Swala Oil & Gas (Tanzania) has announced it is looking to raise $120 million to finance operations in East Africa.The company says it has involved investment firm, Exotix Partners LLP, to place corporate bonds of about $120 million to fund material transactions after it recently acquired an exploration block in Burundi.

“We took the decision earlier this year to balance our asset portfolio and to expand our area of operations, and we are in reasonably advanced discussions aimed at achieving those objectives. Engaging Exotic, with its unmatched experience in raising funds for African projects, is a step towards completing that transaction. As an active supporter of the development of the Tanzanian capital markets, Swala will also invite interested Tanzanian institutions, along with other investors to participate in this Exotic placement,” David Ridge (photo), Swala Energy’s Chief Executive Officer, said.

The Dar es Salaam Stock Exchange-listed company acquired oil exploration interests in Block D Burundi from Britain’s Surestream Petroleum Ltd and plans to increase its portfolio in other parts of Africa.Swala holds 50% interest in Block 12B in western Kenya and 25% interest in the Kilosa-Kilombero and Pangani licences in Tanzania.

Ridge said Swala would seek an extension for the drilling of the onshore Kito-1 exploration well in Kilosa-Kilombero this year after delay in getting permits, the East African reports.

“Events caused us to miss the weather window within which we could have drilled Kito. Health and safety considerations were paramount in deciding to postpone the well to 2017,” Ridge added.

Anita Fatunji