SMB joint venture, Essel Group India News: Simba Energy to grant Essel 60% interest in PSCs
2015-06-08 09:09 ET - News Release
Mr. Robert Dinning reports
SIMBA ENERGY ENTERS IN TO AN AGREEMENT WITH ESSEL GROUP MIDDLE EAST TO INVEST INTO ITS PORTFOLIO OF AFRICAN OIL AND GAS PROJECTS
Simba Energy Inc. has executed an agreement with Essel Group Middle East of Dubai, United Arab Emirates, a subsidiary of Essel Group India, wherein Essel Group will earn a 60-per-cent participating interest in Simba's existing production sharing contracts in Kenya, Chad and Guinea. Simba will be carried on all future exploration costs.
"Simba has successfully obtained production sharing contracts in three countries in Africa and is now ready to proceed to the next level in the development of its portfolio of exploration assets. This includes completion of a seismic program in Kenya, leading up to the drilling of our first exploration well on block 2A, and advancing our exploration programs in Chad and Guinea. We are delighted to enter into this agreement with the Essel Group which will provide Simba with strong financial, technical and marketing support to advance development of our properties," said Robert Dinning, president and chief executive officer.
Essel Group Middle East is a wholly owned subsidiary of Essel Group India, a prominent business conglomerate located in Mumbai, India, that has been operating for over three decades, and has a diverse business presence across the media, entertainment, packaging, infrastructure, precious metals and technology sectors. The current market capitalization of Essel Group India is $12-billion (U.S.). The Essel Group is diversifying further by its entry into the hydrocarbon sector, and its investment into Simba's existing production sharing contracts in Kenya, Chad and Guinea, with farm-in agreements to earn a 60-per-cent participating interest.