Gediminas Jasionis
-6 Vote 0

Simba Energy Inc. (CVE:SMB) (PINK:SMBZF) Gaps Up Because of Neighbors' Success

by Gediminas Jasionis Mar 27, 2012
smb_chart.pngSimba Energy Inc. (CVE:SMB) (PINK:SMBZF) stock price jumped up significantly after the company hired independent experts to re-evaluate their oil properties.

SMB jumped up 36.8% under a trading volume of 3.6 million which was roughly ten times heavier than the 90 day average of 377.7 thousand.

Stock gained value after the company declared to have hired Sproule Associates to assess their Kenyan oil project. The news might not have had such an effect if not the recent discovery by Tullow Oil Plc. (LON: TWL), which also operates in the area.

Simba is only in the beginning phase of exploration. Their closest goal is to carry out a passive seismic survey next month. Geological and geophysical studies have been carried out thus far. The independent opinion from the newly hired independent expert company should be received over the coming two months.

simba_energy_logo.jpgBecause the event doesn't provide any direct value for the company in the short term the recent price jump will likely fade away pretty soon.

On the other hand,  SMB share price jumped very quickly on Monday morning, which showed that shorts simply got squeezed. There was no serious interest in the stock for the remaining part of the session, and thus a quick drop in price is less likely because of limited interest.

Comments (3)

1. Guest
June 21, 2012, 09:00AM

Quotes "Liberia seems to be a dead end."

Not according to Simba. Delays are nearing an end due to the completing of a changeover of government of the National Oil Company of Liberia. Final approval has already been passed and is simply awaiting a formal regulatory sign-off. Around 5 years ago, Simba was fundamental in putting in place the entire legislative structure with the government, as no oil explorer had ever approached Liberia before. In April 2012, June 2012 was mentioned as the possible target date for completion of this. Obviously, adding a little joy into the equation is always a good idea, but IMO, it's a matter of only a few days or weeks away now. Another catalyst towards underpinning the SP.

2. Guest
April 07, 2012, 04:33PM

Quotes Report them to the financial regulator? For what? Giving their opinion? Sorry, but financial regulators are not interested in this article. It does not slander the does not advise you to sell or buy the stock.....merely an opinion.

As for Simba - it's Kenyan property has increased in value due to Tullow's recent oil discovery. Should it prove commercial, then Simba's property gains a bit more value.

Whether Simba has oil in Kenya is not known at this time. I would suspect drilling is not going to happen till last quarter 2012 or into 2013. Liberia seems to be a dead end. Other properties will take time to be 100% approved and then initial work ups down.

Of course, if Simba hits oil...or even a little hint of it - I believe the price will increase significantly. Drilling will tell the story.

3. Guest
March 28, 2012, 03:09PM

Quotes What a very poor article, full of complete contradictions and inaccuracies.

Perhaps one of the worst written pieces I have ever had the displeasure of reading.

Do a bit of research man (or woman, not sure looking at your picture) before you write an article in future, its quite easy, no excuses for getting the day's of the news releases and the rises out of sink.

One would think you had an agenda against the company, if I read such blatant tripe again I will have no choice but to report you to the financial regulator in country that you operate from.

Type the characters that you see in the box (5 characters).

This is a captcha-picture.