swala consolidated information

Swala Energy Consolidated Details:

Below taken from various sources, every attempt for up-to-date accuracy has been made, although always DYOR.
I have attempted to give us all the updated details in one post to make it a little easier. (thread can be checked for links, as the Swala thread still isn’t that long )

Each person needs to apply there own interpretation and assumptions (for full appreciation of SWE), as this post only details facts and my assumptions at the bottom in the conclusions paragraph.

Successfully listed IPO @ 20 cents, April 2013
Fully diluted at ~135 million shares with approximately 50% in escrow until 2015.
Exceptionally high percentage of Senior Management holdings. With Dr David M-Ridge increasing his holding recently (June 13)
Top 20: http://www.asx.com.au/asxpdf/20130417/pdf/42f9hsz8b33q3n.pdf
56% of shares held by Top 20.
Experience Management in African Region.
Oil Seeps around our acreage.
High levels (and prices) of Corporate activity for regional prospects.

Early Broker reports by Fosters had (conservative IMHO) target of $0.40 cents. (Target Catalysts being meet and have already been met, but does not include recent developments, so I assume $0.40 is now well and truly, an outdated valuation)
Major developments (***) reached regionally and directly by Swala since listing.

(***) Appointment of Mr Peter Grant (non-exec Director)

(***) Tullow selling down some assets to focus on EARS regionally.
(***) Tullow and Africa Oil send in more drill rigs to the region due to successes to date.

Total Regional estimates for the EARS reach as high as 27 Billion Barrels of Oil and 441 TCF Gas.
(***) Planning of Major Pipeline through Kenya and Tanzania underway by Governments and Majors.


Kenya
Block 12b
Equity held via Swala Energy Kenya (SOGTL) (100% owned by Swala Energy)
SOGTL set to list on EGM (Enterprise Growth Market) Dar es Salaam Stock Exchange in second half of 2013.
Have a 50% equity, partnered with Tullow Oil
Tullow is the operator.
4,000 square kilometres (Gross 8,000 square kms)
Nyanza Rift, Part of the East African Rift System, off shoot of Eastern Branch.
2-3 kilometres thick of sedimentary basin
(***) Discoveries nearby in Rift System by Tullow Oil and Africa Oil (Ngamia and Twiga South) flowing 3200 BOPD, likely to increase to 5000 BOPD.
Previous year 1 costs were borne by Tullow.
Oil seeps and Oil contamination of water wells.
Large discovery across the lake in on the Ugandan side. (2-4 Billion Barrels, Lake Albert Graben Play)
(***) Further drilling and testing underway nearby on Sabisa Well (Ethiopia) and Etuko-1 (Kenya).


Tanzania
Pagani
32.5% interest (Holding interest)
Equity Held via Swala Energy Tanzania (65.13% owned by Swala Energy)
Swala Operator
Otto is our partner
5,576 square kilometres (Gross 17,156 kms)
2 significant sedimentary basins highlighted by airborne gravity-magnetic surveys carried out.
(***) 200kms 2D Seismic set to commence
Continuation of rift to off shore areas with Oil and Gas discoveries off shore.

Kilosa-Kilombero (K-K)
32.5% interest (Holding Interest)
Equity Held via Swala Energy Tanzania (65.13% owned by Swala Energy)
Swala Operator
Otto is our partner
5,745 square kilometres (Gross 17,675 kms)
(***)300km 2D Seismic set to commence
3 significant sedimentary basins highlighted by airborne gravity-magnetic surveys carried out.
Vegetation distress of note 1800 metres in diameter and coincides with hydrocarbon seepage (possibly related to Gas chimneys)
Large estimate Gas Discoveries off shore, nearby.


(***)Eyasi Block:
Swala invited to exclusive negotiations for this block by Tanzanian Government.
For 32.5% interest.
Potential for 4 sedimentary basins, each 3,000 metres thick.
Each of the 4 basins double the size of Tullows Lokichar Basin Discovery (Ngamia and Twgia-South)
Each basin is ~ 2,000 square kms
This block runs between our Kenya and Other Tanzanian assets, alone the EARS, Eastern Branch.


(***) Zambia:
Applications for blocks 31, 42 & 44
Via Kainsha Energy, Possibly Swala Energy Zambia now? (84.11% owned by Swala Energy)
83% interest of blocks if successful.

Block 31:
Indications of working Hydrocarbon System reported in open literature.
Past 2D seismic indicate potential for Large Structural traps.
Described as Frontier Opportunity.
Comprises part of Lake Tanganyika where further Oils Seeps reported.

Block 42:
Karoo-age Basins
Drilled in 1980’s, but now interested as Source would be deeper. These deeper structures were not tested.

Block 44:
Karoo/Kariba Basins
Seismic done in 1980’s by Mobil, but no drilling undertaken.
Data from Kariba indicates significant sedimentary fill and structural traps.



My Conclusions:

I believe we are trading well under fair value given some similar company’s out there, by simple comparison alone.
(no desire to cross promote)

Other African based Companies are experiencing price appreciation, and our time will come. News as highlighted by other posters will draw attention to us.

Reputable organisations are starting to run the Swala story, which some similar companies are not lucky enough to be included in….why?

We have had no road-shows yet to raise awareness, the early starters are the ones doing their own research.

Our land positions, and potential make Swala a standout for me.

Additions (Potential additions) to our positions are extreme since listing.

Regional developments & discoveries in the EARS nearby substantially derisk our opportunities.

Our partners are extremely experience in the region.

We have cash for our requirements planned.

We are schedule for a drill in first half of 2014 (Pagani or K-K)

Low estimated drill cost ~3 million $$.

Saleable Shares available short term, further lessening as 2014 & drilling approaches (hopeful price appreciation)

The very high levels of ownership act to also collectively de-risk each other…1 good strike is all we need for defined and absolute rerating.

Further confirmations from regional activity will only increase the interest in Swala. At these prices, I can see (at some stage), institutions deciding that enough information is enough and decide to take a position. Couple this with availability of shares, and again this may point to a good raise in due course.

Swala since lows, has displayed resilience, and is getting back to listing price on good volume and doing so in a controlled manner, where I am inclined to think that a sustainable appreciation is achievable medium to long term…..Investment….and that accumulation has taken place to-date.

Whilst I view SWE as a Medium/Long Term prospect, it is interesting to consider the possible short term implications of recent developments...

A Price of:
20 cents represents a ~5% increase on 19 cents.
21 cents represents a ~10% increase on 19 cents.
25 cents represents a ~32% increase on 19 cents.
Not a bad return in my book and still a long way from fair pre drill value, considering assets...IMHO!

Pre-spud value: Far to hard for me to call, but not any of the above prices :) IMHO.

Swala should be considered a speculative play.
It is paramount that potential Buyers and Sellers DYOR, as this is for information only.