Simba Energy Inc., Vancouver, BC, said it has signed a production sharing contract with Chad for 100% interest in three prospective oil and gas blocks in the Doba, Doseo, and Erdis basins.
The PSC for all three blocks has a first exploration phase of 5 years and a second exploration phase of 3 years (OGJ Online, Sept. 25, 2012). The adjacent Chari Sud Block I and the southern half of Chari Sud Block II total 10,111 sq km in southern Chad, and Erdis Block III covers 15,700 sq km in northern Chad. Simba Energy plans to start work as soon as Chad’s National Assembly ratifies the blocks.
The first exploration phase requires geological and geophysical studies to include processing and reinterpretation of existing 2D seismic, acquisition of at least 750 line-km of new 2D seismic, and shooting of 400 sq km of 3D seismic (or 2D equivalent) to determine the range of possible drilling opportunities for the second phase that requires two exploration wells.