Swala Energy Limited (“Swala” or “Company”) advises that, following a review of its assets and operations and as part of
its continuing cost reduction exercise, it has decided to exit from Zambia so that it can continue to focus on its core areas
of East Africa.
To facilitate this action it has entered into an agreement to relinquish control of Swala Energy (Zambia) Limited (“Swala
Zambia”) to local Zambian shareholders. On completion of the transfer of control, Swala shall be the beneficial owner of
less than 1% of Swala Zambia and will therefore have effectively relinquished its interest and control of the Block 44
license in Zambia.
Under the terms of the agreement, the only Swala director on the board of Swala Zambia will resign immediately upon
change of control and Swala Zambia will change its name.
Dr. David Mestres Ridge, Swala’s CEO, said: “Swala has taken this step as part of a strategic decision to exit Zambia and
to focus its resources and activities in its other highly prospective core areas of East Africa. By transferring control of the
company to local shareholders we are able to exit Zambia in a way that remains constructive and provides the local
shareholders with a foothold in the early stages of the oil exploration industry in their own country. We wish them every
success in their endeavours.”