Simba Essel Energy Inc (SMBZF)

[howestreetbull]

Simba Energy (V.SMB) goes crazy, jumps 60%, on $100m farm-in deal approval
Stockhouse Editorial
1 Comment| 12 hours ago
image: http://www.stockhouse.com/Stockhouse/images/favourites.png

Add to favourites
Stockhouse’s most read bullboard Thursday belonged to a company not often in the spotlight.

Simba Energy (TSXV:SMB, Forum) announced it had received formal approval from the Government of Kenya for a farm-in agreement with the giant multi-national Essel Group, based out of Dubai.

Essel, which has divisions in the world of media, technology, packaging, infrastructure, education, wellness, financial services and resources, will earn a 60% participating interest in Simba’s African plays in return for giving the company full carry through financing of all required exploration.

Essel has confirmed, according to Simba management, that it will invest over $100m USD over the next year to 18 months.

According to Simba, “The JV partners have agreed to a minimum exploration program for Block 2A comprising additional 2D seismic, possible 3D seismic, and drilling on at least two prospects over the next 12 to 18 months, with a minimum estimated cost of $60 million USD,” or almost three times the current market cap of $23.8 million.

Simba stock tripled off $0.025 back in June on news of the deal, but had lost half of those gains in the months since before exploding once again Thursday when the deal was completed, ending the day at $0.08.

It still has some work to do to get back to its 2012 premium of $0.24, but investors on the Stockhouse bullboards appear enthusiastic for more growth in the days ahead.

Tags: OIL & GAS E&P ENERGY

Read more at http://www.stockhouse.com/news/newswire/2015/08/27/simba-energy-v-smb-goes-crazy-jumps-60-on-$100m-farm-deal-approval#1SYBGzL0HLWDtwXO.99