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
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
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.
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
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
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).
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."
30 September 2010
BDO Corporate Finance
Date: 30/09/2010 12:51:01 Supplied by www.sharenet.co.za
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