Here's what Mark Sommer said in reply to an email inquiry about the status of Kenyan blocks and financial condition of the company.
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12/17/2014
Hi xxxxx,
Thanks for your email and continued support in Simba Energy Inc. www.simbaenergy.ca
The company is still working diligently towards completing a farm-in (joint-venture) for Kenya and remains positive and encouraged that a deal can be reached very soon. If not before the end of the year, I am confident that a deal will be reached early in 2015.
There are currently several serious groups at the table in what I would categorize as “late-stage” negotiations for farming-in opportunities with Simba Energy. Simba’s management understands how valuable the Kenya acreage is and with the recently acquired FTG survey the geology has been proven to be highly prospective. This has also been confirmed by the independent resource estimate completed by Sproule two years ago!
With regards to the recent drop in share value, I believe that some of the pressure on Simba’s stock, that contributed to the most recent decline in price, is associated with tax-loss season in Canada.
Then there is the price of oil which has dropped from $100.+/barrel to $56./barrel in just a few short months. This has had more of an impact on Simba’s share value than anything. This is the largest drop in Crude Oil in the shortest amount of time, in the history of OPEC.
Otherwise there really is no material reason for the selling from a corporate stand point. None whatsoever.
The company’s cash balance from the most recent financial statements (ending Sept. 2014) was approximately $200,000.CAD
There are several options at the company’s disposal as far as funding the planned, future 2D seismic survey. One of which will be to have the farm in partner cover the costs or at least share the costs on a pro-rated basis, once a deal has been struck. For now the company is planning the program and accepting bids from vendors, there will be more news and information regarding the 2D seismic in the New Year.
There really are no issues with Simba’s Kenyan PSC. The company has completed its work commitments for the first 3 year exploration term and are in good standing with NOCK and the Kenyan government. (Vanoil unfortunately was in Kenya for 7 years + and was unable to drill its first exploration well.)
It is indeed very frustrating to see this recent drop in value, however the company will remain steadfast and focused until the farm out is completed and announced.
Please don’t hesitate to contact me if you have any other questions.
Best regards,
Mark
AI
