18 December 2013, Dar es Salaam – 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.
– Tanzania Daily News