Under the terms of the Facility 750,000 Convertible Notes will be issued subsequent funding of up to US $750,000 per tranche is available at Swala’s request and may be drawn down every 40 calendar days under the Facility up to US$2,250,000.

 

The Company also confirms that it has raised AU $75,000 from private investors for the issue of 543,475 fully paid ordinary shares.

 

The purpose of the issue according to Swala will be to fund additional near term work on the Company’s licences in Kenya and Tanzania and general working capital.

 

In particular to be used for additional work (particularly in Block 12B), basin modeling work and long-lead items for drilling in Tanzania, business development and general administrative expenditure.

 

Among drilling set for 2015 includes a well in block 12B where the company has identified a series of ten leads and prospects from which one (‘Ahero –“A”’) has been selected as a drilling target to be drilled in the second calendar half.

 

In Tanzania the company is in the process of interpreting data from a 200 km 2D seismic acquired over the Moshi Basin in the Pangani licence with preliminary interpretation of these new data allowing it to identify a number of potential structural leads which, after final processing of the field data, are expected to define potential targets for a 2015 drilling programme.

 

Swala has a 29.2% net participating interest in the Pangani license, 29.2% net participating interest in the Kilosa-Kilombero license both in Tanzania and a 25% net participating interest in Kenya’s Block 12B.

Source : OIL NEWS KENYA