SCL - Sacoil - Awarded major oil exploration block 3, Albertine graben, Release Date: 25/06/2010 15:43:01 Code(s): SCL
SCL - Sacoil - Awarded major oil exploration block 3, Albertine graben,
Demoractic Republic of the Congo and further cautionary announcement
SACOIL HOLDINGS LIMITED
(formerly SA Mineral Resources Corporation Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
Share code: SCL ISIN: ZAE000127460
("SacOil" or "the company")
SACOIL AWARDED MAJOR OIL EXPLORATION BLOCK 3, ALBERTINE GRABEN, DEMORACTIC
REPUBLIC OF THE CONGO AND FURTHER CAUTIONARY ANNOUNCEMENT
Shareholders of SacOil ("Shareholders") are referred to the circular to
Shareholders dated 24 October 2004 regarding, inter alia, the reversal of its
interest in South Africa Congo Oil Company (Proprietary) Limited ("SacOil
(Proprietary) Limited"), a company holding oil concession rights in the
Democratic Republic of the Congo ("the DRC").
Shareholders are furthermore referred to the announcement and circular dated 24
October 2008 regarding the acquisition by SacOil of the entire issued share
capital of Sacoil (Proprietary) Limited in exchange for the issue of 474,445,714
SacOil shares of which 270,400,000 SacOil shares related to Block 3, Graben
Albertine ("Block 3") and 204,045,714 SacOil shares related to Block 1, Graben
Albertine ("Block 1").
This transaction was approved by Shareholders in general meeting on 21 November
2008 subject to the issuance of Presidential Ordinances approving the Production
Sharing Agreement pertaining to Block 3 (the "Block 3 Production Sharing
Agreement") and the Production Sharing Agreement pertaining to Block 1.
The board of directors of SacOil ("the Board") is pleased to announce that on 18
June 2010, the Honourable President Joseph Kabila, President of the DRC, and the
Honourable Adolphe Muzito, the Prime Minister of the DRC, signed Presidential
Ordinance 10/042 approving the Block 3 Production Sharing Agreement as required
by the laws of the DRC. The Ordinance was gazetted in the Journal Officiel de la
Republique Democratique du Congo on 22 June 2010.
On 18 June 2010 the President and Prime Minister of the DRC further signed
Presidential Ordinance 10/043 approving an amendment of the Block 3 Production
Sharing Agreement (the "Proposed Amendment"). The Board has not had sight of the
Proposed Amendment as of date hereof. The Ordinance was gazetted in the Journal
Officiel de la Republique Democratique du Congo on 22 June 2010.
Subject to the Proposed Amendment, the signing and publication of Ordinance
10/042 perfects the rights of SacOil (Proprietary) Limited under the Block 3
Production Sharing Agreement.
The Competent Person`s Report on Block 3 dated 11 July 2008, reflected a net
present value of the prospective resources (using the cash flow method and based
on a projected oil price of $60/barrel and on an export only premise) of
approximately US$233.7 million (approximately R1.8 billion at a USD/ R exchange
rate of 7.50) for SacOil (Proprietary) Limited`s interest in the concession.
Subject to the provisions of the Block 3 Production Sharing Agreement, SacOil
will commence its work program on Block 3. SacOil will continue to work and
cultivate good relations with the Government of the DRC and Cohydro (the
National Oil company in the DRC) to contribute towards the development of its
nascent oil and gas resources.
Further SacOil and the consortium led by Divine Inspiration (Pty) Limited and
SacOil (Pty) Limited (the "Consortium") will continue to engage the Government
of the DRC and other parties constructively with regards the issue of title to
Further cautionary announcement
Shareholders are advised that SacOil is currently in discussions which could
have a material effect on the price of the Company`s securities.
Shareholders are furthermore referred to the further cautionary announcement
dated 21 May 2010 and are advised that the company is still in the process of
finalizing the restatement or restructure of the agreements relating to the
acquisition of the Democratic Republic of the Congo Oil Concessions (the
"Restructure") and the pro forma financial effects of the acquisition of a 55%
participating interest in the exploration permit for the gas potential chaal
permit area("the Chaal Gas Permit Transaction").
Accordingly, Shareholders are advised to continue to exercise caution when
dealing in their SacOil securities.
A further announcement setting out the Restructure; the pro forma financial
effects and the salient dates and times of the Chaal Gas Permit Transaction will
be made in due course.
25 June 2010
Barnard Jacobs Mellet Corporate Finance (Proprietary) Limited
Corporate financial advisor
Lonsa (Proprietary) Limited
Corporate Legal advisor
Date: 25/06/2010 15:43:01 Supplied by www.sharenet.co.za
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