For those interested in greenfields African oil exploration, you might want to take a close look into this one.
Yes, I do own this stock, and this is certainly a bit of promotion , but it might be worth your while to take a look at it. anyway.
Here's the story:
The country of Liberia along the west african coast has suffered until just a few years ago from much political unrest ; so much so in fact that outside investment money which would likely be focused on the country's energy potential was found wanting. Like it's neighbors Nigeria and Ghana which have already achieved enormous success in offshore oil exploration, the potential for oil discovery along the Liberian coast is certainly possible if not probable.
Since the political situation has stabilized in Liberia & is much improved, the major international drilling companies have just started moving into the area within the past year or so, and have applied for and received offshore exploration licenses or reached production sharing agreements with the Liberian State Oil Ministry. Very little actual offshore exploration has taken place thusfar, since this is such a new development , but offshore exploration by the majors is being planned starting this year.
Focusing in on Simba, a Canadian junior exploration company, the company got into Liberia early, likely beating out some of the major drillers into that country. Simba holds an exploratory license on a large landside concession which abuts right along the Liberian coast.. A major driller already claims the offshore property directly contingent to Simba's property just the other side of the beach. If memory serves me right , I believe it is either Chevron, or Marathon. Simba, the company, has only performed an exploratory survey of their property so far and has already found what are described as "numerous natural hydrocarbon seeps" right on surface. A more formal exploration program is being planned, by the company and Simba has most recently applied for a formalized production sharing agreement with the Liberian oil ministry which is still pending. In addition, Simba has recently concluded an agreement with the government of Mali to explore for oil/gas on a large concession there.
Yes, this is a very speculative stock with a lot of unknowns attached to it at this point, But with a stock price of $ 0.16/share, and with a reasonable stock float, I'm willing to take on that risk. While the stock price has gone up a bit in the past few weeks, it is still very cheap, imho. This is just an explanation as to why I , as a retail investor, decided to buy shares in Simba, and is not a recommendation on my part for anyone else to buy it. Please do your own due diligence! If you want to know more, here's the company website:
https://www.simbaenergy.ca