Simba Energy is still hungry, says Edison

Simba Energy (CVE:SMB) is still hungry to extend its portfolio, says investment research boutique Edison.

The Toronto-listed oil junior, with a standout prospect in Kenya, added more depth to the exploration pipeline this month with new projects in Chad.

And in a note today Edison analyst Will Forbes says the new prospects look promising - he also points to recent deal activity nearby related to Glencore, which paid $331mln farming into proximate production and development blocks.

Forbes reckons the explorer could be worth around 20 cents a share - double the current market value.

The main focus at the moment is Kenya, where Simba recently completed a seismic exploration programme and began a farm-out process.

This has attracted significant interest, accroding to Forbes, who also highlights that Marathon, Tullow and Africa Oil have already been attracted to projects in Kenya.

"Although the Kenyan block stands pride of place in the portfolio, Simba has collected a portfolio of nine blocks in six countries (Mali, Guinea, Ghana, Liberia), all on a 100% basis," the analyst said.

"The three blocks recently added in Chad further increase its geographical exposure. These are close to existing discoveries (and production) and we believe could provide further upside in the longer term."