advertisement

Markets

Canada-listed Simba hires Oman firm in Wajir seismic survey

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

This comes only weeks after the firm raised Sh213 million in a private placement. The cash was intended for use in Kenyan exploration-related activities.

“Simba Energy Inc announces that a contract has been executed with Africa Geophysical Services LLC (AGS), a company incorporated under the laws of Sultanate of Oman, for the purpose of 2D seismic data acquisition and processing on Block 2A Wajir, Kenya,” the firm said in a filing with the TSE.

The exploration firm intends to prepare for drilling in the block later in the year.

“We are pleased to finalise this contract and to commence the field work to obtain the necessary data. This will allow the company to plan a drill programme later this year,” said Simba Energy chief executive Robert Dinning.

The data acquisition will cover an area of 500 square kilometres with the preliminary work starting next month and the full survey the following month.

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

“Simba Africa Rift Limited and its farm-in partner [Indian-owned] Essel Group ME (EGME) have agreed that the 2D seismic data acquisition and processing programme will cover approximately 500 line kilometers of survey and it is expected that preliminary field work and mobilisation will commence in mid to late April, 2016 with the full survey to commence in early May 2016,” said the company in the filing.

It is expected the work will take about 60-75 days to complete to be followed by interpretation of the data, the firm added. The next phase of the exploration will see EGME and Simba Energy Inc jointly acquire an oil drilling rig.

“The drilling process will start as soon as we get a positive seismic result,” said Gagan Goel, the managing director of EGME and vice-chair of Simba Energy Inc.

Simba provides investors with exposure to oil and gas exploration in key areas of Africa with active onshore production sharing contracts in Kenya and Guinea and PSCs under continuing negotiation in Chad, Liberia and Ghana.

Simba focuses on onshore oil and gas potential in areas that are under-developed or not previously exploited.

EGME is part of Essel Group India, which has investments in media, entertainment, packaging, infrastructure, precious metals, energy and technology sectors.

advertisement