Simba Essel Energy Inc SMBZF

RE:The SMB Farm Outdeal

[PapaFritz]

Kenya1 wrote: Simba needed new 2D on the block and this deal secures a seismic shoot and a very nice $2milion back costs. The deal currently values the gross block value at $21.5, but believe me, when the real 2D is shot, and hopefully they will shoot very high resolution 2D, then they should be able to further farm down the block straight after the seismic shoot. They should make haste and get it signed up and approved by the Ministry so they can draw down the back costs. IF Simba can quickly replicate this and get 2D carries in chad and guinea, then a step change in their value can happen, OR they can get taken out. a provisional 'well done' from me

Great post K1. That is how I see things playing out as well. Get all the seismic done and fly some FTG (a la AOI/TLW) then tender offers for drilling! Now all that data plus the IPDS should be enough to get free carry in exchange for drilling 1 or maybe 2 holes and probably more cash. Sounds like a good plan and am pleased the way mgmt. got this deal out so quickly after the ajax bomb dropped. Plus another farm out pending in Guinea which will bring in more cash and eliminate costs for SMB by having partner earn in. well done indeed.