SCL - SacOil pursuing secondary listing on the London Alternative Release Date: 12/10/2010 08:00:01 Code(s): SCL
SCL - SacOil pursuing secondary listing on the London Alternative
Investment Market ("AIM")
SacOil Holdings Limited
Incorporated in the Republic of South Africa
Registration number: 1993/000460/06
Share code: SCL
ISIN code: ZAE000127460
SacOil pursuing secondary listing on the London Alternative Investment
- SacOil is pursuing a secondary listing on AIM by the end of Q1
- SacOil progresses on its stated strategic focus of targeting near
term producing and production assets on the African continent.
- SacOil has appointed FINNCAP Limited as its nominated adviser
("NOMAD") & joint broker while Rennaisance Capital Limited will
act as lead broker. Fasken Martineau LLP has been appointed as
the United Kingdom ("UK") legal advisers to SacOil.
- The Secondary listing would provide SacOil with access to
European Capital Markets to support its aggressive acquisition
Johannesburg, South Africa, 11 October 2010 - SacOil, the JSE listed,
independent Pan African upstream oil and gas company, today announces
that it is pursuing a secondary listing on AIM by the end of Q1 2011.
Although SacOil has successfully raised capital by way of issues of
shares for cash, the company`s intention is to attract new
institutional investors to ensure that SacOil is sufficiently
capitalized to further develop current exploration projects and
execute near production and producing asset oil and gas transactions
it has in the pipeline.
The South African based company has progressed on its stated strategic
focus of targeting the acquisition of discovered but undeveloped or
indeed prior producing but now shut in near term producing and
production assets on the African continent. In the important Nigerian
oil and gas market, SacOil has formed a joint venture ("JV") with the
established Nigerian oil and gas company, Energy Equity Resources
("EER"). The JV gives SacOil an opportunity to pursue an initial
transaction in the onshore swamp area of the Niger Delta of discovered
but undeveloped oil assets with a block estimated recoverable
contingent resource of 100 million barrels of oil equivalent (P50 as
reported by TRACS, an oil and gas industry recognized independent
expert) and a peak potential production rate of up to 30 000 barrels
of oil per day. The JV partnership further benefits SacOil in that it
can now acquire oil and gas assets disposed of by International oil
companies as a result of Nigeria`s indigenisation legislation.
In the Democratic Republic of Congo ("DRC"), SacOil has commenced with
the exploration work programme on their `Block 3` of the highly
prospective Albertine Basin, with further equity investment from
Metropolitan Asset Managers Limited ("MetAM") and STANLIB Asset
Management Limited ("STANLIB").
Chief Executive Officer of SacOil, Robin Vela commented, "An
introduction to AIM will provide us with a further platform to raise
our public profile and afford UK investors the opportunity to
participate in the future growth of the business. We understand the
AIM market to have a bigger appetite for upstream oil and gas assets.
We are successfully building SacOil into a Pan African independent
upstream oil and gas company coupled with an ambitious and aggressive
acquisition led growth strategy and we are well positioned to harness
our foot hold into Africa. Our JV with EER is a case in point".
SacOil has appointed FINNCAP Limited as its NOMAD & joint broker while
Renaissance Capital Limited will act as lead broker. Fasken Martineau
LLP has been appointed as UK legal adviser to SacOil.
Further announcements relating to the AIM listing will be made in due
SacOil, previously SA Mineral Resources Corporation Limited, is an
emerging independent Pan African upstream oil and gas company with
access to world class exploration, appraisal and near producing assets
across Africa. SacOil was granted an oil concession in the DRC`s
Albertine Graben area after the President and the Prime Minister of
the DRC signed Presidential Ordinances in respect of Block 3 in June
2010. In May 2010, SacOil entered into a Farmout Agreement to acquire
a 55 per cent participation interest in the exploration permit of the
Chaal gas permit area in Tunisia. The Farmout Agreement is subject to
the Tunisian Government consenting to the Farmout Agreement and to a
one year extension to the exploration permit by 31 January 2011.
SacOil also produces manganese sulphate and oxide for the feed,
fertiliser and chemical industries at its Greenhills plant in
Mpumalanga, South Africa.
SacOil`s current institutional shareholders include STANLIB, MetAM and
Investec Bank Limited ("Investec").
STANLIB was established in 2002 through the merger of the Liberty
Group and the Standard Bank Group`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 black economic
empowerment 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 R330 billion assets under management and
MetAM 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 the
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 R70 billion.
Investec is an international, specialist banking group that provides a
diverse range of financial products and services to a select client
base. Investec is an efficient integrated international business
platform, offering all their core activities in the UK and South
Africa and select activities in Australia. Investec is one of the top
5 leading banks in South Africa, managing assets in excess of R600
12 October 2010
BDO Corporate Finance
Date: 12/10/2010 08:00:00 Supplied by www.sharenet.co.za
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