Swala Oil and Gas to raise Kshs.260 million in Tanzanian IPO

Swala Oil and Gas will starting today open its shares to the Tanzanian public selling 9.6 million shares at TZS 500 (approx. $0.31) a share as it seeks to get additional funds to the working capital.

The initial public offer that starts today will close on 4^th July with the company being listed at the Enterprise Growth Market Segment (EGM) of the Dar es Salaam Stock Exchange according to a statement by the Tanzania Securities Limited.

Investors will have an opportunity to buy at least 100 shares valued at TZS 50000 with no maximum stipulation on the subsidiary of the Australian independent oil and gas Exploration Company actively exploring the East African Rift System whichholds substantial equity in assets in Tanzania and Kenya and has an active business development program in Sub-Saharan Africa.

“We are delighted that today Swala Oil and Gas Tanzania Plc is officially launching its IPO. This is a great step not only for Swala but also for Tanzania and its people. Investing in oil and gas shares is a means for economic diversification for any individual and it allows interested parties to own a stake in a fast growing business,” says Swala’s CEO David Mestres Ridge.

Swala Energy is an operator in two blocks in East Africa Community’s largest country including the Pangani block near the border with Kenya where the company has 32.5 percent interest and a net acreage of 5,576 km2 as well as a 32.5 percent interest in the Kilosa-Kilombero block in Central Tanzania spanning an acreage of 5,745 km2.

Swala plans a 200km seismic acquisition in the Pangani block in July while a 500km seismic acquisition is set for October on the Kilosa-Kilombero block while drilling in both blocks is planne for 2015.

Following the listing Swala Energy will hold between 58 and 60 percent of the shares in Swala Oil and Gas (Tanzania) Plc with the listing on the DSE expected to raise between US$1 million and US$3 million according to a shareholder presentation by the company last week.

“There has been a great debate on the need for local content in this booming oil and gas industry; we are delighted that today  Swala would become the first oil and gas company to walk the talk. We strongly believe that Tanzanians should be given an opportunity to participate in the oil and gas business; this IPO opening allows them to do just that,” says Abdullah Mwinyi, a Director at Swala Oil and Gas Tanzania Plc.

Apart from Tanzania Swala also has 50 percent interest in Kenya’s Block 12B alongside Tullow Oil as well as 100 percent interest in Zambia’s block 44.