Simba Energy raises funds for exploration in Kenya and Guinea

Simba Energy has announced the closure of second and final tranche of the Private Placement which is expected to raise USD $2.97 million.

This is the second private placement after the first tranche in early July raised USD $1.2 million.

The company says it plans to use the proceeds of the Private Placement to fund exploration commitments associated with the Company’s Production Sharing Contracts in Kenya and Guinea, retirement of certain debt, and general working capital purposes.

In June the company reported it had completed of the flight program portion of the FTG (Full Tensor Gradiometry) survey in block 2A where it holds a 100% interest. Final interpretation of the data collected from the FTG survey areas covered in Block 2A was expected before the end of last month.

According to preliminary data from the FTG the company identified 11 high ranking and sizeable anomalies in the portions of the Mandera and Anza basins lying within Simba’s concession.

In January Simba energy announced it had signed an exclusive letter of intent with a private group based in Calgary, Alberta to farm-out up to 40% of Simba’s interest in the Production Sharing Contract (PSC) for Block 2A, onshore Kenya, for a total commitment of US$8.6 million.

From the farm-out Simba said it expected payment of the US$2.0 million and completion of a US$6.6 million work program that included a minimum of 421 line kilometers of 2D seismic that is to be carried out in 2014.

The company that focuses its operations in Africa also has projects in Ghana, Chad, Liberia and Mali.