swala drill dates

Several folks have been debating on when we are likely to see our first spud. The following are my thoughts:

BLOCK 12B KENYA
- PSC signed on 16th February 2012

Requirements
- Year 1: Airborne Gravity, Magnetic surveys, re-processing and re-interpretation of historical data, and field work
- Year 2: 700km of 2D Seismic (This was later negotiated with the GoK and reduced to 350km). Due to commence Q1 2014
- Year 3: Drill 1 well

So the latest we can expect a well in Block 12B is February 2015.

PANGANI BLOCK TANZANIA
-PSC signed on 20th February 2012

Requirements
- Year 1: Airborne Gravity, Magnetic surveys, re-processing and re-interpretation of historical data, and field work
- Year 2: 200km of 2D seismic. This is currently underway.
- Year 3/4: Drill 1 well.

After the 2nd year of the Initial Exploration Period, Swala may opt either to drill a well in Year 3 or undertake further work to firm up the prospects and drill in Year 4.

The latest we can expect a well in the Pangani Block is February 2016.

KILOSA KILOMBERO BLOCK TANZANIA
-PSC signed on 20th February 2012

Requirements
- Year 1: Airborne Gravity, Magnetic surveys, re-processing and re-interpretation of historical data, and field work
- Year 2: 200km of 2D seismic. This was recently completed where Swala discovered that the Kilombero Basin is the most prospective basin in the block.
- Year 3/4: Drill 1 well.

After the 2nd year of the Initial Exploration Period, Swala may opt either to drill a well in Year 3 or undertake further work to firm up the prospects and drill in Year 4.

The latest we can expect a well in the Kilosa Kilombero Block is February 2016.

EYASI-WEMBERE BLOCK TANZANIA
I would expect the PSC to be structured in the the same way as the other two PSC's in Tanzania. This is in terms of the exploration periods, and not in terms of the financial requirements.

Thus, if the block is awarded before the end of 2013, we will see a well in the Eyasi-Wembere Block before the end of 2017.

SUMMARY
My opinion is that we are likely to start off our drilling campaign with 3 wells in 2015.

Please note, however, that companies can renegotiate PSC's with the Governments in question and extensions are regularly granted.

ALL THE BEST.