Canada’s Simba Energy is eyeing “significant oil and gas discoveries” as it snaps up an exploration block in Kenya.
The Vancouver-based independent has been handed a production sharing contract for Block 2A in the north-east of the country, it revealed on Wednesday.
The contract, penned with Kenya’s Ministry of Energy, gives Simba access to a 7801-square kilometre area which touches on the Mandera and Anza basins.
“Block 2A also has excellent potential for significant oil and gas discoveries,” Simba wrote in a statement.
“The company will immediately begin re-interpretation of all available existing data, as well as initiate baseline environmental work, to support the design and planning of a new seismic acquisition programme.”
Despite news of the contract, the company’s share price sank over 3% in early trading in Toronto.