daytrading sep 4 afternoon, page-5

SWE in Herald Sun aswell BANG BANG

WITH spring now in the air and the step, it is as good a time as any to look at some small stocks with some really big potential.
The first is Swala Energy, which has managed to pull off a 15,300sq km land grab in the East African rift system, which is fast turning into one of the world's largest undiscovered oil provinces.
Since Swala put its foot on the prospects, Tullow and Africa Oil have both made five discoveries from five exploration wells in what used to be considered high-risk, frontier country.
Two of those discoveries, Ngamia-1 and Twiga-1, have been tested at 3200 and 2800 barrels of oil a day and have estimated productivity above 5000 barrels a day.
With the potential to also be awarded the Eyasi block in Tanzania - which would take its land to 21,000sq km - Swala could soon have its foot on 10 unexplored onshore basins in this same rift play so the chances of it making similar discoveries are good.
Swala has also bid on three blocks in Zambia to add to its greenfield position.
Chief executive Dr David Mestres Ridge said the management team was experienced in the East Africa area, with most having been involved in the Toronto-listed Black Marlin, sold to Afren in 2010. "We are all familiar with the place and the rules so we started assembling the company in 2011," said Dr Ridge.
The aim is to cover six of the basins with seismic testing by the end of this year, which should provide some juicy drill targets.
Interestingly, Swala was designed in such a way that the opportunity for local investment is built in with an operating subsidiary, SOGTL, set to list on the Dar es Salaam stock exchange in Tanzania on October 1.
The listing should add local legitimacy at the same time as reducing country risk and parent company shareholder dilution.
With some solid and proven operating partners in the form of Tullow Oil and Otto Energy and one of the larger land banks in the area, Swala Energy is a speculative buy with significant risk but much greater potential upside.