Business
Tanzania oil firm to raise capital from local investors
Investments in oil and gas are considered risky since there is always a chance of not striking hydrocarbons despite the huge investments.
However, once a discovery is made, the gains are massive.
International oil and gas consulting firm Wise Owl values Swala Tanzania at US$7 million, but in the event that the company discovers oil, it estimates the value would jump 34 times to US$239 million in less than three years.
With the East Africa drawing attention due to its huge gas and oil discoveries, it is estimated that more and more companies are likely to raise capital in either debt or equity, to speed up their exploration works or to launch operations, implying that there could be further opportunities for local investors.
Source: The East African
