Swala Energy (ASX: SWE) is offering investors exposure to highly prospective petroleum plays in East Africa where a number of major oil and gas discoveries have been made recently.

The company is offering 55 million shares priced at $0.20 each to raise $11 million in its initial public offering, with

a proposed listing date on 3 April 2013.

Swala is well positioned to take advantage of the interest in Kenya and Tanzania, where its assets are located and international oil and gas companies have become increasingly interested.

Kenya

The company holds a 50% interest in Block 12B on the eastern edge of Lake Victoria in Kenya.

U.K. major Tullow Oil (LON: TLW) holds the remaining 50% operating interest and has acquired 3,500 kilometres of airborne gravity-magnetic data and a further 2,500 kilometres of low level, detailed magnetic data in 2012.

Block 12B covers about 8,000 square kilometres and covers part of the eastern branch of the East African Rift System.

Notably, the block is close to a number of discoveries including Africa Oil’s (TSXV: AOI) Ngamia-1 and Twiga South-1 oil discoveries.

Tanzania

Swala has a 50% operating interest in the Kilosa-Kilombero Licence onshore Tanzania  that is largely unexplored and covers a 17,675 square kilometres area across a portion of the East African Rift System.

Its subsidiary Swala Oil and Gas (Tanzania) had in 2012 acquired over 13,500 kilometres of combined airborne gravity and magnetic data and carried out remote sensing activities and a field reconnaissance to the licence area.

Based on this, Swala and partner Otto Energy (ASX: OEL) have decided to progress to the second year of the initial exploration period, which will involve the acquisition of 300 kilometres of 2D seismic and geochemical sampling.

East Africa

East Africa has become a hotspot for oil and gas players with Anadarko Petroleum’s (NYSE: APC) Windjammer gas discovery in February 2011 resulting in the identification of a resource of more than 30 trillion cubic feet (tcf) of recoverable gas offshore Mozambique.

Apache Corporation (NYSE:APA) has also made the Mbawa gas discovery off Kenya that it is still evaluating.

Experienced personnel

Swala chairman Ken Russell has over 35 years of oil and gas industry experience and was a founding director of Bounty Oil and Gas (ASX: BUY) and Key Petroluem (ASX: KEY).

He started his career in oil producing offshore fields of Angola, West Africa with Gulf Oil Limited and has participated in the development of a large number of the oil and gas fields in Australia and also in parts of Africa, South East Asia, Brazil, Russia and the United Kingdom through his petroleum engineering and production technology consultancy business.

Exploration director Neil Taylor has over 30 years of experience in the oil and gas business with companies such as British Petroleum and Woodside Petroleum (ASX: WPL).

He has been involved with or led exploration and production activities worldwide, including significant work with the giant gas fields of the northwest shelf of Australia and exploration in Europe, North Sea, South East Asia, Australia and the Middle East.