Simba Essel Energy Inc SMBZF

My Take

[kjs4381]

So this is just my take on things, others may or may not agree.

With the Ajax deal  we would have gotten a carry on one well and had to give up 66% and with the new deal we may give up 40% of the Kenya PSC  before any farmout, but we get a carry on the the 2d seismic a multmillion dollar expense.

Then Simba will be able to look for a much better deal with a major say giving up 50% for a 2 well carry and lets say 10  or more million dollars cash.

So Simba's share after a farmout like I just mentioned would be 30% which is 4% less than what they would have got with the Ajax deal but only a one well carry and less cash.  So to me this new deal sounds better for Simba and it sounds like the new partners are people that want to proceed, let's say  at a much quicker pace than Ajax.

Plus the new partners are going to help Simba move forward with the Guinea PSC in similar fashion.

Apparently they bring with them cash and some expertise.

So we go from having a deal with Ajax that had trouble getting off the ground and basically keeping Simba stalled in it's tracks to a deal  involving the advancement of 2 PSC's.

I can only see this as a positiveand if the deal is finalized in the next few weeks, which I believe it will.  That would show me that the new partners are eager to work together in a prudent and timely way.  Something that all shareholders would be excited to see.

So with money in the bank and at least 2 if not more PSC's moving forward, I think we can all look at 2014 as a breakout year for Simba.

JMHO