Swala Oil and Gas (Tanzania) has shown
its intention to go public by listing its shares on Enterprise Growth
Market (EGM) to boost its exploration drive.
According to the Tanzania Securities
Chief Executive Officer Mr Moremi Marwa, preparations were on top gear
but the exact date would be made available after the shareholders’
approval.
“Swala at the moment is preparing offer document before
seeking shareholders approval,” Mr Marwa said adding “thereafter will
file an application for public offering to CMSA and DSE.”
Tanzania Securities is the issue’s stock
brokerage agent.
The EGM is the alternative equity market that accepts
start-up companies which have no business track record.
The market has
lesser stringent condition for raising capital unlike its sister bourse
the Dar es Salaam Stock Exchange (DSE).
However, since the EGM was
launched last December it is yet to list a single firm on its board.
And if, Swala gets a nod from
shareholders, it might become the first company on board alternative
market.
Last year, Swala, offered 1.2 million US dollars via a private
placement in Tanzania. The money collected was expected to be used for
data on the best drilling locations along its acquired blocks.
The private placement was opened last
August and closes at the end of September 2014, with investors expected
to buy a minimum of 80,000 shares at 390/- per share.
Swala Oil thinks
that it has a higher chance of finding oil in Tanzania, given that its
blocks share the same geographical features as Kenya’s block 10BB and
Uganda’s Lake Albert region, where Tullow Oil has discovered in excess
of 1.2 billion barrels of oil.
The company has been awarded a 50 per
cent operating interest in the Pangani Block in Tanzania. Swala has a 50
per cent equity interest in Pangani and the Kilosa-Kilombero
hydrocarbon exploration licences.
Source: The Daily News, www.dailynews.co.tz, reported by Abduel Elinaza in Dar es Salaam
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