SMB.v Simba's FTG 2A survey shows five possible drill areas
2014-08-12 06:48 ET - News Release
Mr. Robert Dinning reports
SIMBA'S FTG SURVEY NARROWS FOCUS AT BLOCK 2A KENYA
Simba Energy Inc. is in receipt of Bell Geospace's final report and results from its aerial FTG (full tensor gradiometry) survey analysis and interpretation at its 100-per-cent interest block 2A concession in Kenya.
In summary the results have identified five structural features with independent closures varying in size from 30 kilometres to over 100 kilometres in both the Mandera and Anza basins. Given the FTG results, the company is able to better focus and narrow the area and extent of the now planned 2-D seismic program necessary to further develop drilling locations. The planned seismic program will focus on the three highest-ranking and sizable targets identified by the FTG in both basins.
"The FTG results, in conjunction with correlating data from previous 2-D and passive seismic, drill logs and comparable data at other discoveries, indicate a number of potential drilling targets in block 2A. These results and final report will be made available to our interested farm-in partners. The FTG data will be used to design and constrain the 2-D seismic program, which once acquired, will allow us to determine depths, create volumetric estimates and to define drilling locations all of which is to be published in an updated (NI 51-101-compliant) resource estimate (or CPR -- competent persons report)," remarked Robert Dinning, president and chief executive officer.
The FTG results will inform the design and planning to acquire 2-D seismic over the specific FTG anomalies observed in both basins. An area in the Mandera basin that covers the two sizable primary and one secondary target areas designated as M1 and M3 (prospects) and M2 (lead) is estimated to require plus or minus 175 line kilometres, while an additional 100 kilometres are estimated for the Anza basin to cover leads A1, A4 and A5.
Simba's block 2A concession covers an area of over 7,800 kilometres that overlies portions of two very prospective basins, each with proven hydrocarbon systems: the Mandera basin where the Tarbaj oil seep (just to the north of block 2A's northern boundary) has confirmed marine origin source rocks deeper in the basin in Lower/Mid-Jurassic formations and the Anza basin, one of the largest Tertiary-aged rift basins in the East African Rift system and with a geological setting similar to the South Lokichar basin where Africa Oil and Tullow have recently had significant discoveries.
The strong exploration potential for the target areas in both the Mandera and Anza basins is supported by the following rationale.
Mandera basin:
The Mandera basin offers significant exploration potential with a Jurassic-Triassic section deposited during a period of marine conditions which typically result in larger sedimentary bodies that in turn form larger reservoirs.
Bell Geospace's recent FTG survey identified a northeast trough along the Mandera basin margin parallel to a series of independent closed structures and indicate the margins of the Mandera basin possibly hosting a string of pearls trend play.
Numerous formations offer reservoir rock potential, for example: the coarse-grained Triassic, Mansa Guda sandstone has an estimated 15-per-cent average porosity. Sin rift 1 and 2 sandstones although not penetrated locally have good reservoir potential and have four-way closure on prospect M1.
Shale can be found at many levels as a seal (for example Elgal shale being equivalent to Bokh formation in Ethiopia or Mansa Guda).
Afren is expected to spud the first well for the Khorof prospect in block 1 (Afren 80 per cent), approximately 100 kilometres east northeast of block 2A's primary target areas in the Mandera basin, with results anticipated in the first quarter of 15.
Four-way closure at M1 and M3 prospects is supported by each of: 2-D seismic, passive seismic and FTG.
Planned 2-D seismic program will delineate prospects' depth, potential volumetrics and refine drilling locations and test pearl trend identified by FTG and earlier passive seismic.
Anza basin:
The Anza basin is Tertiary to Cretaceous in age. During the rift 3 period Upper Cretaceous and Lower Tertiary age, activity from the southeast imposed a new tectonic pattern so major northwest-trending faults traversed Kenya and formed the Anza basin, as a deep graben (J. William Kerr et al.).
Block 2A's portion of the Anza basin lies within the proven string of pearls play along the basin's southeastern margins and has been significantly derisked by Africa Oil's recent Sala-1 commercial gas discovery (30 kilometres northwest in block 9).
The pearls trend extends to the Badada prospect of which the northern extent (20 per cent) straddles block 2A's southern boundary (with block 2B) and is analogous with the Sala prospect. Simba's primary target in the Anza basin, A1 (at 44 kilometres) and secondary targets A4/A5 (55 kilometres) lie on this pearls trend with, and between, the Sala and Badada prospects.
Rework of available 2-D seismic and acquisition of an additional plus or minus 100 line kilometres of 2-D seismic will be used to refine depths and allow for reservoir volume estimates as well as better locate potential drilling locations, all of which will support the creation of a resource model and estimate for the Anza basin portion of Simba's (100-per-cent interest) block 2A concession.
Africa Oil has just spudded Sala-2 and it expects Anza gas will be commercialized by end of 2016, preparations to spud Badada-1 in the fourth quarter of 2014 are now under way by block 2B's JV partners: Premier Oil (55 per cent), Taipan Resources (30 per cent) and Tower Resources (15 per cent).
James W. Dick, PGeol, PEng (APEGA), is a qualified person in accordance with National Instrument 51-101, and has reviewed and approves the technical disclosure in this news release.
We seek Safe Harbor.
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