Swala Energy announces progress in its planned farm in East African assets

Swala Energy Limited has announced that, following the completion on the 31st March 2015 of the strategic review process managed by FirstEnergy Capital LLP, the Company has received a number of expressions of interest from credible parties wanting to farm in to one or more of Swala´s licences.

The company that holds interest in Tanzania (Kilosa-Kilombero, Pangani licenses), Kenya (Block 12B) and Zambia (Block 44) is seeking a partner as the company seeks ways of raising alternative funding transactions.

“During this process a substantial third party has approached the Company to request, for consideration, a period of exclusivity during which to carry out due diligence on the Company’s assets, with a view to concluding farm-in agreements on one or more of the Company’s projects,” reads  an update by company secretary Adrian Di Carlo in December 2014.

A likely target for the farm-in is the 25% share expected to be re-assigned in Kenya’s block 12B from Spain’s Compañía Española de Petróleos CEPSA after its decision to withdraw from the licence on 31st August 2014.

The funds are to be applied to fund additional near-term work on the Company’s Tanzanian and Kenyan licenses, as well as for business development and general administrative purposes.

Swala also announced earlier this month that it is in the preliminary stages of planning a listing on the AIM Market of the London Stock Exchange as the company seeks to improve its liquidity, open it to investment from the London capital markets that have experienced African oil and gas success, and expose it to larger potential investment that can aid the Company’s continued development.

Author: OilNews

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