TANZANIA: Swala Oil & Gas Receives 2 Year to the Kilosa Kilombero License

Swala Oil & Gas (Tanzania)  has advised that it has received an extension to the
Kilosa-Kilombero licence from the Ministry of Energy in Tanzania. The licence extension, valid for two years from the 18th of August 2021, was confirmed following discussions with the Tanzanian Petroleum Development Corporation on the 10th of September 2021, and allows for the Company to:

• Refresh the Environmental Impact Assessment first completed for operations in 2016 and which has a validity of five years;
• Refresh the rig evaluation and selection studies to include rig-sharing or shallower rigs from neighbouring jurisdictions;
• Secure all necessary permits including those from the Tanzanian Wildlife Authority (TAWA), Tanroads and the Rufiji Water Board.
• Drill one exploration well targeting the Kito prospect (‘best estimate’ net to the Company 147mmbbls).

Mr. Abdullah Mwinyi (Swala Chairman) said: “The one-year licence extensions were operationally difficult to manage because we have to do again a lot of the work that we prepared in anticipation of drilling in 2016, and this could not be fitted into a single contract year. The two-year extension granted by the Ministry removes the commercial uncertainty and is a positive development in the restructuring discussions of which we notified the market on the 9th of September 2021.”