhance shareholder interests regarding project development planned on both current and future assets in Africa.”

It is anticipated that the seismic will cover approximately 500 line kilometers. Simba Energy had previously announced private placement financing for gross proceeds up to $2,100,000 which has been submitted for TSXV approval with closing expected in December.

According to Simba Corporation, Robert Dinning, the Definitive agreement will provide Simba with strong financial and technical support as the Company proceeds with its planned seismic program with the objective to drill an exploration well in 2016.
The Essel Group has recently made strides to diversify further with investments into the hydrocarbon resource sector and has committed full support to advance Simba’s African Oil & Gas portfolio through the exploration and appraisal phases in accordance to each governing PSC by way of joint operating agreements on a per asset basis.

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