Simba Energy has announced it has executed a definitive farm-out agreement with Essel Group Middle East DMCC on Block 2A in Kenya wherein Essel Group Middle East will earn a 60%participating interest in Block 2A by funding 100% of exploration expenses until the completion of the drilling of 2 conventional wells on Block 2A.
The Definitive Agreement follows the formal approval that Simba received from the Government of Kenya in August of the farm-out with Essel Group Middle East.
Additionally, Simba and Essel Group Middle East now intend to finalize a seismic contract to commence work early in 2016 on Block 2A in Kenya which is anticipated to cover approximately 500 line kilometers.
“we hope our direct participation on the Board of Directors will enhance shareholder interests regarding project development planned on both current and future assets in Africa. Our commitment of investing US$100 million will be focused on this effort,” says Essel Group’s Gagan Goel.
Simba Energy CEO says the agreement allows the two partners to proceed with 2D seismic in the block.
“We are delighted to enter into this Definitive Agreement with the Essel Group Middle East which will provide Simba with strong financial, and technical support as the Company proceeds with its planned seismic program with the objective to drill an exploration well in 2016,” said Robert Dinning, President and CEO.