SMB article, bull market runSimba Energy Inc. (SMB, TSX-V)
One of our readers brought this situation up yesterday after Simba Energy (SMB, TSX-V) was halted and then announced it has received formal approval from the government of Kenya for its farm-in agreement with Essel Group, as reported June 8…the market responded enthusiastically to the news after SMB resumed trading very late in yesterday’s session…
Under the terms of the deal, Essel Group Middle East (Dubai) will earn a 60% participating interest in Simba’s African portfolio, including block 2A in Kenya, in exchange for providing Simba a full carry through financing of all required exploration, as governed by each concession’s respective production sharing contract/agreement…as a result of government approval in Kenya, Essel has confirmed its commitment to invest over $100-million (U.S.) in Simba’s portfolio over the next 12 to 18 months, including Kenya…
The 2 companies have commenced the planning and scheduling of the next 2-D seismic work in support of finalizing locations to drill initial exploration wells at block 2A next year…
This 5-year weekly chart from John does a strong overall bullish trend and an important breakout in June above a downsloping flag…Fib. resistance at 9 cents while the rising 50-day moving average (SMA) is currently 7 cents…a lot of shares outstanding (nearly 300 million, which also provides liquidity) but the investment by Essel is key…as always, perform your own due diligence…
SMB traded as high as 10.5 cents this morning and is up half a penny at 8.5 cents as of 10:15 am Pacific…
