The drilling of the Kito 1 well in Tanzania’s Kilosa Kilombero license will likely happen in 2019 following the signing of a Memorandum of Understanding between Swala Oil and Gas, the Tanzania Petroleum Development Corporation and the Tanzania Wildlife Management Authority that will ensure that the explorer receives, in a timely fashion, all necessary permits to drill the Kito-1 exploration well in 2019.
The company which declared a Force Majeure under the Kilosa-Kilombero Production Sharing Agreement in late April due to its inability to drill the Kito prospect after failing to receive the required licenses was due to since 2016 has to date acquired 800km of 2D seismic that further delineated the Kito Prospect and identified a number of additional leads and prospects in the Kilombero basin.
By March 2016 Swala told shareholders awarded the Drill Support Team contract for the 2016 drilling campaign to the Tanzanian subsidiary of AWT International (Asia) Sdn Bhd, a Singapore-headquartered firm offering subsurface, subsea and surface facilities engineering services and contracting solutions to the oil and gas industry. A feasibility study in the area also showed the majority of roads and bridges are suitable to move a rig and a road survey had also been planned ahead of drilling to ensure all hazards and obstacles are identified ahead of drilling in Q3 2016.
As per the Gaffney Cline & Associates Competent Persons Report 38.9 mmbo has been allocated to Kilosa-Kilombero with Kito P50 Prospective Resources assessed at 21.5 mmbo (net). Of the various prospects Kito Basal Sandstone and Kito Sequence 1 Sandstone have the highest likelihood of success with 11% and 12% respectively. The prospects were identified following 430km 2D seismic survey carried out in the Kilombero Basin in 2013
There are four joint venture partners in the block with a 25 percent interest each. Among the partners include the Swala Energy (operator), Otto Energy, Tata Petrodyne, and MV Upstream a joint venture between Vegas Oil & Gas Limited, (Vegas) and Motor Oil Hellas SA (MOH).