(MENAFN - ProactiveInvestors - Australia) Otto Energy (ASX: OEL) and Swala Oil and Gas have committed to the second exploration year at their two Tanzanian production sharing agreements after receiving encouraging results from airborne surveys conducted in 2012.
Interpretation of new gravity and magnetic surveys confirmed the likely presence of Tertiary rift basins with a geological setting that may be similar to the recent Tullow Oil (TLW: LON) discoveries in Kenya's Lokichar Basin.
The two companies will now be required to acquire up to 500 line kilometres of 2D seismic across both the Kilosa Kilombero and Pangani PSAs to improve their understanding.
Results from the seismic program will be available before the end of 2013 when the joint venture will decide whether to drill a well in both exploration licence areas.
Otto entered the highly prospective East African Rift Valley in February 2012. The region is historically under-explored but is widely accredited as having significant exploration potential.