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Simba Energy Aquires Controlling Interest of PSC for Blocks 1 & 2 Onshore Guinea
Simba Energy Aquires Controlling Interest of PSC for Blocks 1 & 2 Onshore Guinea.
About this update from Simba Essel Energy Inc
[{"type":"text","content":"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 samplesA 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 proneSilurian shales, which are the major source rock in all North African basins, are presentThe basin has three known reservoir systems with fair to good reservoir parameters in both clastic sediments and carbonatesA 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 interestMost of the basin’s wells to date were drilled prior to the 1960’s and were too shallow to fully evaluate the sectionThe tectonic style of the Bove basin is such that structures are formed that produce traps capable of pooling large reservesIn an area 100 to 200 kilometres offshore from Blocks 1 & 2 Hyperdynamics Corporation (Houston, TX, NYSE Amex: HDY)...