Simba Energy Inc. announced that an agreement has been reached between Simba Energy Inc. and the Republic of Chad granting the company 100% interests in the production-sharing contracts (PSCs) on three prospective oil and gas concessions in the Doba, Doseo, and Erdis basins.

By signing the Protocole d’Accord, both parties agree to finalize the first year work program and execute the PSC documentation by Oct. 20.

The first two (adjacent) concessions, comprising a total of 10,111 sq km (3,904 sq miles) in southern Chad are referred to as: Chari Sud Block I (6,400 sq km, or 2,471 sq miles), and the southern 50% of Chari Sud Block II (3,711 sq km, or 1,433 sq miles), according to a news release. These blocks lie directly south of Griffiths Energy’s & Glencore International’s DOB, DOI, and Borogop blocks where the nearby Mangara and Badila oil fields are located and further proven reserves are currently under advanced appraisal and production development.

Gravity and magnetic surveys across both Chari Sud Blocks I & II, along with existing 2D seismic, indicate the same basin morphology as the producing fields, the release stated. Pipeline infrastructure skirts the NW corner of Chari Sud Block I. The blocks are located in the southern margins of the Doba and Doseo basins as part of the West and Central African Rift System that extends across central Africa from Nigeria to Kenya.

The third concession, Erdis Block III, totaling 15,700 sq km (6,062 sq miles), is located in the southern portion of the Erdis basin (known as the Kufra basin in Libya) which covers approximately 400,000 sq km(154,440 sq miles) extending across NE Chad, NW Sudan, and SE Libya. The Erdis basin is one of several adjacent intracratonic basins across North Africa that share sedimentological and geological history and together form a Palaeozic mega-province where significant current production already exists and substantial potential remains underexplored.

There are numerous oil discoveries to the north in Libya while recent seismic on Sudan’s Block 14 to the east looks prospective with two wells planned. With sediments to 11,000 m (36,089 ft) ensuring maturity is present, gravity across the entire block also indicates the presence of a major deposition center, which enhances major reservoir development.