I think your question is a good one, and think it has wider implications?, so will attempt to answer. (note, some researchable, some my opinion)
I don't believe any are set aside directly as they have been for the Tanzanian Licenses. Not 100% sure on this though.
In Tanzania, this was always the plan since IPO listing, and was detailed in the pre listing documentation - Reserved Shares (I saw this before buying, and liked it, so very glad its come through). Our Tanzanian licenses are held through SOGTL (Swala Oil & Gas Tanzania, we own 65% of SOGTL) giving us 32.5% exposure to each license. (Partnered with Otto Energy)
In Kenya we have 50%, and partnered with Tullow as direct holders.
What I have seen is, as an emerging trend with the African Licenses, is that the Governments are undertaking to pour back around 20% of their royalties back into the local communities around the operations areas. (Awesome) (Researchable)
Given that, as our work programes increase, their will be many opportunities for the local communities & companies to emerge & benefit, including accommodation and infrastructure, transport, logistics (food and equipment), (wo)man-power, even so far as the cooks and cleaners etc etc.
If you look back over the thread at some of the earlier posts, you will see that I gave Swala Energy a "tick in the box" for their Corporate Social Responsibility (CSR) as one of my buy criteria. This was supported after researching Tullow's CSR policies and seeing they place VERY HIGH emphasis on CSR....even producing a report on what they are doing worldwide which can be viewed on their website.
A recent release highlights the commitment....the scholarships to train up some Geo's....this has 20, 30, 40 years of benefit to the Country.....A Swala "World First" initiative I believe.
I have not seen a better CSR than Tullows and think Swala is on par, given where we are at in regard to the on the ground work and development, and budget... noting their intent to continue, they get a big thumbs up for this.
This all makes perfect sense to me. It is my belief that Swala is planning on being a long term player in the REGION. What better way, than to be part of the communities you are engaged with, rather than just a foreign international "outsider". Mutual respect, trust and goals make this a win/win. I can see Swala...."being" one of the locals.
If we look at some potentials: Kenya 12b - 1.2 - 2.2 Billion Barrels (from Report)
Tanzania Pagani - 300 Million Barrels (just a small guess based on recent discovery's) (my guess) Tanzania K-K - 400 Million Barrels (my guess) Tanzania - Eyasi-Wembere (Virgin Ground from what I can find, and combined 8 x larger than Lokichar) - 500 million barrels (My low guess)
Zambia - Block 31 (83%)- 1 barrel - still researching - not awarded Zambia - Block 42 (83%)- 1 barrel - still researching - not awarded Zambia - Block 44 (83%) - 1 barrel - still researching - not awarded
Combined potential 2.4 billion and 3 barrels to 3.4 billion and 3 barrels.
*** Not confirmed numbers...these are only mine, and consider these to be very low, but used to decide how much I am willing to INVEST)****
So work on my low end estimate of eventually shoring up possible reserves potential of 2.4 billion barrels of total resources across all our licenses. Assume our average entitlement leaves us with 40% overall.
We are left with around ~ 1 billion barrels x $1 in ground value = ??
Our MC is 30m $ or so at current prices. Hmmm :)??
Say we actually end up only discovering 33% of that (but remember who our partners are and their success rates), and valuing it at discovered proven value, say $50.00 per barrel....333 million barrels x $50.00 = ??
Our MC is 30m $ or so at current prices. Hmmm :)??
I realize that I may have digressed somewhat, but did want to provide a full and honest answer, best as I could. As you can see.....there is ample...AMPLE room to move in ensuring that our CSR's are widespread, fair, achievable and beneficial to all. Obviously this (CSR) will increase as potential increases and discoveries are/if made and cash is available to support new initiatives.
I am not some left wing, hug-a-tree-a-day radical. But I do think its important not to strip a country of its resources, with no gain to them. (them being the people). Trust and fair play are important to me. It doesn't matter whether that country its Kenya, Tanzania, New Zealand, Australia, or the USA.
Swala Energy Zambia ( 3 x licenses under application for 83% of each) - Same approach, Huge employment, training, up-skilling and investment potential has already been signaled. (researchable) Rightly so! From my reading I have seen this approach as a requirement to successful applications (contractual obligation)..... IMPORTANTLY... We have a head start, through not only saying we will, but being able to demonstrate that WE DO = commitment.(a huge +)
All this, for what might be 1,2, or 3 cents a share, off your portfolio, and as we grow and fairly valued......I will support this all the way to the bank.
What I mean is, say one day your shares fair value is recognized (based on Proven Resources Oil, Copper, whatever) and they are trading at $7.61 (Totally blind example).....well now they are trading at $7.58.....you wouldn't even probably know, as would already be built in :)
See TheDhons posts Re: Africa Oil's rise to glory.
I agree with TheDhon.... You will be very hard pressed to find a Share on the ASX, with such huge potential, Partners, Board and Management proven experience and reliability, Direct exposure to assets, CSR and more....
All the best.
SWE Price at posting:
23.5¢ Sentiment: LT Buy Disclosure: Held