Swala in Tanzania

Swala Oil and Gas (Tanzania) Plc (“Swala”) is a Tanzanian oil and gas exploration company that is actively exploring the East African Rift System. The company is a subsidiary of Swala Energy Limited.

The company has been listed on the Dar es Salaam Stock Exchange (DSE) since August 2014. In Tanzania, Swala has 50 percent equity in, and is operator of, the Kilosa-Kilombero and Pangani licences. =Kilosa-Kilombero licence= The Kilosa-Kilombero licence covers an area of 17,675 km² on the East African Rift System (EARS). The EARS extends from Uganda to Malawi in the west and from Kenya to Tanzania in the east. Oil has already been found in the Lake Albert area in Uganda that is located in the western branch of the EARS and in the Lokichar Basin in Kenya on the western branch of the EARS. These findings suggest that the extensive presence of oil in the rift system. Swala’s partner in the Kilosa-Kilombero licence is Otto Energy Tanzania Pty Ltd, a subsidiary wholly owned by Otto. Both partners have a 50 percent interest in the licence. Swala is the operator.

In 2013, 2D seismic surveys covering an area of 300-kms were carried out over the three basins in the Kilosa-Kilombero licence area with initial results indicating a possible presence of large-scale structures along the edges of the basin. The seismic surveys were carried out by Polaris. Swala awarded the contract to Polaris in May 2013. Meanwhile, the contract for carrying out further seismic surveys has been extended. The Company is now processing and interpreting the seismic data with a view to identifying suitable drilling targets for 2015.

=Pangani licence= The Pangani licence covers an area of 17,156km². It is located in the Pangani Rift on one arm of the Northern Tanzanian Diversion triple junction. The rift is part of the East African Rift System. Between mid-November and late December 2013, the company acquired 200km of 2D seismic over two basins and in 2014 a further 200km of 2D seismic. Like the Kilosa-Kilombero seismic surveys, the Pangani surveys were carried out by Polaris. . The Company is now processing and interpreting the seismic data with a view to identifying suitable drilling targets for 2015.

=CSR= In March 2015, Swala announced the launch of Swala Energy Trust Company Limited that owns 7.5 million shares in Swala and will invest profits from the gradual sale of these shares to support and uplift the welfare of communities in areas where it operates. According to the company, the Trust has been designed to allow for substantial increase in the livelihoods of Tanzanians under its wing who continue to face multiple challenges in health, education, sanitation and more generally in terms of poverty. The Trust is conducting a study to establish key partners in addition to carrying out a needs assessment in Swala’s areas of operations.



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