Following in the footsteps:Many here have made the association...

Following in the footsteps:

Many here have made the association of SWE as a look alike to Africa Oil…..

But why…?

I have made an attempt to liken SWE to Africa Oil and here is my synopsis: (brief overview)

Africa Oil really started to come into its own in 2009 with the acquisitions of East Africa Rift territory. This was achieved via convertible loans and debt to warrants. A key being the exercise was set at .90cents for the warrants and the convertible loan at $1.50, although if Africa Oil shares traded at $2.00 or more for 20 days, a forced exercise would come into play. They were also able to provide private placements at the same time, proving regional confidence was high.

The following 18 months was spent fending off legal challenges…successfully. Also raising substantial funds at $1.00 a share through private placements. They also undertook farm out agreements with Tullow commencing in 2010 through 2011 and continued to grow they’re portfolio whilst proving already owned assets….gaining more working income.

Africa Oil had a very small amount of shares on issue.
With the arrival of mid-2011 Africa Oil had amassed some positive acreage, identified drillable targets and had excellent probable reserve estimates published.

The rest is history as they say.

Around April 2011, Africa Oil had a couple of false starts in SP appreciation, although by the time July 2011 rolled around, the real speculators had arrived edging up the price to the $2.00 mark.

Within the next 6 or 7 months, Africa Oil had gone from ~$2.00 per share to over $10.00 per share. An upward incline of ~$1.80 per month (staggered rise as you would expect).
The insatiable appetite for regional prospectively, ensured Africa Oils dilution was able to be minimised via their placement details.

Sparked by the success of Ngami in March 2012, Twiga’s discovery followed and paved the way for further large placements which took place at the end of 2012 (Nov & Dec)
All this, even with the unsuccessful Puntland (Somalia) campaign, Africa oil was on a roll. Money was not an issue. The regional prospectively took care of that.

Money arrived (share buyers) well before drilling and subsequent success.

We know see Africa Oil recovering from recent lows and heading back over time to reach new highs in my opinion.


So now to SWE:

Listed only months ago, SWE has excellent prospectivity and ranks 5th in the acreage positions.

We are targeting same/similar geological structures as Ngami and Twiga.

The similarities have been made by some very reputable media and research organisations, so is not easily ignored.

It is quite realistic to think that if things were done in reverse order….i.e: if we successfully drilled our acreage (Tanzania or Kenya), prior to Ngamia or Twiga, that the assimilations between our land would be being made. In my mind, there is nothing to say that WE ARE NOT actually better placed….What if Ngamia and Twiga are actually the extensions…?? (Contemplate this for a second.)

We already have some huge potential in 12B, possibly billions of barrels.

We have a very low MC at the moment.

We have a very low amount of shares on issue, with an extremely high percentage held up top.

Partnered with Tullow Oil in Kenya (50/50).

There is more positive information (regional & very close) available now, than there was when Africa Oil started it rise, and we are in the thick of it.

We are quietly confident that SWE is on the verge of securing Eyasi-Wembere with potential for 8 times the basin sizes currently being so successfully drilled in the Lokichar Basin (Ngamia and Twiga)

Our acreage follows the trend along the rifts arms. Our 2D seismic are proving very positive in the Tanzania K-K licence and look forward to Pagani. To say nothing of the details in our presentations, and the look alike presentations to that of early Africa Oil days.

We are moving ahead, in line with the working plan, and announcements are forthcoming as necessary. Reporting is to the point, and not hyped. Clear, concise & precise. Most importantly, pointing to being very positive.

Another important similarity and strategy is that Africa Oil farmed out to more than one other explorer, this enabled them to be operator on some projects, and their partners to be operators on others. This seems to have shared the workload somewhat (simple explanation)…but this actually enabled multiple, simultaneous project advancement at what I would presume huge cost efficiencies, with back-to-back potential.

I can see us eventuating to happing multiple drills on the go...as well as other things. A little forward vision.

The more we can do to prove OUR projects, whilst our neighbours prove the region is of immense value to us. Sit and enjoy. The derisked value has not been realised yet.

Time line wise, I (me), I, place SWE ahead of Africa Oil by between 12 & 18 months.

We can also be quietly confident of being privileged to hold at least 1 Zambian License (maybe up to 3), which would provide further rift continuation acreage.

We have also had a (one) false start with regard to SP appreciation. A great test for resistance. I believe this is still about distribution of shares, from IPO holders taking some profit & traders playing the game to those willing to hold.

Any good news will surely see that resistance become new support.

We have some of the most experienced management, not only having been there, but also done that!

What strikes me as clearly evident is that money arrives well before any substantial news but based on potential.

For the majority of us on HCopper, we are only small fish, in a rather large pond, filled with great whites & whales.
I am confident that the Great Whites and Whales are getting hungry.

If SWE is too truly follow in the footsteps of Africa Oil, we need do nothing more than the management is doing at present, gain ground and continue our project advancements.

It only takes ONE committed entity to catapult SWE.

It’s a puzzle, and we are putting the pieces together, before others even have theirs…almost seems unfair :)