Canadian firm Simba Energy seeks Sh214m for oil exploration in Mandera

By: IMMACULATE KARAMBU

Simba Energy, a Canadian oil and gas exploration firm, has announced plans to raise Sh214 million ($2.1 million) to fund exploration work in Mandera.

In its latest update, Simba Energy says it will raise the money through a private placement share offer that will see it sell 42 million shares at Sh7.65 ($0.075) each.

“The company is pleased to announce a financing by way of private placement that contemplates issuing up to 42 million units for gross proceeds of up to $2.1 million,” said Robert Dinning, Simba’s president and chief executive officer in a statement.

In addition to the financing plans, Simba has also appointed Gagan Goel, currently managing director of Dubai-based Essel Group as its director and vice-chairman.

The Canadian company plans to enter into a joint operating agreement with the Essel Group to advance its exploration operations in Africa, especially in the exploration and appraisal phases.

EXPLORE MANDERA BASIN

Simba Energy has exploration interest in block 2A located in the Mandera basin.

The firm is expected to carry out seismic surveys to establish potential sites for commencement of drilling on the block.

In 2014, Simba raised Sh240 million through private placement to finance operations on the Mandera block and its other licences on the continent.

In April 2015, the firm also sold 15 million shares through a similar arrangement to raise Sh41.4 million to fund its operations.

The oil and gas company had 2014 indicated that it would sell 40 per cent of its licence on block 2A ,where it controls 100 per cent interest, at a price of Sh2 billion.

“The company has reopened its data room and with the assistance of Ernst & Young’s corporate finance oil and gas division in London, has resumed discussions with numerous parties interested in participating in the development of Block 2A in Kenya,” said Simba in a statement.

According to the oil explorer, the Mandera basin has the same features as the neighbouring blocks where other oil and gas firms are already drilling, thereby increasing the chance of finding oil deposits in the area.

SOURCE: DAILY NATION