Essel Group awards Kenya energy contract
DUBAI, March 27, 2016
Essel Group Middle East (EGME) said it has joined hands with Simba Energy to award a contract for a 2D seismic data survey on Block 2A, in Kenya.
The survey will be conducted by Africa Geophysical Services (AGS), and is intended to provide 2D seismic data acquisition and processing covering an approximately 500 km survey line.
The preliminary field work is likely to start by the end of April, with the full survey to take off in early May this year, said Simba Africa Rift Limited, which awarded the contract.
The work will take just over two months to complete, and will be followed by full analysis of the data. The survey represents an important preparatory step ahead of a drill program for later in 2016.
Gagan Goel, the managing director, EGME and vice-chairman of Simba, said: "We look forward to completing the 2D seismic survey, and securing positive seismic results, with a view to starting the drilling process."
"We believe this next phase of work will reveal excellent upside potential for exploratory drilling across of number of high quality Kenyan prospects," he added.
In December last year, Simba had entered into a definitive farm out agreement with EGME on Block 2A in Kenya. Under the deal, EGME will earn a 60 participating interest in Block 2A by funding 100 per cent of exploration expenses until the completion of the drilling of two conventional wells on Block 2A.
The definitive agreement followed the 27 August 2015 formal approval Simba received from the Government of Kenya of the farm out with Egme.
As part of the definitive farm out agreement, EGME became the largest single shareholder in Simba, for the purposes of protecting shareholder interests on planned and future project developments with a total capital budget in the region of $100 million.-TradeArabia News Service