Simba Energy approves production sharing contract in Chad

Pan-African onshore oil and gas explorer Simba Energy has signed a production sharing contract (PSC) covering three blocks with the Government of Chad.

Chari Sud Block covers approximately 6,217km², Erdis III 15,270km², and the southern half of Chari Sud Block II includes 3,711km².

The company will conduct petroleum exploration, development and production activities in the three blocks as part of the deal.

The PSC declared in October 2012 that the defined contract areas will have a first exploration phase of five years and a second exploration phase of three years.

The Chari Sud Blocks are located on the south-east of the Mangara and Badila oil fields. Caracal Energy and Glencore have proven reserves on these fields, which are currently in the advanced stages of appraisal and production development.

Erdis III is situated on the south-western portion of the Erdis basin. This is expected to have a major depo centre on the block with a sediment source to the east and the presence of deep mature source beds.

The first exploration phase needs geological and geophysical studies, which include processing and reinterpretation of existing 2D seismic and acquisition of around 750km² of new 2D seismic and 400km² of 3D seismic.

Simba Energy managing director of operations Hassan Hassan said that the ratification of the PSC will allow the company an exciting exploration programme on the highly prospective acreage.

"We have an experienced technical team in place and the exploration programme is presently being finalised," he said.

"An early stage farmout to accelerate this programme is one of the options currently under consideration and discussions with interested parties on a potential partnership are ongoing."

Simba Energy has oil and gas assets in Kenya, Chad and Guinea.

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Image: Simba Energy will carry out petroleum exploration, development and production activities in the Chari Sud Blocks and Erdis III block in Chad. Photo: courtesy of Bob Jenkins.