SMB Simba Essel Energy Inc

Ubika Research has initiated coverage on a Vancouver-based Oil & Gas Junior that
continues to amass lands and Production Sharing Contracts (PSCs) in Africa,
convinced that yesterday's so called "Dark Continent" will be the source of
tomorrow's light in a sector that continues in its downward spiral of
diminishing resources. Ubika Research has calculated a Ubika Model Price (UMP)
of $0.81 with an undervalued rating on the stock of Simba Energy Inc (TSX
VENTURE:SMB) (OTCBB:SMBZF). 


The Initiation Report is available here:
http://www.smallcappower.com/companies/simba-energy-inc/research-reports.html


The strategy of Simba Energy Inc. (TSX VENTURE:SMB) (OTCBB:SMBZF), says Ubika
Research Senior Analyst Vikas Ranjan "is to assemble highly prospective oil and
gas exploration assets in relatively stable and business-friendly African
countries and bring in financially strong partners to explore and develop the
assets to production... " 


In March 2012, another oil company, Tullow Oil, announced some welcome news for
Simba. Its well in Turkana, an arid region in northwest Kenya, had turned up oil
and it plans four exploratory wells in the area this year. Ubika points out that
Simba also has amassed land packages in Kenya.


Ubika's Initiation Report points out that in the O&G industry, there is a
unanimous feeling that Africa's reserves could be the answer to the current
market uncertainty. "Although Africa may not be able to compete with the Middle
East in terms of proven reserves, it is emerging as the new region with capacity
to keep markets tranquil," says the report.


"A good analogy for Simba could be a landowner who owns prime real estate in
major cities and can easily attract strong attention from prospective
developers," says Vikas Ranjan, Ubika Managing Director, Senior Analyst, and
lead researcher of the report. "We believe that this is a company with
significant values waiting to be unlocked."


The report points out that its business model is straightforward- to discover
prospective onshore projects and seek farm-in partners to carry these assets to
exploration and development (E&D). "Onshore projects are less expensive and
easily accessible compared with offshore fields," states Mr Ranjan. "The
acquisition of onshore fields and farm-in agreements greatly reduces the cost
and risk involved."


The company's portfolio consists of Production Sharing Contracts (PSCs) PSCs in
Kenya and Guinea and Mali, and on advanced negotiations for closing Production
Sharing Contracts in Liberia and Ghana. 


In August 2011, Kenya's Ministry of Energy awarded Simba a PSC for Block 2A, a
7,802 sq. km acreage that covers the southern end of the Mandera Basin and
extends into Anza Basin in the southwest. A month earlier, Simba acquired a 60%
interest in the PSCs for two onshore areas in the Republic of Guinea, namely
Blocks 1 and 2, covering 12,000 sq. km and located in the highly prospective
Bove basin. In Liberia, Simba owns a Hydrocarbon Reconnaissance Permit and has
applied for a PSC; in Mali, it has formally earned the PSC for Block 3 and
completed the technical review process by year-end 2011; and in Ghana, Simba is
finalizing a PSC covering 8,700 sq. km in the Voltaian Basin.


Ubika's report is available for download at
http://www.smallcappower.com/companies/simba-energy-inc/research-reports.html. 


Ubika is an investment research and capital market services firm based in
Toronto and Vancouver with a proven track record of identifying and launching
coverage of high potential small and mid cap stocks at an early stage, thus
offering timely market insights. Its specialty is small-cap companies with a
market capitalization of less than $1 billion.


DISCLAIMER: Ubika Research has received compensation from Simba Energy Inc. for
providing analyst research coverage. Except for the historical information
presented in its reports, matters discussed in these documents contain
forward-looking statements that are subject to certain risks and uncertainties.
Hence, actual results could differ materially from any future results,
performance or achievements expressed or implied in the reports.


Ubika Research and www.smallcappower.com (are both divisions of Ubika
Corporation), and are not registered with any financial or securities regulatory
authority, and do not provide nor claim to provide investment advice or
recommendations in its reports. Readers are encouraged to talk to their own
investment advisor before making specific investment decisions. Our full
disclosure is available at http://smallcappower.com/disclosure.aspx

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