Simba Essel Energy Inc SMBZF

RE:Financials just released provide some great info!!

[PapaFritz]

PapaFritz wrote:

kmacro, its a repost from 2 wks ago taken straight off sedar Quarterly Nov. 2 (FWIW)

2 wells in Kenya will be drilled next year & 2Dseismics about to start - 2 wells in Guinea FTG & seismics early 2016 - 2 wells in Chad plus FTG &seismics - Liberia on deck in 60 days!!!

On June 5, 2015, the Company entered into an agreement with Essel Group Middle East DMCC, (Essel”) wherein Essel agreed to provide 100% of funding required to carry out an exploration program on all Simba PSCs including the Kenyan PSC. This 100% funding commitment covers all exploration expenditures including FTG and seismic surveys and the drilling of two wells. Essel will earn 60% of future revenues attributable under the PSC, while Simba will retain 40%. This agreement is subject to the approval of the TSX-V.

A definitive agreement and joint operating agreement are about to be executed and the program is subject to approval of the TSX-V and if necessary, shareholders. The government of Kenya has already approved the participation of Essel.
 
Guinea:
The work program for the past year was deferred due to the outbreak of Ebola but this issue appears to be resolved and the Company expects to commence a full FTG program in the first quarter of 2016. The Company has fulfilled its work obligations to date and is in current negotiations with the government of Guinea regarding 100% ownership of the PSC and revising the work program going forward.
The Agreement with the Essel Group gives them the right to earn a 60% interest in the Blocks once they have carried out all necessary exploration work including FTG and seismic surveys, and the completion of two wells. The Company will be carried for 40% with all exploration costs, including local taxes etc, being paid by Essel. It is expected that final approval of Essel participation of 60% will occur at the November meeting with government of Guinea officials.
 
 
Chad:
On June 25, 2013, the Company was advised by the Government that the Production Sharing Contract (PSC) between the Government of Chad and Simba Energy has been ratified. The issuance of the PSCs included a signing bonus which the Company feels is not acceptable. Negotiations are currently underway in Chad to resolve this issue so that the PSCs can be restored and a work program can be instituted.
Due to the uncertainty surrounding this issue, the Company has impaired the costs incurred to date with respect to Chad.
The 100% funding commitment from Essel covers all exploration expenditures including FTG and seismic surveys and the drilling of two wells. Essel will earn 60% of future revenues attributable under the PSCs, while Simba will retain 40%.
 
 
Liberia:
Reconnaissance Permit Extension
Although the Company’s Liberia Hydrocarbon Reconnaissance Permit NR-001 in Liberia was allowed to expire in February, 2011, the application process of applying for the PSC effectively extends the life of the license through this process. The extension of the reconnaissance permit by National Oil Company of Liberia (“NOCAL”) provides both the company and NOCAL additional time to complete the technical review. This process has now been completed. The members of the Board of Directors of NOCAL have been revamped and the new board is behind schedule in its review process.
+
The Company advises that it has received an invitation from NOCAL to meet and finalize details pertaining to the issuance of a PSC. Because of the serious outbreak of Ebola in Liberia, this meeting was deferred during fiscal 2015.
The Company expects to finalize its application with NOCAL in the next 60 days. Once this is resolved and the PSC is issued, Essel with participate in the exploration program in a similar manner with other PSCs as outlined above.