Thursday, May 7, 2015

Kisumu oil firm planning listing on the London Stock Exchange Exchange

Money Markets

By GEOFFREY IRUNGU
In Summary
  • The firm is currently evaluating offers for a stake it has put on sale.

Swala Energy, currently exploring for oil near Kisumu, plans to list on the London Stock Exchange (LSE) in the second half of the year.
The company, which is also listed on the Australian Stock Exchange, has already appointed an advisor for the LSE alternative investment market (AIM) segment listing.
“Swala is seeking a dual listing on the Alternative Investment Market (AIM) of the London Stock Exchange. This process has been designed to happen after the general election that takes place in the United Kingdom in May 2015, with a proposed listing on AIM taking place in the second half of 2015,” said Swala Energy in a statement.
The firm is currently evaluating offers for a stake it has put on sale. In January it announced it was seeking to sell some or all of its assets.
“The company has received interest from a number of credible parties. Discussions with these parties are currently continuing and the company looks forward to being in a position to provide shareholders with further details in the near term,” said Swala Energy in an update.
Exploration
It joins a host of oil firms currently attempting to sell stakes to raise cash for further exploration, testing of existing wells or exploitation.
Even as the firms are raising capital, they are also looking critically at their costs. Swala Energy said it was reviewing its costs in view of the falling oil prices. It is moving some of the corporate functions from its Australian offices to East Africa.
“The fall in oil prices has prompted many companies to review their operating costs and Swala is no exception. Through the quarter, the company identified a number of potential cost-saving initiatives throughout the group and has commenced implementing them,” it said.
“This will allow Swala to save significantly on its budgeted travel and accommodation costs but also to have a more tangible presence in its countries of interest thereby allowing closer contact with government agencies and other oil and gas companies operating in the region,” added the firm.

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