Swala Energy shapes up 2015 drill targets in Kenya and Tanzania
Published 14-OCT-2014 14:30 P.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Swala Energy Ltd (ASX: SWE) has identified a strong prospect to be drilled with JV partner Tullow Oil at its Block 12B in Kenya.
SWE and Tullow both committed to drilling at Block 12B in Q2 of 2015 after a recently completed 2D seismic survey identified ten structural leads. A drilling prospect called Ahero ‘A’ has been selected as the most viable to begin with.
Drilling at 12B set for 2015
Block 12B in Kenya is highly prospective for oil and exploration by SWE and Tullow indicates that it has a basin with layers of sediments that could hold hydrocarbon reservoirs.
The 2D seismic survey recently at completed at 12B identified ten structural leads while also mapping the basin. SWE says the Ahero ‘A prospect’ is an area of 16km2 that’s been transected by five lines of 2D seismic. SWE regards it as the first viable drilling target for its 2015 exploration programme.
SWE’s Chief Executive Officer David Mestres Ridge says the drilling at 12B is just the beginning for his company’s plans for 2015 in Africa.
‘We are very excited at the decision by the remaining parties to drill Ahero “A”, one of a number of prospects identified in Block 12B and which our technical teams are continuing to investigate. With our recently announced successful 2D seismic survey over the Moshi basin and the upcoming seismic survey in the Kilombero, both in Tanzania, we are on track to develop a significant portfolio of leads and prospects to be tested in the coming year,’ he says.
Farm-in partner pulls out
This decision to drill comes after SWE’s $36M farm-in deal with the Abu Dhabi government owned explorer CEPSA fell through after the company withdrew from the Block 12B development, saying it would have preferred more time to review the 2D seismic data.
SWE says its wholly owned subsidiary Swala Energy Limited has referred a dispute with CEPSA to arbitration, to ensure that the 25% project share that was farmed out is returned to SWE in full and in accordance with the Farm in Agreement.
Seismic surveys accelerate in Tanzania
SWE is exploring for oil across the East African Rift System with projects in Kenya, Zambia and Tanzania where it’s just completed a 200km 2D seismic survey over the Moshi Basin.
SWE says the survey has identified a number of potential structural leads, which will be further investigated to pick drilling targets for exploration in 2015.
Another 450km of 2D seismic is now being shot by SWE over the Kilomebro Basin, which sits to the south of the Moshi Basin. The Kilombero Basin holds the massive Kito prospect, which has an independently assessed potential un-risked resource of 110.5M barrels net to SWE.
The new round of 2D seismic in the Kilombero Basin will focus on the immediate area at the Kito prospect and aims to firm up drilling targets for 2015.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
