Simba Energy has announced that it has arranged, subject to receipt of regulatory approval, a private placement financing involving the sale to Dubai-based Essel Group Middle East DMCC to raise gross proceeds of approximately $1,700,000.
According to Simba Energy President Robert Dining proceeds from the Private Placement will be used for working capital for the Company with the company planning to close the Private Placement within 21 days after TSXV approval.
Earlier this year Simba Energy announced it has closed a non-brokered private placement to raise gross proceeds of $2,100,749.00 through the issue of shares to fund exploration commitments associated with the Company’s Production Sharing Contracts in Kenya, and general working capital purposes.
Meanwhile Simba has also announced that Robert Dinning has resigned as CEO of the Company effective immediately and that Mr. Punkaj Gupta (a member of the Board of Directors of the Company and the CEO of Essel Group Middle East) has been appointed as the Company’s new CEO. Dinning will continue to act as President and a director of the Company.
“We are very pleased to have Punkaj Gupta join our management team and take a leadership role. We believe that his appointment will assist us significantly with the development of our assets in various locations in Africa,” said Robert Dinning, President.
“We welcome the appointment of Punkaj Gupta as CEO of Simba. I believe that his appointment represents a step towards both Simba and Essel Group Middle East moving forward on a growth path and aligning their strategies at the grassroots level”, said Gagan Goel, Vice-Chairman of Simba and Managing Director of Essel Group Middle East.
The new CEO has his work cut out for him including overseeing 2D Seismic Data Acquisition and Processing program in Kenya’s Block 2A that will cover approximately 500 line km of survey with preliminary field work and mobilization set to commence in mid to late April, 2016 with the full survey to commence in early May 2016.
Essel Group Middle East has advised that it has recently endeavored to diversify further with investments into the hydrocarbons resource sector and that it has committed its full support to advance Simba’s African oil and gas portfolio through the exploration and appraisal phases in accordance with each governing production sharing contract by way of joint operating agreements on a per asset basis.
Simba Energy has active onshore production sharing contracts (PSCs) in Kenya and Guinea and PSCs under continuing negotiation in Chad, Liberia and Ghana.