The acquisition marks Otto's entry into the exciting East African Rift Valley, which is historically under-explored but widely accredited as having sinificant exploration potential. The Company has been seeking opportunities in East Africa to complement its well established exploration and production position in the Philippines.
Swala will assign to Otto a 50% working interest, under the terms of the Area of Mutual Interest Agreement signed in January 2011, in the Kilosa-Kilombero Area and Pangani Area PSAs, both onshore Tanzania. The PSAs were awarded by the Government of Tanzania on February 20 2012. The interests will be held be held by Otto subsidiary, Otto Energy Tanzania. The assignment is subject to approval of the Tanzanian Government.
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