Swala Halts Further Investment in PAE PanAfrican Energy Corporation citing Regulator Delays
Swala Oil & Gas (Tanzania) has announced that it will not extend the deadline to complete the previously announced investment by Swala in PAE PanAfrican Energy Corporation, a subsidiary of Orca Exploration Group Inc. of up to US$130 million for any specific time period. The extension pertains to tranche 2 and tranche 3 and does not impact tranche 1 which closed on January 16, 2018.
According to Swala the decision was taken in consideration of the uncertainty in the timing of the regulatory approval of Swala’s prospectus and listing application in Mauritius as well as the time taken by the regulator ‘thoroughly understanding the Swala prospectus’.
The company adds that the decision not to extend the deadline does not terminate the Swala Investment and Orca continues to support Swala’s efforts in closing its financing although Orca may terminate the balance of the Swala Investment at any time.
“Swala and Orca will continue to complete the process started earlier this year, but do not believe that either company is served well by agreeing to timelines that are outside of their control. The process in Mauritius is advancing at creditable speed but oil and gas is a new investment area and the regulator has spent time thoroughly understanding the Swala prospectus. Our understanding is that the prospectus will be reviewed by the Executive Committee of the SEM this coming week and are already engaging with Tanzanian and overseas investors in anticipation of an early closing,” said Swala CEO Dr. David Mestres Ridge.
In May Swala announced that the two parties had agreed to an additional extension to the date by which the second closing and third closing and which had to be completed from 11th May 2018 to 29th June 2018.
In a rejoinder Orca Exploration has announced that it has indefinitely extended the timing for the closing of Tranche 2 and 3 of the previously announced investment by Swala Oil & Gas (Tanzania) in PAE PanAfrican Energy Corporation, a subsidiary of Orca, of up to US$130 million, but the Company retains the right to terminate the extension at any time.
Orca Exploration says the decision was taken in consideration of the uncertainty in the timing of regulatory approval of Swala’s prospectus and listing application in Mauritius. Orca’s decision not to set a specific date to complete the 2nd and 3rd tranches does not terminate the Swala Investment and Orca continues to support Swala’s efforts in closing its financing.