Simba Essel Energy Inc SMBZF

Mail from Mark

[malinrob]

For those interested:
Hi Robert,
Thanks for your email and continued support in Simba Energy Inc. www.simbaenergy.ca
Simba is currently considering several options regarding funding which could help to pay for the upcoming FTG survey as well as adding some much needed working capital to the company treasury.
Management is still in discussions with Calgary and has not yet signed the definitive agreement for the farm out in Kenya and Guinea. In the meantime Simba has been in discussions with several groups that could be a fit to farm out the drilling of block 2-A in Kenya. The company is keeping its options open considering Calgary has yet to sign or transfer any funds to Simba.
Simba may be able to proceed with the farming down for the Kenyan block with or without the group from Calgary. If a new group makes Simba an offer to include the FTG, planned 2D seismic, cost-recovery (for expenses already paid for) and ultimately a free carry for at least one completed well, then Simba may choose to proceed with a new group.
However if Calgary does proceed with the proposed transaction, Simba will then be able to farm down the drilling (with Calgary as its 60/40 partner) and the potential new group as the third party partner that may be willing to pay for and complete the drilling of the first well.
I know that is a lot of information to consider but basically Simba must keep its options open right now. If the company can secure some working capital it may relieve some of the external pressures that the company has been experiencing for some time. The Kenyan block has so much upside potential that Simba is willing to be patient for just a little while longer with the hope that it can secure the best farm out or joint venture arrangement for the company and its shareholders alike.
I expect more news and other developments to be released to the public very soon.
Please don’t hesitate to contact me if you have any other questions.
Regards,
Mark
As a response to may email:
Hi Mark,
Thank you very much for encouraging news.
I would have 2 additional questions:
- 1. How is FTG going to be financed? Is there planned a capital raise?
- 2. Is the Calagary group still in play for Kenya (among “various companies”)
Many thanks,
Kind regards,
Robert