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Swala Oil Will Not Extend Tanzanian Deal Deadline

Tanzanian-incorporated Swala Oil & Gas, a subsidiary of the Australian concern Swala Energy that operates the onshore Kilosa-Kilombero fields, has  announce on 16th July that it will not extend the deadline to complete
the previously announced investment by Swala in PAE PanAfrican Energy Corporation, a subsidiary of Orca Exploration Group Inc. (“Orca”), of up to US$130 million (the “Swala Investment”) for any specific time period.
The extension pertains to tranche 2 and tranche 3 and does not impact tranche 1 which closed on January 16, 2018. The decision was taken in consideration of the
uncertainty in the timing of the regulatory approval of Swala’s prospectus and listing application in Mauritius. The decision not
to extend the deadline does not terminate the Swala Investment and Orca continues to support Swala’s efforts in closing its
financing. However, Orca may terminate the balance of the Swala Investment at any time.
Dr. David Mestres Ridge (Swala CEO) said: “Swala and Orca will continue to complete the process started earlier this year, but
do not believe that either company is served well by agreeing to timelines that are outside of their control.
The process inMauritius is advancing at creditable speed but oil and gas is a new investment area and the regulator has spent time thoroughly
understanding the Swala prospectus. Our understanding is that the prospectus will be reviewed by the Executive Committee of
the SEM this coming week and are already engaging with Tanzanian and overseas investors in anticipation of an early closing
Updated: July 18, 2018 — 2:06 PM
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