Simba Energy Inc. (TSXV: SMB) Acquires 2D Seismic Data from Taipan Resources

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Simba Energy Inc. (TSXV: SMB) announced on February 24, 2014, that it has granted permission to Taipan Resources Inc., operator of Block 2B in Kenya, to carry out an additional 24 line kilometers of 2D seismic in an area located in the southwest corner of Simba’s Block 2A just to the north of Taipan’s Pearl prospect. Taipan has already completed 22 line kilometers of 2D seismic in the southwest corner of Block 2A and provided the processed data to Simba.

“Africa Oil’s upcoming well on the Sala prospect in Block 9 and Taipan’s planned Pearl-1 well on the south border of Block 2A strongly suggest that a potential “String of Pearls” trend passes through the south western corner of our block, as both prospects are located at the basin edge where this type of play is found. The Anza basin’s edge passes through the western part of Block 2A”, said Simba Energy CTO & Director James Dick.

Once interpreted, this seismic data will serve to complement Simba’s existing dataset as well as future seismic work contemplated by the company. On January 8, 2014, Simba said it had signed a Letter of Intent (LOI) with a private, Calgary-based investor group to farmout up to 40% of Simba’s interest in the Production Sharing Contract (PSC) for Block 2A for a total commitment of US$8.6 million, in what has been an active 2014 for Simba so far.

The company also announced on January 28, that it had signed an exclusive LOI to farmout its PSC for Blocs 1 & 2 in onshore Guinea, in which the private investor group can earn up to a 45% interest in Simba’s Guinea PSC with a total investment of US$6.5 million.

Simba expects to sign Definitive Agreements for both the Guinea and Kenya LOIs before the end of the first quarter.

Kenya has seen the discovery of oil for the first time in East Africa as Africa Oil (TSXV: AOI), in a JV with Tullow Oil, continues its success with the oil discovery at its Kenyan block 10BB. Investors are looking for other plays that can emulate such success and Simba is clearly well positioned with a big land package and its geologically attractive positioning.

In late 2013, Taipan Resources agreed to farmout a 55% stake in Block 2B to Premier Oil. Premier, at the time, claimed that Block 2B’s current exploration lead inventory is delivering in excess of 500 million barrels of oil.

Edison research firm analyst Will Forbes, in a note following Taipan’s announcement, said Simba’s property was worth US$55 million, based on the price Premier paid to Taipan, thus valuing Simba at 16 Canadian cents per share.

To learn more about Simba Energy, you can view their initiation research report, research bulletins, analyst commentaries and CEO video interview on Simba Energy Investor Hub.

About Simba Energy:

Simba Energy Inc. (TSXV: SMB) is an independent Canadian-based oil and gas exploration company with active onshore PSCs in Kenya, Guinea and Chad. Simba is exploring and developing onshore oil and gas prospects in under explored regions across Africa.

Disclosure

Ubika Research has received compensation from Simba Energy to provide analyst research coverage.

About Ubika Research

Ubika is an investment research and capital market services firm based in Toronto and Vancouver with a proven track record of identifying and launching coverage of high potential small cap stocks at an early stage, thus offering timely market insights. Its specialty is small-cap companies with a market capitalization of <$5 billion.

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Email: vikas@ubikacorp.com

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