Surprise US $ 36M Deal Blindsides Market Surprise!
Swala Energy (ASX:SWE) just announced US$36 million in funding – we didn’t even know they were trying…
This surprise agreement was struck with an as yet unnamed party – covering all past costs plus a free carry through seismic and two optional wells.
The unnamed party will receive a 25% working interest on SWE’s 12B Block in Kenya.
On a per km2 basis, SWE’s farm out is the best farm out achieved on shore Africa to date.
This milestone deal means investors are getting a free ride in Kenya – SWE just have to sit back and watch as their partners do all the exploration work.
SWE is now fully funded for their 2014 Kenyan exploration program – this will allow SWE to focus their efforts in Tanzania and potentially securing other licences over Africa.
Nobody saw that coming…. We love pleasant surprises.
Both the $4.4M equity raise (at an 18% premium to the share price) in November 2013 and this recent US$36M farm-in deal came completely out of the blue. A testament to management keeping tight lipped about important developments.
Meanwhile, potential in the Tanzanian acreage continues to grow – one Analyst now speculates a $2.75 share price rise – almost 900% from today’s price – should a drill prove successful. This may be as soon as 12 months away…
Who knows what these guys are cooking up in the background, and what the next unexpected announcement might be…...continues....
SWE Price at posting:
29.0¢ Sentiment: LT Buy Disclosure: Held
