Swala Oil & Gas (Tanzania) plc has announced it engaged Exotix Partners LLP (Exotix) to place corporate bonds of up to a value of $120 million in order to finance successful acquisition of Block D in Burundi.
Swala Energy says the successful acquisition of Block D in Burundi is part of its strategic intent of continuing to expand operations into other African jurisdictions.
“Engaging Exotix, with its unmatched experience in raising funds for African projects, is a step towards completing that transaction. As an active supporter of the development of the Tanzanian capital markets, Swala will also invite interested Tanzanian institutions, along with other investors, to participate in this Exotix placement,” said Swala Energy CEO Dr. David Mestres Ridge.
Last month Swala Oil entered into an agreement with Surestream Petroleum Limited to acquire Surestream’s wholly-owned subsidiary, Surestream Petroleum (Burundi) Limited which had a 100% working interest in Block D in the Republic of Burundi.
The block is partly onshore and partly offshore, and covers portions of the northern end of Lake Tanganyika, an area where oil seeps, slicks and tar balls have been reported
Block D is located along Burundi’s western border with the Democratic Republic of Congo at the northern end of Lake Tanganyika. The license primarily encompasses the offshore part of the lake, with minor acreage onshore. This region is of particular interest as it lies on the same trend as the multi-billion barrel Lake Albert oil discoveries along the western branch of the East African Rift System.
The northern end of Lake Tanganyika consists of four half grabens, each with Neogene-aged rift sediments in excess of 4000m, significantly thicker than the analogous oil-bearing Albertine Basin. High geothermal gradients are likely to lead to maturity at shallower depths and thus open up the potential of shallow trapping in addition to deeper targets.
The area is well-known for its oil seeps, slicks and tar balls, which indicate an active hydrocarbon system with possible up-dip migration from kitchens located on the western side of Lake Tanganyika. Analysis of the tar balls suggests a similar origin to that of the oil discovered in Uganda’s Lake Albert but with a more terrestrial component.
“The Burundi licence is a very prospective licence and its development will be helped by the nearby route of the proposed Uganda-Tanzania oil pipeline. We look forward to deepening our relationship with Surestream, who today become one of our principal investors,” said Dr. David Mestres Ridge