Simba has signed an Agreement to acquire a 60% interest in the PSC (Production Sharing Contract) for Blocks 1 & 2 comprising 12,000 square kilometers onshore in the Republic of Guinea's Bove basin.
Under terms of the agreement, Summa Energy is transferring to Simba Energy a 60% interest in the PSC covering Blocks 1 & 2. Simba will provide 100% funding of all program costs in the first year, and 60% of all program costs thereafter.
The finalization of this agreement is subject to receipt of approval from the Republic of Guinea's Minister of Mines and Geology (Le Ministere des Mines et de la Geologie). A work program, including planning for commencement of a seismic program, will proceed immediately after receipt of final approval from the Minister of Mines. Simba recently conducted a detailed review of technical data on Blocks 1 & 2 and concluded a significant potential for oil and gas exists.
Highlights of the potential of the Bove basin include:
In an area 100 to 200 kilometers offshore from Blocks 1 & 2 Hyperdynamics recently carried out extensive 2D & 3D seismic surveys and now plans to drill the first of a two well program later this year.
Robert Dinning, President & CEO of Simba said, "This agreement is a major milestone for the Company, and further supports our strategy of pursuing underexplored onshore basins in Africa. The Company also advises it has completed PSC applications with other jurisdictions in the region, and expects to close these very shortly. When completed the Company will possess an exciting portfolio of exploration properties in addition to the PSC for Blocks 1 & 2 just acquired in Guinea."
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