I think today will mark another milestone, and hope that the...

I think today will mark another milestone, and hope that the market views SWE development the same way.

Since SWE was last tradable, we have been given TWO pieces of news, 1 being excellent, and looking for the second to be in the same category.

Firstly:

Kilombero News:

Large Structural High adjacent to basin bounding fault, 9 x 4kms wide. Excellent basin depth at +3000m. Direct similarities are now being drawn with Lake Albert (+1.2 BILLION BARRELS), and Lokichar Basin (Closing in on 1 BILLION BARRELS and still climbing).

Several levels of Direct Hydrocarbon Indicators, and Neogene based sediments (Oil bearing at the above compared discoveries)

This follows on from Kilosa, where large- scale structural highs and rotated fault blocks where identified, and Kidatu where more large-scale structures and a Major Intra Basin high. This structure may be as large as 30-60 sqkms. Hydrocarbon traps potential in both.

So we are shaping up with MULIPLTE basins WITH MULTIPLE large traps, Oil Indicators, the right sediment zones and the similarity information to make some sound early opportunity decisions on!!

Secondly:

Cash Raising: As we do not know the exact details I will say what I’m looking for:

a. A Premium to current price. (Higher the better. 10%+ would be excellent news)

b. Who is involved; So as to gauge the term of their investment. They’re future input to SWE’s growth and publicity value.

c. Hopefully unsolicited request to participate. Strong signal if it is.

d. Is there other interest to taking a stake in SWE? (probably confidential, but a generalisation would be another strong indictor)

e. Intention for use of funds raised.

f. NOT to raise too much right now…so we don’t raise TO MUCH TO EARLY. (Wait for CPR’s & other license awards, Eyasi & Zambia, which are due in short term)

My logic on this…If we get xx% premium, you can bet $1 on the nose that those involved see far greater value in the price moving forward.

On the horizon we also have still to come in the short term:

Expected/Anticipated News: (no particular order)

Pagani Seismic (x2 for Mvungwe & Moshi Basins)…Not sure if we’ll get two initial interpretations or 1 after both are complete, from wording taken from Kilombero announcement)

Eyasi License

Zambia x 3 potential licenses. (award of 1= great, 2= awesome, 3= bloody hell :)

CPR reports…Kilombero and Pagani (or one combined?)

Intentions to commence in Kenya 12B activities

New company presentation

SOGTL listing with hopefully a nice bounce in its MC, resulting in a boost to our MC (plus cash we get access to as a result of the listing)

Other Events/Activities….example only…we may not apply for another license; we might farm in to an existing license again, just as an example.

Moving forward:

Even writing this, I am surprised to still see SWE languishing at below its IPO listing price. I think the longer this level is maintained, it only leads to an indication that a short sharp adjustment is due.

The Board, Management, Staff and Contractors have achieved so much and more importantly, got essentially the best results you could hope for and results many exploration companies in their early stages, could only hope for.

We are some 8 months down the track……Many new companies out there, haven’t even had breakfast, yet after 8 months, and we are serving dinner, but yet to say grace….

Whilst we wait to be a name in our own right, and do not require the assimilations to Africa Oil any longer….those similarities cannot be underestimated from an investors point of view…(opinion).

Having the potential for 1.2 to 2.2 Billion barrels in 12B alone is just too tempting for me….and then add in the success of the K-K seismic & licenses on the table….and think 19.5 cents, last price….?? hmmm

I was very pleased to see both the latest announcements drop, without any spikes in the price….This indicates tight ship….Not even the brokers had a sniff of this coming I’d hazard a guess to. HCopper is such a small part of the investment market, and a great place to share views, concerns, hopes and bounce ideas at progression…but still….I think SWE will be attracting a lot of attention from people, companies, organisations, broker and institutes, that have never even heard of HCopper, let alone read it. (therefore, we don’t know they are interested…and of course, they will want to keep they’re interest quiet anyway….until they are ready to act)

Now: When those groups act if they do, will be the question…..But for me…being in before any potential of them acting is comforting.

I would love to see Argonauts bring out some report for their clients as they are the lead broker?

If anyone bothered to research the Tanzanian and Zambian in house management of Swala subsidiaries I hope you were as impressed as I was, not only with their qualifications and experience, but their potential to bring in investment, and bring positive influence and credibility to the Team. SWE’s strategy in how they are developing, as national companies, offering the ability for local investment is a commendable approach.

Our ownership:
32.5% of Tanzania, 50% of Kenya 12B, and 83% of any Zambia License awarded, stands us in an excellent position for future options.
SWE can only be valued on the Big Picture….and we are starting to look like a Picaso (hard to interpret, but hugely valuable).

I have started saying,…we don’t know, what we don’t know….I just bet that Management has plans/developments/applications and/or other initiatives we are not privy to at this time.

Either regarding our existing assets, or possibly left field items? Their performance to-date just gives me that vibe….other good things are afoot I reckon.

As we stand right now….before update’s on Pagani…we are looking extremely positive.

Our existing PSA’s for Tanzania are on far better terms than the 4th Round of licenses will be…..This must equate to a better long term price for SWE’s (SOGTL’s) assets.

Inclusion of Eyasi is heavily discounted (OPL research), and award of that License should see SWE’s value increase accordingly.

In regard to comparative Companies, we have a very small amount of shares on issue….and I see this as a huge benefit moving forward. Proving value I our assets will hopefully ensure this stays relative to value.

I am sure we have all seen the following:
Crap Management & Crap Assets
Good Management & Crap Assets
Poor Management & Great Assets

WE ARE LUCKY enough to have:
Excellent Management & Excellent Assets……19.5cents, you decide :)

Leverage:

Huge infrastructure developments are underway in regard to Kenya and Tanzania, and we will gain huge leverage from these initiatives of Multinational cooperation and Partner exposure.

Tullow also will have compiled huge amounts of data knowledge and experience from drilling Kenya which can be included in 12B studies, hugely reducing any risk.

Our performance to-date, in regard to obtaining Eyasi, must surely be looked on positively and IMHO the awarding of Eyasi is only a formality and must be close. Gaining a tick in the box from the Tanzanian Government for the professionalism of the work being carried out in Kilosa-Kilombero was really the confirmation for me, that they like the way SWE is doing business. It certainly won’t have a negative bearing on our application, hence my increased confidence. (You just don’t get invited to exclusive negotiations without some credibility and a great team behind you and we are/have just proven we have the skills and knowledge to get the job done??)

I just want to say, that the Board and Management have done an exceptional job to-date. They have kept us informed, they have done things when and as stated, and we have received results far out-performing my expectations, but I am confident, in line with the huge effort everyone is putting in.

Supported by an obvious dedicated staff team, and excellent in country experts I see no indications that we cannot expect the same in the future. Manage the Assets and the Assets will (are) speaking for themselves.

Well done & Thank you all concerned!

There is so much more I’d like to write as there is other positive aspects….but would like finish on ….


THINK BIG PICTURE.




Disclosure as always, any company….DYOR, This is my opinion and perception of where we are…and where we are going :)