The agreement with NOCAL sees Simba issued with a new reconnaissance license, NR-002 which expands the latter’s acreage to 2,961.7 sq km.
Significantly, the newly expanded area connects Simba’s existing onshore concession of 1,366 sq km with the newly acquired 1,595.7 sq km of shallow offshore acreage.
This offshore acreage adjoins blocks LB-14, operated by US major Chevron Corp, as well as LB-13, operated by another titan Exxon Mobile Corp.
Punkaj Gupta, Simba’s chief executive, told investors: “We are delighted to have finalized this agreement that will allow Simba Energy to begin the next phase of exploration in Liberia.
“The upcoming exploration work will start with an airborne FTG program to be followed by a 2-D seismic survey across the desired area of exploration.
“We are also excited to have been granted the opportunity to investigate and explore the highly prospective shallow offshore area located directly across from and adjacent to block LB-13, operated by Exxon Mobile, and LB-14, operated by Chevron.”
An agreed work programme, includes that the new reconnaissance licence will cover two years and Simba shall submit to the US Environmental Protection Agency an environmental and social impact statement.
There will be an initial phase of 2-D seismic data acquisition, while 3-D acquisition will be carried out as deemed necessary by Simba and as mutually agreed by NOCAL, it added.
In today’s release, Simba also noted that 7.5mln warrants were recently exercised by Simba’s largest independent shareholder for net proceeds of $375,000 to be used for general working capital.
Simba shares fell 7.14% to $0.065.
Source: News Now/Proactive Investors