Simba Energy Approves Essel Group Transactions, Rebrands to Simba Essel

Simba Energy has announced that at its recent annual general meeting 97.8% of the common shares held by disinterested shareholders voting at the AGM were voted in favour of ratifying, confirming and approving the two agreements the Company had entered into with Essel Group Middle East DMCC in 2015.

Pursuant to the first agreement, dated June 15, 2015, EGME was granted the right to earn a 60% interest in Simba’s production sharing contracts in Kenya, Chad and Guinea by contributing 100% of the funding to carry out an exploration program on the PSCs, which funding would be provided by EGME.

In November 2015, the Company entered into a definitive farmout agreement with EGME on Block 2A in Kenya wherein EGME may earn a 60% participating interest in Block 2A by funding 100% of exploration expenses until the completion of 2 conventional wells on Block 2A.

Given the receipt of shareholder approval, the TSX Venture Exchange has advised that it has no objection to Simba proceeding with the EGME transactions.  In addition, the Company has changed its name to “Simba Essel Energy Inc.” effective on Monday, April 24, 2017.

The Company’s shareholders re-elected the incumbent board of directors, approved the appointment of PricewaterhouseCoopers LLP as the Company’s new auditor, re-approved the Company’s stock option plan and ratified, confirmed and approved the issuance of 600,000 common shares to Hassan Hassan as part of a shares for debt settlement of management fees owed to a corporation controlled by Mr. Hassan.

The Board of Directors are to meet next week to review the seismic programme, and other related data assembled in preparation of a drill program later this year on Block 2A.

Author: OilNews

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