SWALA- Release re administration deal

SWALA Oil and Gas (Tanzania) Plc has issued a statement informing the public about agreement and settlement on share distribution to SWE shareholders. According to the statement published on the company’s website, the terms are:

·         the Company shall settle the outstanding loan agreement between the Company and SWE by paying the SWE Creditors Trust the sum of A$1 million (ca. US$750,000) (the “Settlement Amount”) within 90 days; and

·         Upon payment of the Settlement Amount, and the satisfaction of certain other conditions precedent, the 58.5 million SWALA shares held by SWE shall be transferred to an independent company for subsequent distribution to the current SWE shareholders.

This is the second major announcement since the company had issued a joint statement with OTTO Energy LTD regarding to various claims and disputes between the two companies.

More information about this company can be accessed on: http://www.swala-energy.co.tz/documents/SWALAAGREESLAONSETTLEMENTSHAREDISTRIBUTIONTOSWESHAREHOLDERS.pdf