Swala Energy awarded Zambia exploration Block

THE ROADHOUSE BOWSER: Swala Energy (ASX: SWE) announced its 93 per cent-owned subsidiary company, Swala Energy (Zambia) Limited, has been formally awarded hydrocarbon exploration rights over Block 44 in the Republic of Zambia.

The company announced in May it had been offered exploration rights over Block 44 and was awaiting the formal award of the rights from the Ministry of Energy.

Block 44 lies in the southern part of the country and covers an area of 6,000 square kilometres on the margins of the Karoo-aged Kariba basin.

 

Location of Block 44 over free-air gravity map. Blue areas indicate sedimentary basins. Source: Company announcement

 

During the first contract year Swala indicated it intends to reprocess and reinterpret the legacy seismic data as part of its work program.

Under the provisions of the award, Swala may withdraw after each of the first two years of the contract should the work conducted not confirm the basin’s prospectivity.

“We are delighted with the award of Block 44 which, as previously advised, expands Swala’s asset portfolio into a potential hydrocarbon region with large energy demand,” Swala Energy CEO Dr. David Mestres Ridge said in the company’s announcement to the Australian Securities Exchange.

“The company looks forward to starting its technical operations and to the active management of this new licence.”

Website: www.swala-energy.com