Simba Energy Inc. announced that it has signed a memorandum of understanding with Ajax Exploration Ltd. to farmout a 66% interest and operatorship of Block 2A, onshore Kenya. The transaction provides a significant investment in Simba's Kenya asset, delivering a fully carried predrill exploration program and a commitment to drill and carry Simba for one exploration well. Ajax is to commit to a work program including drilling one well for Simba representing a gross investment of up to USD 36.5 million (assuming a well cost of USD 25 million in Kenya).

Ajax will pay Simba up to USD 3.1 million in back costs. In addition, Ajax will provide a net carry of up to USD 12.4 million (assuming a well cost of USD 25 million).