In June 2015, EGME signed an agreement with Simba Energy, a Toronto-listed oil and gas exploration company, to take a stake in the company’s five production sharing contracts on assets in Kenya, Guinea, Liberia, Ghana and Chad.

Under the terms of the agreement, EGME will provide funding for exploration costs in return for a 60% participating interest in Simba’s portfolio of African oil and gas prospects.

About The Assets

Kenya – Mandera Basin and Anza Basin, Block 2A

Block 2A is a highly promising 7,802 sq. km prospect in Eastern Kenya. Falling within the confines of Block 2A are sections of two basins, the Mandera and Anza basins, which already have proven petroleum systems.

Block 2A is ideally situated within easy access of Kenya’s two transport corridors, Lamu and Mombasa, enabling EGME to minimize transportation costs and take advantage of significant export opportunities. It will be one of the first operational oil field on the eastern coast of Africa, giving EGME an advantage over companies with assets in Nigeria and other West African nations who are currently exporting oil to Asia and South Asia.

In March 2016, Africa Geophysical Services was mandated to conduct the 2D seismic survey for EGME, which represented an important step ahead of the drilling program scheduled for 2017. The aim of the 2D seismic survey was to identify and evaluate areas with hydrocarbon potential in Block 2A and confi¬rm the previous geophysical studies. The survey area covers approximately 520 LKM of seismic lines and validates anomalies based on the previous FTG and passive seismic surveys. Seismic processing has been completed by Petroleum Geo-Services and seismic interpretation by Xodus Group. The data was further accessed by Sproule and CGG for revalidation.

Based on integration of all available data, the interpretation has identified several potential leads in Block 2A.

Guinea – Bove Basin, Block 1 and 2

EGME has a 60% interest in the Production Sharing Agreement for Blocks 1 and 2 comprising 12,000km onshore in the Republic of Guinea’s Bove basin. After conducting both site investigation and detailed review of available technical data, the company’s geological staff concluded Blocks 1 and 2 represent significant potential for oil and gas in a basin that remains relatively underexplored.

A work program, including planning for commencement of a seismic program, will proceed immediately after receipt of final approval from the Minister of Mines. Simba recently conducted a detailed review of technical data on Blocks 1 and 2 and concluded a significant potential for oil and gas exists. EGME intends to commission operations in Guinea in H1 2017.

Chad – Doba Basin and Doseo Basin, Chari Sud Blocks I and II

In Chad, EGME controls three prospective oil and gas blocks that are situated in the north east of the country, within the Doba, Doseo and Erdis basins. Erdis Block III spans 15,700km and while significant current production already exists, substantial potential remains underexplored.

Chari Sud I and Chari Sud II lie adjacent to one another and can be treated as one block spanning 10,111km. They straddle a northeast to southwest rift valley and the junction of a northwest to southeast rift system. Both Chari Sud blocks lie just south of producing oil fields and gravity and magnetic surveys indicate that they possess the same basin morphology.

Liberia – Roberts Bassa Basin

This license covers approximately 600km of the onshore coastal strip of Liberia lying within the known extent of the Roberts Bassa Basin. This basin was formed as a result of a failed rift and within it we have confirmation of seeps covering a region of 125km. Further 2D seismic testing is scheduled to take place in January 2017.

Ghana – Voltaian Basin

EGME’s prospect in Ghana is situated in the Voltaian basin, covering an area of about 8,700km. The integration of seismic and well data concluded the potential for sizeable gas reserves.