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Swala Energy admitted to ASX, debut set for Thursday

Published: 04:00 17 Apr 2013 BST

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Swala Energy (ASX: SWE) has been admitted to the ASX and is set to light up the boards at 12pm (AEST) tomorrow with around 67.5 million shares on issue.

The company will hit the boards following a successful IPO offering 55 million shares at $0.20 each to raise $11 million.

Swala is focused on East Africa where a number of major oil and gas discoveries have been made recently.

The company is well positioned to take advantage of the interest in Kenya and Tanzania, where its assets are located and international oil and gas companies have become increasingly interested.


Kenya

Swala holds a 50% interest in Block 12B on the eastern edge of Lake Victoria in Kenya.

U.K. major Tullow Oil (LON: TLW) holds the remaining 50% operating interest and has acquired 3,500 kilometres of airborne gravity-magnetic data and a further 2,500 kilometres of low level, detailed magnetic data in 2012.

Block 12B covers about 8,000 square kilometres and covers part of the eastern branch of the East African Rift System.

Notably, the block is close to a number of discoveries including Africa Oil’s (TSXV: AOI) Ngamia-1 and Twiga South-1 oil discoveries.


Tanzania


Swala has a 50% operating interest in the Kilosa-Kilombero Licence onshore Tanzania  that is largely unexplored and covers a 17,675 square kilometres area across a portion of the East African Rift System.

Its subsidiary Swala Oil and Gas (Tanzania) had in 2012 acquired over 13,500 kilometres of combined airborne gravity and magnetic data and carried out remote sensing activities and a field reconnaissance to the licence area.

Based on this, Swala and partner Otto Energy (ASX: OEL) have decided to progress to the second year of the initial exploration period, which will involve the acquisition of 300 kilometres of 2D seismic and geochemical sampling.


East Africa

East Africa has become a hotspot for oil and gas players with Anadarko Petroleum’s (NYSE: APC) Windjammer gas discovery in February 2011 resulting in the identification of a resource of more than 30 trillion cubic feet of recoverable gas offshore Mozambique.

Apache Corporation (NYSE:APA) has also made the Mbawa gas discovery off Kenya that it is still evaluating.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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