Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
My blog:
  • Simba Energy The New Africa Oil? 0 comments
    Jan 18, 2013 2:44 PM

    Investors hunting for the new Africa Oil (CVE:AOI) should take a look at Simba Energy (CVE:SMB), according to the latest update from Edison Research.

    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.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.