Proactive Investors - Run By Investors For Investors

Simba Energy surges on Essel Group ME agreement

Shares in oil junior Simba Energy gushed 22% higher in Toronto as it agreed a farmout with Essel Group Middle East for the Block 2A in Kenya...
Simba Energy surges on Essel Group ME agreement
Essel Group ME will earn a 60% participating interest in the block by funding 100% of exploration until two conventional wells have been completed..

Shares in oil junior Simba Energy (CVE:SMB) gushed 22% higher in Toronto as it agreed a farmout with Essel Group Middle East for the Block 2A in Kenya.

The block spans 7,800 sq km of north eastern Kenya.

Essel Group ME will earn a 60% participating interest in the block by  funding 100% of exploration until two conventional wells have been completed.

In addition, Simba and Essel plan to finalise seismic work to start early in 2016 on Block 2A.

Gagan Goel, of the Essel Group ME was recently appointed vice-chairman of Simba’s board.

Simba president and chief executive Robert Dinning said:  "We are delighted to enter into this definitive agreement with the Essel Group Middle East which 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.

"We are also delighted that Gagan Goel has joined our board of directors and will serve as vice-chairman and assist us in the development of our properties."

The previously announced private placing to raise up to $2.1mln has been submitted for TSXV approval with closing expected early this month, Simba added.

Simba shares added 22.22% to stand at C$0.055. The stock has rallied 57% this year.

View full SMB profile View Profile

Simba Essel Energy Inc Timeline

Related Articles

Chinese ship
October 26 2018
After a capital raise for Green Dragon Gas, G3 shareholders will receive a dividend in specie
Pulse Oil President Drew Cadenhead and Pulse Oil CEO Garth Johnson
May 08 2018
Investors see future windfall as the firm employs modern oil recovery methods to try to unlock oil trapped in two Nisku reefs in Bigoray.
Celtic Sea
September 20 2018
“We expect to see share price appreciation as news of the planning stages indicates the approach of the drilling stages of the appraisal programme.”

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use