ENERGY COMPANY AWARDED ONE YEAR OIL DRILLING EXTENSION PERIOD IN TANZANIA

Swala Energy Limited (Swala) has recently announced that it has been awarded by the Tanzanian Ministry of Energy and Mining (MEM) with an extension period for oil drilling operations to start on February 20th, 2017 in Kilosa-Kilombero and Pangani licenses, central and northern regions of Tanzania.

The announcement was made in a press release dated August 30th, 2015 available on Australian Securities Exchange’s (ASX) website, where Swala also explained that the one-year extension period awarded is set to be deducted from the four-year extension period that is currently approved and that would have started in February 20th, 2016.

Swala which currently holds a 50% stake in both licenses under a Production Sharing Agreement (PSA) approved by the Tanzanian Government in 2012, explained that since the sounding test’s program was completed in December 2014 and during the first half of 2015 it carried out the data’s interpretation together with the Tanzanian Petroleum Development Corporation (TPDC), there was not time enough to confirm drilling locations and secure long lead-time items by February 2016.

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