OREANDA-NEWS. Swala Energy Limited (Swala) is pleased to announce that, pursuant to its announcement of the 10th November 2014, it has agreed with Tullow Oil Kenya B.V (Tullow) and CEPSA Kenya Limited (CEPSA), an affiliate of Compania Espanola de Petroleos, S.A.U., the following equity distribution under the JOA for Block 12B, effective from the 31st August 2014:

Tullow (also the Operator) 50%

Swala Energy (Kenya) Limited (Swala Kenya) 50%.

The transfer of equity back to Swala Kenya is conditional on Ministerial consent, which the parties shall now solicit.

Swala has also agreed with CEPSA to terminate its arbitration proceedings against CEPSA in respect of the Block.

Dr. David Mestres Ridge, Swala's CEO, said "We are pleased at the amicable resolution of the issues that arose in respect of Block 12B, which allows us to focus on the operational development of 12B ahead of a planned drilling campaign in 2015."