advertisement

Markets

Canada’s Simba Energy to start seismic surveys in northern Kenya

Technicians work at the Ngamia 1 oil rig in Turkana county. Simba Energy Inc has raised Sh213 million for use in Kenyan exploration activities. PHOTO | FILE
Technicians work at the Ngamia 1 oil rig in Turkana county. Simba Energy Inc has raised Sh213 million for use in Kenyan exploration activities. PHOTO | FILE 

Canadian-owned Simba Energy plans to begin seismic surveys in Wajir, northern Kenya, in two weeks to assess the size and location of oil and gas reserves in its exploration block.

Simba Energy chief executive officer Punkaj Gupta said on Wednesday the seismic survey would pave the way for drilling later this year.

The oil exploration firm, which is listed on the Toronto Stock Exchange (TSE), recently hired an Oman-based company to do the hydrocarbons survey in its Block 2A in Wajir.

“Simba Energy is at an extremely exciting stage of its development, with preparations for the 2-D seismic survey now complete on the block 2-A asset in Kenya, and the shooting of lines about to commence in the next 10 to 15 days, in preparation for the commencement of a drill programme later in 2016. I look forward to updating shareholders of our progress in due course,” said Simba Energy chief executive officer Punkaj Gupta at the company’s Annual General Meeting, (AGM) held this week.

Oil and gas explorers use seismic surveys to produce detailed images of the various rock types and their location beneath the earth’s surface and to determine the location and size of oil and gas reservoirs.

The Canadian firm recently raised Sh213 million in a private placement for use in the exploration activities in Kenya. The data acquisition will cover an area of 500 square kilometres.

The work is to be done through its subsidiary Simba Africa Rift Limited.

It is expected the work will take about 60-75 days to complete to be followed by interpretation of the data.

Simba has oil and gas exploration interests in key areas of Africa with active onshore production sharing contracts in Kenya and Guinea and petroleum sharing contracts under continuing negotiation in Chad, Liberia and Ghana.

advertisement