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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