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SWALA Oil and Gas Tanzania Limited ( SOGTL)
has identified a potential oil field in the
Kilombero basin , Morogoro Region , according
to results of a seismic survey recently
conducted by the firm.
Swala said in a statement issued over the
weekend that the results at the potential oil
field known as “Kito ” brings the firm to the
next stage of the exploration process and
might drill a well next year .
“We are very pleased with the fact that the
seismic work in Kilombero identified such a
significant structure as Kito.
We are also encouraged by the fact that with
only one quarter of the basin surveyed and
additional leads that were not addressed by
RISC’s assessment , there remains
considerable potential within the Kilombero
basin that the joint venture will commence
addressing in the coming year ,” the Swala
Chief Executive Officer , Dr David Ridge said .
RISC Operations Pty Ltd (‘RISC’), is an
independent petroleum advisory firm, which
has completed their review of the resource
potential of the Kito prospect in the Kilombero
Basin.
Dr Ridge said that under the terms of the
Petroleum Sharing Agreement ( PSA ) between
SOGTL, the Tanzanian Petroleum Development
Corporation ( TPDC ) and the government the
company is obliged to carry out in 2014 either
another 2D seismic survey totalling 500 line
kilometres or to drill one well.
He said Swala was in the process of
discussing with TPDC on how to fast track the
process of drilling a well . Swala has direct 50
per cent interest in and is operator of , the
licence. Net unrisked prospective resources
allocated to the Swala indirect interest range
from 19.2 million stock tank barrels ( mmstb ) to
169. 6 mmstb .
“The Kito prospect was identified from the
results of the recently-completed seismic
survey that Swala and its joint venture partner,
Otto Energy ( Tanzania) Pty Ltd (‘Otto ’) carried
out over a 20km section of the 80km-long
Kilombero Basin,” Dr Ridge said.
As previously reported , initial results also
suggest the presence of a thick sediments of
about 25 million years. The age of the
sediments appears to be similar to that of
sediments observed in the now proven oil
basins of Lokichar ( Kenya) and Lake Albert
( Uganda) , where Africa Oil and Tullow Oil
have had significant success .
Over 2 billion barrels of oil have been found in
the Lake Albert area of Uganda , in the western
branch of the East African Rift System ( EARS ) .
Recently oil was found in the Lokichar Basin in
Kenya on the western branch of the EARS .
The discoveries have provided compelling
evidence that the presence of oil in the rift
systems is geographically more extensive than
previously thought. SOGTL in September
announced that it would be selling its shares
at 500/ - each after listing on the Dar es
Salaam Stock Exchange ( DSE ) on Enterprise
Growth Market( EGM ) window .
The company is determined to list on the Dar
Bourse by early next year , becoming the first
oil company in the country to list on the
bourse.
EGM is an equity market specifically for start-
ups as well as Small and Medium Enterprises.
With the liberalisation of the economy ,
entrepreneurship is expanding rapidly , with
the number of SMEs increasing .