Simba Takes on Three Chadian Blocks

Simba Energy has signed a Protocole d’Accord with the government of Chad granting it 100% interests in PSCs for three concessions in the country. The accord covers the prospective oil & gas concessions of Doba, Doseo, and Erdis basins.

By signing the Protocole d’Accord, both parties agree to finalize the first year work program and execute the PSC documentation by October 20.  

The first two (adjacent) concessions cover a total of 10,111 sq km in southern Chad and are referred to as the Chari Sud Block I (6,400 sq km), and the southern 50% of Chari Sud Block II (3,711 sq km). These blocks lie directly south of Griffiths Energy & Glencore International’s DOB, DOI, and Borogop blocks where the nearby Mangara and Badila oil fields are located and further proven reserves are currently under advanced appraisal and production development. Gravity and magnetic surveys across both Chari Sud Blocks I & II, along with existing 2D seismic, indicate the same basin morphology as the producing fields. Pipeline infrastructure skirts the NW corner of Chari Sud Block I. The blocks are located in the southern margins of the Doba and Doseo basins as part of the West and Central African Rift System that extends across central Africa from Nigeria to Kenya.

The third concession, Erdis Block III, covers 15,700 sq km and is located in the southern portion of the Erdis basin (known as the Kufra basin in Libya).  The Erdis basin is one of several adjacent intracratonic basins across North Africa that share sedimentological and geological history and together form a Palaeozic mega-province where significant current production already exists and substantial potential remains underexplored. There are numerous oil discoveries to the north in Libya while recent seismic on Sudan’s Block 14 to the east looks prospective with two wells planned. With sediments to 11,000 meters ensuring maturity is present, gravity across the entire block also indicates the presence of a major deposition center, which enhances major reservoir development.

Simba’s MD of Operations, Hassan Hassan stated, “Simba is very enthusiastic about the potential of having secured 100% interests in these three concessions. Each block is potentially a company maker in its own right and nicely complements our existing asset portfolio in terms of long-term growth potential. We consider this a unique and significant early-in opportunity for the Company and its shareholders.”