Ubika Research

Simba Energy Inc.

Simba Energy Inc.

April 23, 2012 11:48 ET

Initiating Research Coverage on Simba Energy Inc: Junior Explorer With Highly Prospective Pan-African Frontier Exploration Acreage; Exploration Success Could Unlock Significant Value

TORONTO, ONTARIO--(Marketwire - April 23, 2012) - Ubika Research has initiated coverage on a Vancouver-based Oil & Gas Junior that continues to amass lands and Production Sharing Contracts (PSCs) in Africa, convinced that yesterday's so called "Dark Continent" will be the source of tomorrow's light in a sector that continues in its downward spiral of diminishing resources. Ubika Research has calculated a Ubika Model Price (UMP) of $0.81 with an undervalued rating on the stock of Simba Energy Inc (TSX VENTURE:SMB) (OTCBB:SMBZF).

The Initiation Report is available here: http://www.smallcappower.com/companies/simba-energy-inc/research-reports.html

The strategy of Simba Energy Inc. (TSX VENTURE:SMB) (OTCBB:SMBZF), says Ubika Research Senior Analyst Vikas Ranjan "is to assemble highly prospective oil and gas exploration assets in relatively stable and business-friendly African countries and bring in financially strong partners to explore and develop the assets to production… "

In March 2012, another oil company, Tullow Oil, announced some welcome news for Simba. Its well in Turkana, an arid region in northwest Kenya, had turned up oil and it plans four exploratory wells in the area this year. Ubika points out that Simba also has amassed land packages in Kenya.

Ubika's Initiation Report points out that in the O&G industry, there is a unanimous feeling that Africa's reserves could be the answer to the current market uncertainty. "Although Africa may not be able to compete with the Middle East in terms of proven reserves, it is emerging as the new region with capacity to keep markets tranquil," says the report.

"A good analogy for Simba could be a landowner who owns prime real estate in major cities and can easily attract strong attention from prospective developers," says Vikas Ranjan, Ubika Managing Director, Senior Analyst, and lead researcher of the report. "We believe that this is a company with significant values waiting to be unlocked."

The report points out that its business model is straightforward- to discover prospective onshore projects and seek farm-in partners to carry these assets to exploration and development (E&D). "Onshore projects are less expensive and easily accessible compared with offshore fields," states Mr Ranjan. "The acquisition of onshore fields and farm-in agreements greatly reduces the cost and risk involved."

The company's portfolio consists of Production Sharing Contracts (PSCs) PSCs in Kenya and Guinea and Mali, and on advanced negotiations for closing Production Sharing Contracts in Liberia and Ghana.

In August 2011, Kenya's Ministry of Energy awarded Simba a PSC for Block 2A, a 7,802 sq. km acreage that covers the southern end of the Mandera Basin and extends into Anza Basin in the southwest. A month earlier, Simba acquired a 60% interest in the PSCs for two onshore areas in the Republic of Guinea, namely Blocks 1 and 2, covering 12,000 sq. km and located in the highly prospective Bove basin. In Liberia, Simba owns a Hydrocarbon Reconnaissance Permit and has applied for a PSC; in Mali, it has formally earned the PSC for Block 3 and completed the technical review process by year-end 2011; and in Ghana, Simba is finalizing a PSC covering 8,700 sq. km in the Voltaian Basin.

Ubika's report is available for download at http://www.smallcappower.com/companies/simba-energy-inc/research-reports.html.

Ubika is an investment research and capital market services firm based in Toronto and Vancouver with a proven track record of identifying and launching coverage of high potential small and mid cap stocks at an early stage, thus offering timely market insights. Its specialty is small-cap companies with a market capitalization of <$1 billion.

DISCLAIMER: Ubika Research has received compensation from Simba Energy Inc. for providing analyst research coverage. Except for the historical information presented in its reports, matters discussed in these documents contain forward-looking statements that are subject to certain risks and uncertainties. Hence, actual results could differ materially from any future results, performance or achievements expressed or implied in the reports.

Ubika Research and www.smallcappower.com (are both divisions of Ubika Corporation), and are not registered with any financial or securities regulatory authority, and do not provide nor claim to provide investment advice or recommendations in its reports. Readers are encouraged to talk to their own investment advisor before making specific investment decisions. Our full disclosure is available at http://smallcappower.com/disclosure.aspx

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