evolution of africa oil corp... mark ii, page-4

The possibilities make my head spin...

Ref:
http://www.observer.ug/index.php?option=com_content&view=article&id=26749:tullow-chief-speaks-of-east-africas-great-oil-prospects&catid=79:businesstopstories&Itemid=68

London: East Africa is set to become a major oil province, according to Tullow Oil’s glowing half-yearly results, released last week in London.

Tullow announced that with promising prospects in Kenya, combined with Uganda’s already confirmed 3.5 billion barrels of oil, East Africa continued to show immense potential. Tullow says it is close to signing a memorandum of understanding on a basin commercialisation plan with the government of Uganda.


Here's some comments from Tullow's CEO Aidan Heavey, made to the Observer only 2 days ago from the above article....

“The oil industry doesn’t appreciate how important the East African basin is going to be,” said Tullow CEO Aidan Heavey, adding that in spite of the challenges of doing business in the region he would not swap his assets for anybody else’s.

“Opportunities for East Africa are just enormous,” he said.

End Exerts.


Enormous....I like that word :).

SWEnormous even better :)


As for the prospect of Tullow holders taking a stake in SWE as in partnership with Tullow on Block 12B, (as well as the leverage off our other licenses, I have worked out that a holder of the GBP can buy 1 SWE share for around £0.15p versus £10.69 for 1 Tullow share.
Key being, same 50% exposure, and leverage off our other licenses in Tanzania & possibly Zambia as a free bonus.

Of course Tullow has other many and varied Highly successful assets & income streams, but in relation to 12B's (1.2-2.2 billion barrels estimate) 50/50 split with us, leverage (Fair Value & lead up to & if successful drilling) seems to highly favor a strategic stake in SWE?

I very much anticipate International buying, if not already underway....more than just normal holder investor activity.

Is this a strategy where you can have your cake, and eat it too?