Swala Energy (ASX: SWE) and Otto Energy (ASX: OEL) have identified an oil prospect that could host between 12.5 million and 110.5 million barrels of oil in the Kilosa-Kilombero production sharing agreement in Tanzania.
The Kito prospect was identified from the results of the recently-completed seismic survey carried out over a 20 kilometre section of the 80 kilometre long Kilombero Basin.
Independent petroleum advisory firm RISC Operations Pty Ltd has identified two main potential reservoir horizons, ‘Yellow’ and ‘Blue’.
Yellow has a 8% chance of discovery and best estimate (P50) unrisked prospective resources of 29.2MMbbl of oil while Blue has a 9% chance of discovery and P50 unrisked prospective resources of 10.1MMbbl of oil.
Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
The joint venture is obliged to carry out in 2014 either another 2D seismic survey totalling 500 line kilometres or to drill one well.
It is in the process of discussing with the Tanzanian Petroleum Development Corporation the possibility of focussing its 2014 activities over the Kito area with the aim of fast-tracking the prospect to the drilling phase.
Swala has a 32.5% indirect interest in Kilosa-Kilombero while Otto has a 50% working interest.
