Swala Announces Further Extension To The Second And Third Closing Dates Of The Orca Investment

Swala Oil & Gas (Tanzania) plc has announced that Orca Exploration Group Inc. (Orca) has agreed to an additional extension to the date by which the second closing and third closing of the previously announced investment by the Company in the Orca group of up to US$130 million must be completed from 11th May 2018 to 29th June 2018.

There are no assurances given that one or more of the transactions will be completed by 29th June 2018 or that they will be completed on the terms previously disclosed.

Dr. David Mestres Ridge (Swala CEO) said: “The new extension is not a reflection of lack of interest, which remains strong both nationally and internationally, but of certain aspects of the listing approvals process. Having identified these issues, the Company has taken steps to ensure that no further delays are incurred as a result, and shall advise the market as the process progresses.”

In January Orca Exploration Group announced that the escrow release conditions have been met regarding the first tranche of the previously announced investment of up to US$130 million by Swala Oil & Gas (Tanzania) plc in the Orca Group.

Under the first tranche of the Investment, Orca sold 7,933 Class A PAEM Shares (7.93%) that it holds of PAE PanAfrican Energy Corporation to Swala (PAEM) Limited, a wholly-owned subsidiary of Swala, for gross proceeds of US$25,782,250 (US$21,022,450 net of certain purchase adjustments) payable in US$17,055,950 cash and the right to receive either US $3,966,500 face amount of Swala convertible preferred shares by 2 March 2018 or US $3,966,500 in cash in the event such Swala shares are not issued by such date.