[twitter-follow screen_name=’oilnewskenya’]<\/p>\n
Swala Energy<\/em>, through its 65% owned subsidiary\u00a0Swala Oil & Gas\u00a0(Tanzania)\u00a0says it has informed the\u00a0Tanzanian Petroleum Development Corporation\u00a0(\u201cTPDC’)\u00a0that it has committed to entering the second 2-Year exploration phase of the Initial\u00a0Exploration Term in both its\u00a0Pangani\u00a0and\u00a0Kilosa-Kilombero Production Sharing Agreement (‘PSA’)\u00a0<\/em><\/strong>licence areas, together with its Joint Venture partner\u00a0Otto Energy (Tanzania), a wholly-owned\u00a0subsidiary of\u00a0Otto Energy.<\/p>\n Under the terms of the PSA Swala could have withdrawn after both the First and Second Years of the\u00a0Initial Exploration Term should exploration results have proved disappointing.<\/p>\n Swala\u2019s decision to proceed into years 3 and 4 in both licence areas was supported by the encouraging\u00a0results observed following interpretation of\u00a0Swala\u2019s 2012 airborne gravity and magnetic survey\u00a0that was followed by the highly successful\u00a02D seismic campaign undertaken during 2013, where\u00a05\u00a0significant prospective hydrocarbon basins\u00a0<\/em><\/strong>were investigated by the acquisition of 563km of data.<\/p>\n The work commitment in this next period includes additional seismic acquisition and the drilling of 1\u00a0exploration well in each of the two areas to be completed before the end of February 2016.<\/p>\n Swala is excited about the prospectivity of both areas with the seismic data proving 2 significant\u00a0Neogene basins, similar in age to those basins being successfully explored in Kenya and Uganda by\u00a0Tullow Oil. In the Kilombero basin Swala has been further encouraged by the early identification of\u00a0the\u00a0Kito Prospect\u00a0which, pursuant to the ASX announcement made by the Company on 11 December\u00a02013, the prospective resource assessment of this structure, prepared by the independent\u00a0consultancy RISC, indicated a net prospective unrisked resource of between 12.5 million barrels and\u00a0110.5 million barrels net to Swala. This is also encouraging for the similar aged Moshi basin in the\u00a0Pangani PSA where further seismic surveys can help identify similar structures.<\/p>\n Throughout the first 2 years of the Initial Exploration Term Swala has carried out operations safely, on\u00a0budget and completed all its work commitments in a timely manner, much to the satisfaction of the\u00a0regulatory body TPDC.<\/p>\n Dr. David Mestres Ridge (CEO) said ‘The results of Swala\u2019s exploration efforts in our Pangani and\u00a0Kilosa-Kilombero PSA licence areas over the last 2 years has unveiled 2 exciting Neogene basins and a prospect of significant size in one of them and further prospects being investigated by our geological\u00a0teams.’<\/p>\n ‘We are very excited about the discovery of the basins and this initial prospect that all bodes well for\u00a0the joint venture\u2019s exploration plans for the next 2 years.’<\/p>\n ‘During these last 2 years we have enjoyed an excellent working relationship with the TPDC and are\u00a0looking forward to this continued positive and constructive relationship which is steadily enhancing\u00a0the prospect for onshore oil discovery in Tanzania.’<\/p>\n [twitter-follow screen_name=’oilnewskenya’]<\/p>\n","protected":false},"excerpt":{"rendered":"