Tata farm out

Must be getting close.

http://www.dailynews.co.tz/index.php/biz/48577-swala-oil-farm-out-deal-awaits-regulator-s-nod

Swala Oil farm-out deal awaits regulator's nod

Published on Friday, 21 August 2015 00:27

SWALA Oil and Gas is awaiting Fair Competition Commission approval for its plans to farm-out of 50 percent of its interests in the Kilosa-Kilombero and Pangani licenses in central and northern Tanzania, respectively to India's Tata Petrodyne Limited (TPL).

According to a recent statement from its parent company, Swala Energy Limited, the company has received a no objection notice of its plans from the Ministry of Energy and Minerals.

With the receipt of consents from the Tanzanian Petroleum Development Corporation, the Tanzanian Revenue Authority and now from the Ministry of Energy and Minerals, the Company is awaiting only the consent of the Fair Competition Commission (FCC).

"The rapid approval by the Tanzanian regulators to the farm-out of the SOGTP licenses illustrates their desire to encourage activity in this important economic sector.

We are confident that the FCC consent shall be received soon, which shall allow TPL to join the license joint venture ahead of the planned drilling campaign."

Dr David Mestres Ridge, Swala CEO, is quoted in the statement as saying. Swala Oil and Gas entered into a farm-out agreement with TATA Petrodyne Limited (TPL) (wholly-owned subsidiary of the TATA Sons of India) for a proposed transfer of 25 per cent participating interests in each of the Pangani and Kilosa Kilombero production sharing agreements (PSAs).

Upon receipt of the government consent and subject to the provisions of the farm-out agreement, Swala and TPL shall sign deed of assignment to transfer 25 per cent participating interests in each of the Pangani and Kilosa Kilombero PSAs to TPL.

The transfer is in exchange for 1.79 million US dollars towards the past costs and up to 2.1 million US dollars future costs of drilling a commitment well in the Pangani licence, and 3.9 million US dollars towards the past costs and up to 2.5 million US dollars future costs of drilling a commitment well and up to a further 1.0 million US dollars costs of drilling a second well (contingent) in the Kilosa-Kilombero Licence.

According to its recent financial statement, the company incurred a net loss of 932,398 US dollars for the period that ended in June 30, 2015 and has a future work commitment cost of 6.0 million US dollars.