Swala Energy offered Block 44 in the Republic of Zambia
PERTH, Australia -- Swala Energy reported that its 81.08% owned subsidiary, Swala Energy (Zambia), has been offered hydrocarbon exploration rights over Block 44, in the Republic of Zambia. The process now involves Swala accepting the offer, after which the license will be formally awarded by the Ministry of Energy.
Block 44 lies in the southern part of the country and covers an area of 6,000 sq km on the margins of the Karoo-aged Kariba basin. Gravity and seismic data suggest that the basin has a thick sequence of Karoo-aged sediments.
The basin was explored by Mobil in the late 1980’s and a large volume of 2D seismic data was acquired at the time but no wells were drilled. It is evident from these data that the Kariba basin has a significant sedimentary fill with large structural traps. During the first contract year Swala 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 2 years of the contract should the work conducted not confirm the basin’s prospectivity.
Dr. David Mestres Ridge, CEO, said "We are delighted with the offer of Block 44, which expands Swala’s asset portfolio into a fiscally-stable, potential hydrocarbon region with large energy demand. We have been active in Zambia since late 2011 and regard this award as an expression of confidence in Swala’s technical and financial capabilities. Our Lusaka office has worked tirelessly to secure this first entry license into Zambia and we now await with interest the outcome of the licensing round in respect of Block 31.”