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Simba Energy granted Kenya production sharing agreement

Simba Energy (CVE:SMB) said today it has been granted a production sharing contract in Kenya.

Block 2A is in the north-east of the country covers 7,801.72 square kilometres and straddles the Mandera and Anza basins.

“We are delighted in having been awarded this PSC from the Republic of Kenya’s Energy Ministry,” said chief executive Robert Dinning. 

“This is a major achievement for the company and further supports our strategy to pursue underexplored and overlooked onshore basins in Africa.

“While we remain very close to finalising other PSC applications elsewhere, Block 2A’s PSC provides our shareholders a very significant boost in near term upside exploration potential for the company. 

“It has been a lot of work to get to this point so we are extremely pleased.”

Simba said it will immediately begin re-interpretation of all available existing data, while planning a seismic acquisition programme.

Only four wells have been drilled in the Mandera basin with oil shows encountered at 40 to 44 metres. The eleven wells drilled in the Anza Basin, meanwhile, all encountered oil and gas shows.

This is the second new PSC in less than a week for Simba , which is acquiring a 60 percent interest in a production sharing contract for two blocks onshore in the Republic of Guinea’s Bove basin.

It also revealed it has applied for other PSCs in the region.

The PSC interest in the Bove blocks, designated Blocks 1 & 2 and stretching over 12,000 square kilometres, is being acquired from Summa Energy. In return Simba will provide 100 per cent funding of all programme costs in the first year, and 60% of all program costs thereafter.