Simba Energy (SMB.V) announced last week they signed Production Sharing Contracts with the state of Chad for 100% interests in the three blocks they own.
The PSC for all three blocks has a first exploration phase of five years and a second exploration phase of three years. The first phase requires geological and geophysical studies to include processing and reinterpretation of existing 2D seismic, acquisition of at least 750 kilometres of new 2D seismic, as well as 400 km² of 3D seismic (or 2D equivalent) to determine the range of possible drilling opportunities for the second phase that requires two exploration wells.
The national assembly of Chad has to ratify the PSCs (which is expected to happen within 2-3 months) but this obviously shouldn’t be a problem. Simba expects to start the Phase I exploration program shortly after receiving the final nod from the national assembly.
Disclosure: Simba Energy Inc. is a sponsoring company. Please see our disclaimer for current positions.
