Wajir oil firm owners clear stake sale deal

Shareholders of Canadian-owned Simba Energy, which has interest in Wajir, have approved an agreement entered with Indian conglomerate, Essel, in 2015.

Essel Group Middle East DMCC (EGME)— Essel’s Dubai-based subsidiary — will take a 60 per cent stake in Simba’s African exploration projects as a result.

EGME entered an agreement with Simba to take a 60 per cent interest in Simba’s production-sharing contracts in Kenya, Chad and Guinea by contributing 100 per cent of the funding to carry out an exploration programme on the assets.

“Given the receipt of shareholder approval, the TSX Venture Exchange has advised that it has no objection to Simba proceeding with the EGME transactions,” the company said.  

Following the nod, Simba Energy whose name changes to “Simba Essel Energy Inc” effective, April 24, will together with its new partner focus energies on its assets in Wajir that are due for drilling.

The oil exploration firm, which is listed on the Toronto Stock Exchange (TSE), last year hired an Oman-based company to do the hydrocarbons survey in its Block 2A in Wajir to assess the size and location of oil and gas reserves in the exploration block.

It said the interpretation which is nearly completed will help locate the first of several drilling targets in the block and will help to narrow down the estimated upcoming drilling dates.

It said Simba Energy’s entire team and its partner Essel were encouraged by the preliminary results, adding the data had exceeded its technical team’s expectations.

Simba has oil and gas exploration interests in key areas of Africa with active onshore production sharing contracts in Kenya and Guinea and petroleum sharing contracts under continuing negotiation in Chad, Liberia and Ghana.