Swala Energy to raise funds for drilling through IPO

petroleum  zoniedude1On completion of the raising, Swala Energy will be likely to have a market value around US$30mn. (Image source: zoniedude1/Flickr)African oil explorer Swala Energy has revealed plans to raise up to US$13mn in an initial public offering (IPO) to fund a drilling campaign in Tanzania and Kenya

The joint lead managers for the offer were Australian firms Foster Stockbroking and Argonaut Securities. On completion of the raising, Swala Energy will be likely to have a market value of around US$30mn.

Swala Energy has picked up stakes in two onshore blocks in Tanzania and acreage bordering Lake Victoria in Kenya.

Its partner in the Kenyan block, Tullow Oil has a market value of US$16bn and a track record of several discoveries in the region.

Swala Energy revealed that its exploration director Neil Taylor and chief executive David Mestres Ridge have previously worked with Black Marlin Energy, who listed on Canada's TSX exchange in March 2010 and was later taken over by London-listed Afren PLC.

With East Africa becoming a new frontier in global energy markets, several Australia-listed companies have picked up acreage in the lightly-explored East Africa region in the hope of finding new reserves. The list includes Beach Energy, Origin Energy and Pancontinental Oil & Gas.

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