Tanzania’s Swala Oil and Gas Plc has agreed to purchase Surestream Petroleum Limited’s subsidiary. In return, Swala shall issue Surestream 6,247,154 fully paid ordinary shares in the company, The Citizen reported. The amount represents 6.25% of Swala’s post-acquisition issued share capital.
This will give Swala Oil 100% working interest in Block D in Burundi, which is partly onshore and partly offshore, and covers portions of the northern end of Lake Tanganyika, according to All Africa.
Block D is located along Burundi’s western border with the Democratic Republic of Congo at the northern end of Lake Tanganyika. The licence primarily encompasses the offshore part of the lake, with minor acreage onshore. This region is of particular interest as it lies on the same trend as the multi-billion barrel Lake Albert oil discoveries along the western branch of the East African Rift System.
This news comes as Tanzania is set to become East Africa’s leading country in the exploration of oil and natural gas within the next decade.