Swala Energy prepares for drilling of Kito Prospect in Tanzania

Swala Energy has started the process of looking for a drilling company for the Kito 1 Exploration Well in the Kilosa-Kilombero Block expected to spud in Early September 2016.

According to details on the expression of interest by the explorer the EOI is also a rig survey to establish viable rigs to be included in the required tender process to take place in February 2016 with the kito prospect expected will reach about 1,200 metres in depth.

The Kito prospect identified following 430km 2D seismic survey carried out in the Kilombero Basin in 2013 which suggested structural similarities between the Kilombero Basin and the Lokichar Basin in Kenya.

The first line of the current seismic survey acquired in the Kilombero Basin, Line 101, extended along the strike of the main bounding fault with initial interpretation of these data suggest the presence of four new structured leads, each being 5 to 10km in length.

At the northern end of Line 101, just beyond the Kito Prospect, the data showed that one of the identified reservoir horizons is rising, potentially indicating the presence of another structural closure.

A second well (option) in the Pangani Block onshore Tanzania.

Just recently Swala Energy announced it had awarded the Drill Support Team contract for the 2016 drilling campaign to the Tanzanian subsidiary of AWT International (Asia) Sdn Bhd, a Singapore-headquartered firm offering subsurface, subsea and surface facilities engineering services and contracting solutions to the oil and gas industry.

Meanwhile Swala Energy has said it has repaid amounts owing under an Interim Loan Facility to Hayaat International Limited for an amount of USD 1.1 million including fees under the terms of the Loan Facility as announced on 1 June 2015.

“We are once again grateful to Hayaat, a cornerstone investor in Swala, for their ongoing support and in particular having provided interim funding under the Loan Facility.” Dr. David Mestres Ridge (Swala CEO) said.

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