Australian oil firm, Swala Energy Limited, has appointed London-based FirstEnergy Capital LLP as financial adviser to the Company as it mulls over sale of some of its interests in East Africa.
The appointment came following interests to review the company’s assets available for farm-down. FirstEnergy will now manage the process with a view of reviewing the company’s options to maximise the long-term value of the its portfolio, including a potential merger or sale of the Company.
“The completion of our seismic survey programmes in December 2014 and the clear indication from them of a large number of significant leads and prospects within our licences make this an opportune time to review the Company’s options to maximise value from its portfolio ahead of the Company’s planned 2015 drilling campaign,” Swala CEO David Mestres Ridge, said in a statement obtained by Ventures Africa.
Ridge expressed happiness over the new appointment, noting that FirstEnergy’s expertise in providing advisory services to the oil and gas industry is internationally recognised. This will help the company make the right decisions at this crucial time.
Swala expects the review of its assets by interested companies to be concluded in the coming months. It however and advised shareholders that the expressions of interest received to date are highly preliminary, and as such, there is no certainty that any offer will be made, or sale concluded.
The company is one of the explorers that have decided to remain in the nascent East African oil industry, despite falling global oil prices, which has made firms globally shut down operations. Oil has slumped from over $100 per barrel to the current $43.25 per barrel in less than a year, but firms in Kenya have promised to continue exploration.
Swala’s holdings are predominantly in the East African Rift System with a total net land package in excess of
18,800km2 in Kenya, Tanzania and Zambia. New discoveries have also been announced in a number of licences along this trend, including Ngamia, Twiga and Etuko.
