Simba Essel Energy Inc SMBZF

OOps the link dont work

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The presentation is on Simbas website. Thanks

POSTED BY FLYBUY on STockhouse.

Thought some of you might found my notes from the Simba presentation in London on thursday useful. please find below;

Listing

They are currently in the process of changing their listing to the ‘main’ Canadian market, and they are also exploring an AIM listing (noting the amount of UK investors in Simba)

Update on Holding

Kenya

This is their premier asset and main focus of attention. IPDS were completed 2 weeks ago and are expecting the results in October. Geochemical test were also completed and these results are due October/November.

E&Y hired as global oil adviser re farm out and Hassan highlighted the conclusion of the farm out process as a key mile stone in company’s history. Have already had ‘Majors’ approach them seeking exclusivity however BoD want to keep it a competitive process. The supporting data room is to be completed in next circa 2 weeks.

Chairman is pushing Hassan to get the ‘best deal ever seen in Kenya’, so are looking to leverage Tullows drilling activities in the area to further bolster interest along with their own work. Suggested a 2 – 3 well carry type deal with around equal share.

Merrill Lynch investor day in October, meeting Kenyan govt in November to discuss drill plan.

2. Liberia

Chevron and Exxon are active off-shore in Liberia, investing tens of millions in this. Simba are waiting for Liberia to agree their petroleum laws. Hassan really likes this asset and this seems to be supported by Majors. Chevron spoke to every individual involved in their oil seep study, plus have indicated an interest in Simba on numerous occasion.

3. Guinea

60% interest purchased for nil (acquired from a Luxemburg company who was about to default on their PSC) but with commitment to pay CA$0.5m over next year to keep contract running. Government approval of acquisition is confirmed and in October they will present their exploration plan to the government.

Believe this is a hidden gem in African oil, with prolific oil seeps found which has affected local well water supplies.

4. Mali

On hold due to political issues. Hassan has high hopes if this is possible to explore, however given issues this asset is on maintenance at c$3k per month.

5. Ghana

Gas play, first company to submit for PSC bid in the country in 28 years, this was swiftly followed by 30 others companies also seeking PSC’s. Hopefully this will progress over next few months.

Finance

Have CA$4m of cash, burn previously CA$30-40k per month, now increasing with activities in Kenya.

Spoke to Hassan after the presentation, he was very welcoming of my questions and clearly passionate about this business. He spent about 5 minutes chatting to me and has left me a happy investor.

ATB

BR