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Scl - Sacoil Holdings Limited - Commencement Of Exploration Work Programme On

Release Date: 30/09/2010 12:51:01      Code(s): SCL
SCL - SacOil Holdings Limited - Commencement of exploration work programme on   
Block 3 of the Albertine Basin, Lake Albert in the Democratic Republic of the   
Congo                                                                           
SacOil Holdings Limited                                                         
Incorporated in the Republic of South Africa                                    
Registration number: 1993/000460/06                                             
Share code: SCL                                                                 
ISIN code: ZAE000127460                                                         
("SacOil" or "the company")                                                     
Commencement of exploration work programme on Block 3 of the Albertine Basin,   
Lake Albert in the Democratic Republic of the Congo                             
SacOil, the Pan African independent upstream oil and gas company, is pleased to 
announce it has commenced its exploration work programme on Block 3 of the      
Albertine Basin, Lake Albert in the Democratic Republic of the Congo ("Block    
3").                                                                            
SacOil`s announcement follows its completion, on Monday, 20 September 2010, of  
its acquisition of 50% of SacOil (Pty) Limited, the signatory to the Block 3    
Production Sharing Agreement.                                                   
Appointment of exploration management                                           
SacOil has appointed Mr Glen Penfield as its Senior Exploration Advisor in      
respect of Block 3. Glen, has more than 30 years of professional experience in  
hydrocarbon and mineral exploration, geophysical contracting, project management
and business development in more than 35 countries but primarily in Africa and  
specifically within the Democratic Republic of the Congo ("DRC"). Glen is both a
geologist and geophysicist. He has participated in a number of significant oil, 
gas, and mineral discoveries around the world during a career with companies    
such as Western Atlas International, Fusion, and ConocoPhillips, and consultancy
with PEMEX, the Mexican NOC among many others. Glen has worked throughout Africa
on multiple projects in 18 countries, publishing on 6 different African         
countries. He is a noted mentor of scientific talent, having supervised or      
trained a number of now prominent geoscientists, many during his eight year     
tenure as Manager of Integrated Interpretation Services at the Western Atlas    
International group of companies.                                               
Work programme                                                                  
SacOil is utilizing a `Faster, Better, Cheaper` approach to exploration in Block
3. What this means specifically is that at the outset of SacOil`s campaign,     
SacOil will make the fullest use of low cost airborne geophysics and remote     
sensing technologies, guaranteeing that SacOil`s basic studies will be conducted
over the entire license area in a rapid but comprehensive manner to allow       
passing to seismic program delineation of leads into prospects in a thorough and
systematic fashion with no `backtracking`.                                      
SacOil is currently tendering (tender closing date 8 October 2010) for a high   
resolution airborne gravity and magnetic survey which will begin in 4Q 2010 or  
1Q 2011 and will start with a `Quick Look` grid of the entire license area and  
key adjoining ground truth areas to be followed immediately by a very high      
resolution, tight grid, infill survey over the most promising areas.  Gravity   
data particularly have proven to be of extraordinary value in defining the      
details of The Albertine Graben`s geological structure. SacOil believes its     
approach will result in shorter timelines and better decisions from the outset. 
The high density contrast between the pre-cambrian basement rocks on the rift`s 
margins and the low density tertiary and possible pre-tertiary sediments        
overlying the basement allows gravity data to be used to great effect in        
identifying leads for seismic detailing as well as defining hydrocarbon source  
rock `kitchen` areas. Our initial survey will also rapidly address the issue of 
CO2 associated with igneous bodies, definitively showing (we expect) that this  
risk element is limited to the Turaco area in Uganda.                           
SacOil is simultaneously creating a catalog of high resolution satellite and    
aircraft imagery of Block 3 to aid work in surface geology, planning, and       
environmental assessment.                                                       
SacOil is also planning on contacting and liaising with university researchers  
and non governmental organizations ("NGOs") which may have ongoing studies in   
the Block 3 license area or adjoining portions of the Semliki River Valley and  
Delta.                                                                          
Funding                                                                         
SacOil has already raised R48 million (some US$7 million) by way of general     
issue of shares for cash from STANLIB Asset Management Limited ("STANLIB") and  
Metropolitan Asset Managers Limited ("MetAm").                                  
STANLIB was established in 2002 through the merger of Liberty and Standard      
Bank`s asset management, wealth management and unit trust interests. STANLIB is 
wholly-owned by the Liberty Group, of which the Standard Bank Group is a major  
shareholder, together with a diversified spread of BEE organizations dedicated  
to the advancement of the previously disadvantaged. STANLIB has over 400 000    
clients and a presence in eight African countries. STANLIB has a proud record of
being one of the top investment managers and the leading unit trust company in  
South Africa with in excess of R330 billion (some US$45 billion) of assets under
management and administration.                                                  
Metropolitan Asset Managers is a wholly owned subsidiary of Metropolitan        
Holdings Limited ("Metropolitan"), an empowerment holding company listed on the 
JSE Limited.  MetAM initially functioned as the investment arm of Metropolitan  
managing internal funds and a range of collective investments. In 1997, it      
became a separate business unit and in 1999, was set up as a corporate entity   
with its own board of directors. MetAM is one of the large asset managers in    
South Africa, managing assets in excess of R110 billion (some US$15 billion).   
Comments                                                                        
Commenting on the commencement of the Block 3 work programme, Robin Vela, SacOil
CEO, said "We are keen to fast track our work on the DRC side of the Albertine  
Graben to catch up with that done by others on the Uganda side of the Albertine 
Graben. Now that we have commenced our work programme, our  next logical        
objective in the area is to achieve a high level of co-operation between the    
various licensed parties in the area and higher levels of co-operation between  
the two governments. We will look to commence work on the same without undue    
delay or deliberation"                                                          
Glen Penfield added, "We have significant confidence in the prospectivity of the
area given the establishment of the existence of a petroleum system in the area.
We believe that the reservoir risks ascribed by the independent economic models 
of contingent resources within Block 3 were too great and that consequently the 
resource base may be significantly greater than previously estimated."          
Midrand                                                                         
30 September 2010                                                               
Sponsor                                                                         
BDO Corporate Finance                                                           
Date: 30/09/2010 12:51:01 Supplied by www.sharenet.co.za                     
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