The former has seen its shares spike over 300% in the past year based on farm-out deals in Kenya, where Simba also has significant acreage.
Edison has calculated a risked net asset value of 20 cents a share for Simba, assuming a one-well carry following a farm-in deal.
The figure rises to 36 cents for a two-well transaction and in excess of C$1.40 if the company’s first well hits oil.
The Toronto-listed group, which has a strong UK following, recently completed a passive seismic survey on Block 2A in Kenya.
Following this it opened a data room for potential farminees and has employed Ernst & Young to oversee the process of finding a partner to fund a drilling an initial programme.
“We are encouraged by the aggressive nature of the company – it wants to drill its Kenyan acreage as quickly as possible and we expect significant progress down this road by the end of 2013,” said Edison’s Will Forbes in a note.
“Indeed we believe it is the company’s intention to spud a well in the fourth quarter of 2013, although much work is required to do this.”
Kenya isn’t the group’s only asset: it has significant land holdings Liberia, Guinea, Chad, Ghana and Mali.
“We do not expect the addition of these blocks to be the last – Simba is still hungry to extend its range, but currently has limited cash,” said Forbes.