Simba Energy Inc.
TSX VENTURE : SMB
FRANKFURT : GDA
OTC Bulletin Board : SMBZF

Simba Energy Inc.

July 27, 2011 17:13 ET

Simba Energy Acquires Controlling Interest of PSC for Blocks 1 & 2, Onshore Guinea

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 27, 2011) - Simba Energy Inc. ("Simba" or the "Company") (TSX VENTURE:SMB) (FRANKFURT:GDA) (OTCBB:SMBZF), announces it has signed an Agreement to acquire a 60% interest in the PSC (Production Sharing Contract) for Blocks 1 & 2 comprising 12,000 square kilometres onshore in the Republic of Guinea's Bove basin.

Under terms of the agreement, Summa Energy is transferring to Simba Energy a 60% interest in the PSC covering Blocks 1 & 2. Simba will provide 100% funding of all program costs in the first year, and 60% of all program costs thereafter.

The finalization of this agreement is subject to receipt of approval from the Republic of Guinea's Minister of Mines and Geology (Le Ministere des Mines et de la Geologie). A work program, including planning for commencement of a seismic program, will proceed immediately after receipt of final approval from the Minister of Mines. Simba recently conducted a detailed review of technical data on Blocks 1 & 2 and concluded a significant potential for oil and gas exists.

Highlights of the potential of the Bove basin include:

  • Migration and communication are demonstrated by the presence of seeps, large accumulations of bio-degraded heavy oil at surface, along with light oil staining in earlier (historical) core and samples
  • A detailed laboratory analysis of samples from two wells carried out in 1989 by Beicip (France) indicated a level of maturity as mature to over mature and a source that is likely oil prone
  • Silurian shales, which are the major source rock in all North African basins, are present
  • The basin has three known reservoir systems with fair to good reservoir parameters in both clastic sediments and carbonates
  • A gravity and magnetometer survey carried out over the entire basin in 1972 by Texas Geophysical Company indicates sediments were present up to a depth of 4,000 metres and identified numerous anomalies, the magnitude of which remain of great interest
  • Most of the basin's wells to date were drilled prior to the 1960's and were too shallow to fully evaluate the section
  • The tectonic style of the Bove basin is such that structures are formed that produce traps capable of pooling large reserves

In an area 100 to 200 kilometres offshore from Blocks 1 & 2 Hyperdynamics Corporation (Houston, TX, NYSE Amex: HDY) recently carried out extensive 2D & 3D seismic surveys and now plans to drill the first of a two well program later this year.

Robert Dinning, President & CEO of Simba said, "This agreement is a major milestone for the Company, and further supports our strategy of pursuing underexplored onshore basins in Africa. The Company also advises it has completed PSC applications with other jurisdictions in the region, and expects to close these very shortly. When completed the Company will possess an exciting portfolio of exploration properties in addition to the PSC for Blocks 1 & 2 just acquired in Guinea".

To view a map detailing the geographic scope of this acquisition, please visit our website or select the following link: http://www.simbaenergy.ca/images/simba_blocks1and2_guinea.pdf

James Dick, P.Geol., P.Eng., Director of the company and Qualified Person in accordance with National Instrument 51-101, has reviewed and approves the technical disclosure in this news release.

Finder's Fees on this acquisition will be paid in accordance with TSX Venture Exchange policy.

About Simba Energy Inc.

Simba Energy is a Vancouver, B.C. based oil and gas exploration company strategically focusing on underexplored overlooked basins in its pursuit of hydrocarbon opportunities in Africa (currently Liberia, Mali, Ghana, Guinea and others). This region has shown increased promise for development of new hydrocarbon deposits. On behalf of its shareholders the Company's Senior Management Team have endeavoured to leverage their expertise and affiliations to pursue, secure and develop strategic assets that demonstrate high potential for drilling and or production operations; and to do so in a manner of best practices and to the betterment of those communities where we work.

ON BEHALF OF THE BOARD

Robert Dinning, President & CEO

We seek safe harbour.

This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the exploration merits of the property and other future plans, objectives or expectations of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating commodity prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as required by applicable securities legislation.

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