Oil and gas junior up 20% on farm-out agreement

Stockhouse Canadian Small and Micro-cap Stock Report for Monday, May 13, 2013 VANCOUVER (SHfn) –

Simba Energy Inc. (TSX: V.SMB, Stock Forum) rose 20% to nine cents on Monday after the Pan-African oil and gas exploration company announced that it has signed a memorandum of understanding with Ajax Exploration Ltd., a privately-owned oil and gas company, to farm-out a 66% interest and operatorship of Block 2A, onshore Kenya. Ajax is to commit to a work program including drilling one well for Simba representing a gross investment of up to US$36.5 million (assuming a well cost of US$25 million in Kenya).

Ridgeline Energy Services Inc. (TSX: V.RLE, Stock Forum) climbed 13.7% to 41.5 cents after the wastewater technology company announced a management agreement with M2 Renewables, an operator of an industrial wastewater treatment facility, of Lake Forrest, California, effective May 10, 2013. The management agreement allows Ridgeline to manage M2R while a definitive agreement to purchase all interests of M2R by Ridgeline is finalized by mid-June, 2013. A required third party audit will be conducted of M2R.

Oceanic Iron Ore Corp. (TSX: V.FEO, Stock Forum) was up 5% to 10.5 cents after the iron developer announced that it has undertaken a preliminary evaluation of the announced changes to the Quebec mining tax regime and has concluded that the proposed changes do not materially affect the economics of its Hopes Advance project, located in Nunavik, based on the assumptions made in the company's pre-feasibility study released last fall. The company's assessment, based on the proposed regime, after applying the additional tax credits associated with processing, suggests that the after tax project net present value (8%) will decrease by approximately 2.7% or $86 million to $3.1 billion, and the resulting decrease of the project's internal rate of return is estimated at 0.2%.

Tuscany International Drilling Inc. (TSX: T.TID, Stock Forum) lost 5.3% to 18 cents after the Canadian-based oilfield services company reported its first quarter 2013 results. The company reported a net loss of $7,100 during the first quarter compared to a break-even net income during the same period in 2012.