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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.

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