Simba Energy has announced that it has increased the size of its previously announced private placement to raise gross proceeds up to $2,150,000 (43 million units at a price of $0.05 per Unit) from the previous $1.7 million.
As disclosed earlier, Dubai-based Essel Group Middle East DMCC will acquire 34,000,000 Units. In addition to Essel, the Company has arranged for additional subscribers, including certain insiders and existing shareholders, to collectively subscribe for up to an additional 9,000,000 Units.
The proceeds from the Private Placement will be used to retire existing debt and for working capital purposes.
Among work in progress is the planned acquisition of 2D Seismic Data Acquisition and Processing program in Kenya’s Block 2A through its subsidiary Company Simba Africa Rift Limited that will cover approximately 500 line km of survey
Essel Group Middle East has recently endeavored to diversify further with investments into the hydrocarbons resource sector and has committed full support to advance Simba’s enviable African Oil & Gas portfolio through the exploration and appraisal phases in accordance to each governing PSC by way of Joint Operating Agreements on a per asset basis.
Simba which focuses on onshore oil and gas potential in areas that are under-developed or not previously exploited has active onshore PSCs in Kenya and Guinea and PSC’s under continuing negotiation in Chad, Liberia and Ghana.