Tata Petrodyne seals farm-out transaction with Swala Energy after payment of $5.7 million

Swala Energy Limited has confirmed that US$5.7 million has been received from Tata Petrodyne Limited (TPL) pursuant to the farm-out transaction with TPL for the Kilosa-Kilombero and Pangani licences in Tanzania.

This was one of the outstanding terms of their farmout agreement for the Kilosa-Kilombero and Pangani licences in Tanzania that were finalized last week by subsidiary Swala Oil and Gas (Tanzania) Plc and Tata Petrodyne Limited.

Under the terms Tata was to proceed to payment of the reimbursable past costs of US$5.7 million, due within five working days from Completion, and to the transfer of licence working interest in the two licenses.

This means that the newequity in the licences shall be:Swala Energy Tanzania Limited 50%, Swala Energy 25% and Tata Petrodyne Limited 25%.

Swala Energy is serving a one year extension on each of its licenses by the Tanzanian Ministry of Energy and Mining (MEM) within which an exploration well must be drilled in each of the Kilosa Kilombero and Pangani licences in Tanzania to the 20th February 2017.

(TPL) pursuant to the farm-out transaction with TPL for the Kilosa-Kilombero and Pangani licences in Tanzania.

This was one of the outstanding terms of their farmout agreement for the Kilosa-Kilombero and Pangani licences in Tanzania that were finalized last week by subsidiary Swala Oil and Gas (Tanzania) Plc and Tata Petrodyne Limited.

Under the terms Tata was to proceed to payment of the reimbursable past costs of US$5.7 million, due within five working days from Completion, and to the transfer of licence working interest in the two licenses.

This means that the newequity in the licences shall be:Swala Energy Tanzania Limited 50%, Swala Energy 25% and Tata Petrodyne Limited 25%.

Swala Energy is serving a one year extension on each of its licenses by the Tanzanian Ministry of Energy and Mining (MEM) within which an exploration well must be drilled in each of the Kilosa Kilombero and Pangani licences in Tanzania to the 20th February 2017.

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