10-4-1

!!TEN FOR THE PRICE OF ONE!!

What an apt title for a SWALA Report.

Might be “40 for the price of one” soon!! (***see notes further down this post)

Without the need to relist everything in the report, as I’m sure everyone has had a good read and possibly like myself, read it a few times.

Value = $0.81

Target = $0.57

There was very limited selling into the buying on Friday afternoon, when report released. First off I thought it was pre Road-show buying.
The Road-show is scheduled for Monday, Tuesday & Wednesday next week.

Resistance is not known past 25 cents, as we’ve never been there, and this report becomes the third to state SWE is substantially undervalued.

At this stage, there is not much depth to the sell side, so pre-open Monday will be interesting.

I was pleased to see a lot of reference to Swala’s business model. We here have said how positive this is. Exposing the potential of the local resources to local investors is a great strategy and has been well thought out (prior to IPO listing), being the shares to list on the Tanzania EGM are non-dilutionary, as they are already accounted for within the shares on issue.

This will also raise between 2 & 3 million dollars$$.
I also like the term “hottest location on the planet”….. (like there’s anywhere else to explore at the moment…LOL)
Valuations: What I found significant was that ALL methods see SWE as severely undervalued.
Yes many here know this all too well via our thorough research and sharing :) – HOTCOPPER = First off the old block!

Land value ($11,000 per sqkm) alone places Swala at a value of 231 million dollars = ~$1.50 per share.

Should ONE…just ONE discovery of 200-250 million barrels be discovered….SWE is valued at above $6.00 PER SHARE.

*** Considering we have 10 Basins, how many drill targets might we get in each basin??? Maybe the next research title will read “FORTY (40) for the price of one “ in short time.
I still can’t get past the importance of getting the Eyasi-Wembere license across the line formally. Each basin (4 of them) is DOUBLE the size of the Lokichar Basin…where Tullow and Africa Oil have had HUGE SUCCESSES.

I am not only very confident that we would at least get one decent strike….but far more confident we will have multiple beneficial strikes across our extensive license basins…..EASILY surpassing a 200-250 million barrel resource and $6.00 valuation (POTENTIAL and In Due Course).

As Swala’s share price gains traction, I believe the small Insto’s will be able to take a stake. Swala will not show up on to many small Insto’s scans at the moment, as we won’t be within their “policies to purchase mandates”……This is about to change in my view.

I can just feel that Tullow and/or Africa Oil (as first up contenders, but many others as well) will be looking to take a stake in Swala…how much 5%, 10%, 19.9% or the lot??

At the moment, it would be cheaper to take Swala completely, and suck-up all the licenses we have….(note: formalization of Eyasi-Wembere license might just be the catalyst which starts this ball rolling…be prepared…there will be no warning!) – The protection here might be our high T20 ownership….but if the price is right :) !!

Dave Wall came up with a lot of primo one-liners…”join-the-dots”, “early stage-excellent value”, “meteoric rise” – He is very upbeat!, and from what I have read about the guy, very good at what he does.

We’ve also pointed out…there is much news, from a variety of sources, direct and indirect that will have beneficial ramifications for SWE.

One thing the report did not highlight enough was the limited shares available. AND the large holdings held by our chairman, CEO and other board members (Direct and Indirect). It is great to have such a committed Team leading and managing the Company.

Option conversion will provide another 2.7 million dollars$$.

Kenya Prospectivity Paragraph. – You can tell…this entire paragraph will come into its own once more info is in, and a drill is scheduled.(Pg7) 2.2 Billion Barrels potentially trapped, same play as Uganda and Lokichar, Natural Oil Seeps, coincident with boundary faults etc etc.

Dave also did not note that the Zambian Blocks under application, if successful will provide 83% of each license awarded to Swala. Value to add if awarded 1,2 or 3 of the applications.

Reference to Beach Energy??
1. For price of/farm in costs details
2. Maybe we might join up with them.

Reference to “Other Countries”
My guess is watch this space for Malawi….Pennypincher’s “ON THIS PLANET” guess-tip-poke-throw-a-dart-at-a-map-hunch.

All in all, and without regard to the Valuation or Target price…..I do have to say this is a well-researched and presented document.

Congratulations to all the contributing SWE posters (new and old....LOL, can we have old SWE posters yet ? :), for a well-researched, polite, informative and free sharing thread.
Truly HC at it's finest!!

The accuracy of all the Hotcopper research is evident now.

Enjoy the rest of your weekend.