Simba Energy signs PSC for Chad oil blocks
Pan-African oil and gas explorer, Simba Energy, has announced that it has signed an agreement with the Republic of Chad for 100 per cent interest in three potential oil and gas blocks within the Doba, Doseo and Erdis basins
Both parties have agreed to finalise the first-year work programme and complete the PSC documentation by 20 October 2012, according to Simba Energy.
“Simba is very enthusiastic about the potential of having secured 100 per cent interests in these three concessions. Each block is potentially a company maker in its own right and nicely complements our existing asset portfolio in terms of long-term growth potential,” stated Hassan Hassan, the company’s managing director of operations.
The first exploration phase of all three basins will last five years, with the second phase scheduled to take three years, Simba Energy stated.
The energy company explained that the first stage would require reinterpreting existing 2D seismic, acquisition of at least 750km of new 2D seismic, as well as 400 sq km of 3D seismic to establish various potential drilling opportunities.
The first two blocks, Chari Sud Block I and Chari Sud Block II, lie close to each other and are therefore regarded as one.
The third block, Erdis Block III referred to as the Kufra basin in Libya, has recently supported the company’s hope of the block’s prospectivity following the evaluation of gravity across the basin indicating a site of maximum deposition.
According to Simba Energy, the Republic of Chad has reserves of more than 1.5bn barrels of oil, with more than 400mn barrels of oil having been produced from the country in the last eight years.