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Scl - Sacoil Holdings Limited - Half Yearly 2011 Financial Results

Release Date: 14/11/2011 09:00:02      Code(s): SCL
SCL - Sacoil Holdings Limited - Half Yearly 2011 Financial Results              
SACOIL HOLDINGS LIMITED                                                         
(Incorporated in the Republic of South Africa)                                  
(Registration number 1993/000460/06)                                            
JSE share code: SCL                                                             
AIM share code: SAC                                                             
ISIN: ZAE000127460                                                              
("SacOil" or "the Company" or "the Group")                                      
Half Yearly 2011 Financial Results                                              
AIM and JSE listed - SacOil Holdings Limited, the African independent upstream  
oil and gas company, is pleased to announce its half yearly financial results   
for the six months ended 31 August 2011.                                        
HIGHLIGHTS                                                                      
Operational / Management / Corporate                                            
- Successful farmout of a 60% interest in Block III to Total E&P RDC ("Total")  
("Block III Disposal") for:                                                     
* US$7.5m (GBP4.6m) cash payment received net to SacOil                         
* US$54m (GBP33.02m) contingent bonus paymentnet to SacOil                      
* Full carry on exploration costs of at least US$35m (GBP21.4m) to final        
investment decision                                                             
-Strengthened main board, with the appointments of John Bentley and James       
William (Bill) Guest as Independent Non-Executive Directors                     
- Strengthened management team with the appointment of Bradley Cerff as         
Vice-President                                                                  
- Successful admission to AIM                                                   
Financial                                                                       
- US$7.5m (GBP4.6m) cash received and further potential proceeds of US$54m      
(GBP33.02m) in relation to the Block III Disposal (net to SacOil)               
- US$10.6m cash (GBP6.5m) raised through equity                                 
Headline earnings up 657%                                                       
- Tangible Net Asset Value up 379%                                              
- Greenhills plant net profit up 11%                                            
Commenting, Robin Vela, CEO, said:                                              
"The focus over the last six months has been on managing the Company`s exposure 
to the high impact exploration assets in Block III in the highly prospective    
Albertine Basin, whilst retaining significant potential upside for shareholders.
Our attention has also been on procuring funding in order to de-risk and fast   
track the work program obligations of our asset portfolio and progressing       
towards early production and revenues from our oil concession blocks, OPL 233   
and OPL 281, in Nigeria. We successfully did this through the farm-out to Total 
and the recently announced Standby Equity Distribution Agreement. Combined, this
puts us in a good position to fast track and develop our asset position and     
opportunities and we look forward to the next six months of the financial year  
with added confidence."                                                         
Interim Statement                                                               
Operations                                                                      
During the period, SacOil, through Semliki Energy SPRL ("Semliki"), a company   
incorporated in the DRC and in which it holds a 50% interest, successfully      
concluded the farm-out and transfer of a 60% legal and beneficial participating 
interest and operatorship of Block III to Total. DIG Oil Proprietary Limited    
("DIG") holds the other 50% in Semliki. In return, SacOil gained:               
- An immediate gross cash realisation of US$7.5m (GBP4.6m);                     
- Future contingent cash bonuses of, in aggregate, US$54.0m (GBP33.2m) and      
payable in two tranches;                                                        
- Full carry on exploration expenditure costs of at least US$35m (GBP21.4m)     
until final investment decision;                                                
- Settlement of a US$1.4m (GBP0.9m) loan provided to DIG;and                    
- Knowledge and technical skills transfer via SacOil`s representation on the    
management committee of Block III.                                              
Under the terms of the farm-out, Total has committed to use all reasonable      
endeavors to meet the Block III Work Programme obligations and to reach final   
investment decision within three years from 31 March 2011, the date on which the
Block III Disposal was completed.                                               
In line with the Company`s strategy of managing high impact exploration risk but
retaining meaningful upside, the farm-out to Total greatly de-risks the         
Company`s remaining 12.5% effective interest in the Block, both financially     
through the carry on costs and operationally through the additional             
understanding and knowledge that Total brings as operator and a partner.        
On 31 March 2011, SacOil received 50% of the initial consideration amounting to 
US$7.5m (GBP4.6m) as a distribution from Semliki. Semliki also                  
recognisedincomeof R238.1m (GBP20.6m) in relation to the Block III Disposal.    
On 31 March 2011, DIG settled a loan from SacOil amounting to US$1.4m (GBP0.9m) 
out of its 50% share of the initial consideration. The loan advanced to DIG by  
SacOil was in terms of a loan agreement and related to signature bonuses paid by
SacOil, on behalf of DIG, directly to the DRC Government on Block III.          
Corporate                                                                       
On 8 April 2011 SacOil was successfully admitted to the AIM market of the London
Stock Exchange ("LSE"). Although the Company`s primary listing remains on the   
Johannesburg Securities Exchange ("JSE"), its admission to AIM enables it to    
gain exposure to the European markets which have a well-developed understanding 
of the exploration and production industry.                                     
SacOil believes that it has a compelling proposition to aggressively acquire new
acreage on the African continent. Being a purely African based company and with 
extensive experience in the region, it is ideally positioned to take advantage  
of the opportunities that arise, as well as to fast track, develop and de-risk  
these assets through to early production, thereby establishing the Company as a 
balanced portfolio independent African upstream company.                        
Board and Management                                                            
In line with the Company`s aim to strengthen its board and management team and  
to build on its current senior oil and gas experience, during the period John   
Bentley and James William (Bill) Guest were appointed as independent non-       
executive directors.                                                            
John has over 40 years` experience in the natural resources sector. He has held 
senior positions in manylisted and private oil & gas and mining companies as    
well as being instrumental in the listing of companies                          
in both Johannesburg and London. He is currently Chairman of Faroe Petroleum    
plc, Chairman ofScotgold Resources Ltd, Deputy Chairman of Wentworth Resources  
Ltd and a Non-Executive Director ofResaca Exploitation Inc and Kea Petroleum    
plc.                                                                            
With over 35 years` of international exploration and production experience      
within the oil industry, Bill brings invaluable technical, business development 
and senior management experience to the Company. Having spent over 14 years on  
the main boards of London listed Oil and Gas Exploration and Production         
companies, he also brings a significant amount of senior public company         
experience to SacOil.                                                           
In May 2011, the Company also appointed Bradley Cerff as its Vice President.    
Bradley joins from PetroSA where he held the position of Regional Manager for   
East and West Africa. Bradley has over 15 years` experience in the oil and gas  
Industry with Masters Degree in Science and Business Administration focused on  
foreign direct investment in the African oil and gas industries. He is also a   
member of the Society of Petroleum Engineers.                                   
As from 14 November 2011, Colin Bird will return to being a Non-Executive       
Director of the Company. Colin was appointed as Executive Director of SacOil in 
October 2010 mainly to assist the Company in its application for an admission to
AIM.                                                                            
Financial                                                                       
In order to ensure that the Group is sufficiently funded to fast track its      
current projects and be able to pursue new opportunities, the Company has       
secured the following:                                                          
- a Standby Equity Distribution Agreement ("SEDA") of US$25m (GBP16m)           
("Commitment Amount") with Yorkville Advisers UK LLP ("YA"). This facility is   
available to the Company for a period of three years. Under the SEDA, any issue 
of shares in the capital of the Company to YA constitutes a specific issue of   
shares for cash in terms of JSE Listings Requirements, and accordingly requires 
approval by Shareholders; and                                                   
- an irrevocable undertaking to subscribe for 111940 298 new SacOil shares at an
issue price of 67 cents per share from Timtex Investments Proprietary Limited   
("Timtex"). The proceeds of R75 million (GBP6.5m) have been received by SacOil  
and are being utilised to further advance the Group`s various oil and gas       
projects and also pursue new opportunities that might arise.                    
Both the SEDA and the issue to Timtex are subject to shareholder approval at a  
general meeting of Shareholders to be held on Thursday, 17 November 2011.       
Outlook                                                                         
SacOil has made solid progress on a number of fronts over the last six months.  
With the farm-out to Total in place and the funds gained though the placing and 
the SEDA, the Company is well positioned to be able to progress its plans in    
Nigeria as well as look at additional options to grow its asset portfolio.      
The focus of most oil & gas companies in Africa is on high impact but sizable   
exploration assets. That leaves numerous already discovered and as such         
relatively de-risked smaller plays for SacOil to take advantage of. For a       
company of SacOil`s size, these opportunities are not only highly commercial but
also provide the potential for fast track production and revenue, which in turn 
creates the foundation for future step growth.                                  
For further information please contact:                                         
AIM Nominated Adviser and Joint Broker                                          
finnCap Ltd                                                                     
Matthew Robinson / Christopher Raggett                     +44 (0)20 7220 0500  
Joint Broker (United Kingdom)                                                   
Shore Capital Stockbrokers Ltd                                                  
Jerry Keen / Bidhi Bhoma                                   +44 (0)20 7408 4090  
Public Relations (South Africa)                                                 
The Riverbed Agency (South Africa)                                              
Raphala Mogase / Bongiwe Moeli                             +27 (0) 11 783 7903  
Public Relations (United Kingdom)                                               
Pelham Bell Pottinger (United Kingdom)                                          
Philip Dennis/Nick Lambert/Rollo Critchton-Stuart          +44 (0)20 7861 3232  
Notes                                                                           
Further details on the above are provided in the Interim Consolidated Financial 
Statements for the six months ended 31 August 2011 which are shown below and are
also available on the Company`s website:                                        
www.sacoilholdings.com                                                          
SACOIL HOLDINGS LIMITED                                                         
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST2011                
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                                  
                        Notes      Unaudited      Unaudited           Audited   
                                  Six months     Six months     Twelve months   
                                      Aug-11         Aug-10            Feb-11   
R`000          R`000             R`000   
Revenue                                19 274         16 474            35 143  
Cost of sales                        (13 572)       (11 456)          (23 615)  
Gross profit                            5 702          5 017            11 528  
Operating costs                       (4 254)        (3 714)           (7 327)  
Results from operating                                                          
activities                   2          1 448          1 303             4 201  
Corporate costs              3       (30 192)              -          (24 680)  
General and                                                                     
Administration costs                  (6 926)        (4 244)           (4 021)  
                                    (37 117)        (4 244)          (28 702)   
Finance income                          6123            179             1 271   
Finance costs                         (2 032)           (10)              (17)  
Net finance (cost)/income               4 091            169             1 254  
Equity settled expenses      4       (50 885)        (4 179)           (4 179)  
Fair value adjustments                  3 097              -           (2 229)  
Net surplus on disposal                                                         
of intangible assets         5         98 516              -                 -  
Loss from operations                   50 728        (4 179)           (6 408)  
Loss for the period                                                             
before tax                             19 149        (6 951)          (29 655)  
Income tax                                  -              -              (95)  
Profit/(Loss) for the                                                           
period                                 19 149        (6 951)          (29 750)  
Other comprehensive income                                                      
Gains and losses on                                                             
property revaluation                        -              -             (340)  
Income tax on other                                                             
comprehensive income                        -              -                95  
Other comprehensive                                                             
income for the period                                                           
net of income tax                           -              -             (245)  
Total comprehensive                                                             
income/(loss) for the period           19 149        (6 951)          (29 995)  
Total comprehensive                                                             
income/(loss)                                                                   
attributable to:                                                                
Owners of the parent                 (31 097)        (6 951)          (29 995)  
Non-controlling interest               50 246              -                 -  
                                      19 149        (6 951)          (29 995)   
Reconciliation of                                                               
headline earnings                                                               
Loss for the period                  (31 097)        (6 951)          (29 750)  
Loss on sale of                                                                 
intangible asset                                                                
attributable to owners                                                          
of the parent                5         69 810              -                 -  
Headline earnings/(loss)               38 713        (6 951)          (29 750)  
Weighted average number                                                         
of shares                             680 555        314 800           449 629  
Loss per share (cents)       1         (4.57)         (2.21)            (6.67)  
Diluted loss per share (cents)         (4.49)         (2.20)            (6.16)  
Headline earnings/(loss)                                                        
per share (cents)            1           5.69         (2.21)            (6.62)  
Diluted headline                                                                
earnings/(loss) per                                                             
share (cents)                            5.59         (2.20)            (6.16)  
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION                                   
                                   Unaudited      Unaudited           Audited   
                                  Six months     Six months     Twelve months   
Aug-11         Aug-10            Feb-11   
                                       R`000          R`000             R`000   
ASSETS                                                                          
Property, plant and equipment           6 282          7 135             6 644  
Intangible assets            6        153 056              -           394 642  
Deferred tax asset                        799            895               799  
Other financial assets       7        362 103              -            45 087  
Non-current assets                    522 240          8 030           447 172  
Loans receivable                       52 927         27 867            11 413  
Inventories                             2 401          2 578             2 408  
Trade and sundry accounts                                                       
receivable                              8 829          5 576             6 317  
Cash and cash equivalents              11 786          4 616            17 900  
Current assets                         75 943         40 636            38 038  
Total assets                          598 183         48 667           485 210  
EQUITY AND LIABILITIES                                                          
Equity attributable to                                                          
equity holders                                                                  
Stated capital               8        468 380          86229           374 029  
Reserves                               38 880          30234            29 989  
Accumulated loss                    (127 296)        (73399)          (96 200)  
                                     379 963          43065           307 818   
Non-controlling interest              212 006              -           161 179  
Total equity                          591 969         43 065           468 997  
Provision for environmental                                                     
rehabilitation                          1 006            886               946  
Non-current liabilities                 1 006            886               946  
Trade and other payables                4 409          3 822             6 209  
Deferred tax liability                    799            895               799  
Loans payable                               -              -             8 259  
Current liabilities                     5 208          4 717            15 267  
Total equity and liabilities          598 183         48 667           485 210  
Number of shares in issue (`000)      683 929        321 635           674 090  
Net asset value per share (cents)       86.55          13.39             69.57  
Net tangible asset value per                                                    
share (cents)                           64.18          13.39             11.03  
STATEMENTS OF CHANGES IN EQUITY                                                 
                Stated capital   Revaluation     Accumulated     Total equity   
R`000                                 reserve            loss                   
Balance at 28                                                                   
February 2011           374 029        29 989        (96 200)          307 818  
Ordinary shares issued   94 351             -               -           94 351  
Loss for the period                         -        (31 097)         (31 097)  
Share based payment                                                             
expense                       -         8 890               -            8 890  
Balance at 31                                                                   
August 2010             468 380        38 879       (127 297)          379 962  
CASH FLOW STATEMENTS                Unaudited      Unaudited           Audited  
Six months     Six months     Twelve months   
                                      Aug-11         Aug-10            Feb-11   
                                       R`000          R`000             R`000   
Cash utilised in                                                                
operating activities                 (25 724)        (2 472)          (23 049)  
Net investment (cost)/income            4 088            169             1 254  
Net cash flows from                                                             
operating activities                 (21 636)        (2 303)          (21 796)  
Cash flows from investing                                                       
activities                                                                      
Purchase of property, plant                                                     
and equipment                           (136)              -                 -  
Sale/(acquisition) of                                                           
intangible assets                     101 967              -          (54 475)  
Net cash flows from investing                                                   
activities                            101 831              -          (54 475)  
(Decrease) in loans receivable      (119 223)              -          (45 477)  
Equity settled expenses              (41 994)              -                 -  
Finance lease payments                   (91)           (79)             (154)  
Proceeds on share issues               75 000              -           132 804  
Cash flows from financing                                                       
activities                           (86 307)           (79)            87 172  
Net movement in cash and cash                                                   
equivalents                           (6 113)        (2 382)            10 902  
Cash and cash equivalents at the                                                
beginning of the year                  17 900          6 998             6 998  
Cash and cash equivalents at the                                                
end of the year                        11 786          4 616            17 900  
Notes to the Interim Financial Statements for the six months ended 31 August    
2011                                                                            
Basis of preparation                                                            
The interim financial statements of the Group for the six months ended 31 August
2011 have been prepared in accordance with the Group`s accounting policies,     
which comply with International Financial Reporting Standards as well as the AC 
500 standards as issued by the Accounting Practices Board or its successor and  
are consistent with those of the previous year. This interim report has been    
prepared in accordance with and containing the information required by          
International Accounting Standard 34 - Interim Financial Reporting. The interim 
report has been prepared on a going concern basis.                              
The interim financial statements have not been audited or reviewed by the       
Group`s auditors and is the responsibility of the directors of the Company.     
These interim financial statements have been prepared under the supervision of  
the Company`s Finance Director, Carina de Beer.                                 
All monetary information and figures presented in these interim financial       
statements are stated in thousands of Rand (R`000), unless otherwise indicated  
and are presented in the functional currency of the Company being South African 
Rand.                                                                           
Notes                                                                           
1. The Group reported a net asset value of 86.55 (2010: 13.39) cents per        
ordinary share ("share"), a net tangible asset value of 64.18 (2010:13.39) cents
per share, a loss of 4.57 (2010: 2.21) cents per share and headline earnings of 
5.69 (2010: 2.21) cents per share.                                              
2. The Company`s chemical processing plant in Mpumalanga, better known as       
Greenhills, increased sales by 17% and gross profits by 11%. Sales and          
production levels were maintained although increased maintenance costs have     
negatively impacted on profits.                                                 
3. Corporate costs mainly include costs paid ("AIM Costs") in relation to the   
Company`s successful admission to the Alternative Investment Market ("AIM") of  
the London Stock Exchange ("LSE") on 8 April 2011.                              
4. Included in equity settled expenses are 12 021 122 call options ("Call       
Options") issued to Renaissance BJM Securities Proprietary Limited (South       
Africa) ("Rencap") in relation to funding provided to enable SacOil to fulfil   
its obligations in relation to, inter alia, signature bonuses and farm in fees  
payable to the Nigerian Government on oil concessions OPL 281 and OPL 233. The  
average strike price of these call options is R1.46 and the call options expires
at 28 February 2012.                                                            
Also included in equity settled expenses is a cash settlement of an equity      
conversion in relation to a facility of US$30.9 million ("Facility") provided to
SacOil by Rencap ("Equity Conversion").                                         
The management of SacOil elected a cash settlement of the equity conversion to  
avoid dilution of existing shareholders` interests in SacOil.                   
The AIM Costs, the Call Options and the Equity Conversion of the Facility were  
approved by SacOil shareholders ("Shareholders") at a general meeting of        
Shareholders held on 31 March 2011.                                             
5. The net surplus on disposal of intangible assets consists of two components. 
Firstly, a loss on disposal of intangible assets in an amount of R139.6m        
(US$20.4m), which represents the disposal by Semliki SPRL ("Semliki"); a 50%    
owned subsidiary of SacOil incorporated in the Democratic Republic of the Congo,
of a 60% interest in the Block III oil concession rights ("Block III Disposal") 
to Total E&P RDC ("Total") calculated taking into account an initial            
consideration received in an amount of R102m (US$7.5m). The Block III Disposal  
was completed on 31 March 2011 ("Completion Date") and the initial consideration
was duly received by Semliki.                                                   
Secondly, included the net surplus on disposal of intangible assets, is an      
adjustment of R238.1m (US$33.7m) in relation to the Block III Disposal. In      
recognising the income, the management of SacOil considered new and updated     
information on Block III which justified an adjustment of the value of the first
contingent bonuspayable by Total to Semliki in terms of the Block III Disposal. 
The amount of R238.1m (US$33.7m) was recognised in other financial assets on the
statement of financial position as at 31 August 2011.                           
6. Business Combinations                                                        
6.1 Fair value of assets acquired and liabilities assumed in a business         
combination on 20 September 2011                                                
Intangible assets                                                  340 167 267  
Other financial liabilities                                       (16 740 875)  
Trade and other payables                                           (1 067 963)  
Total identifiable net assets                                      322 358 429  
Non-controlling interest                                         (161 760 089)  
                                                                  160 598 340   
6.2 Non-controlling interest                                                    
Non-controlling interest is measured at the non-controlling interest`s          
proportionate share of the acquiree`s identifiable net assets.                  
6.3 Equity issued as part of consideration paid                                 
On 22 July 2010 SacOil entered into a sale of shares agreement in terms of which
SacOil acquired from the SacOil Proprietary Limited ("SPL") Vendors 50% of the  
entire issued share capital of, and all claims of the SPL Vendors against, SPL  
on the date that all the conditions precedent have been met, for a consideration
of R439.9m (US$57,7m), to be settled through the issue of 209 456 000 new SacOil
shares at an issue price of 210 cents per ordinary share. The fair value of the 
shares issued to the vendors is 74 cents per ordinary share being the market    
price of SacOil ordinary shares the day before the announcement of the          
transaction, being 23 July 2010.                                                
Under DRC law hydrocarbon rights must be held by an entity incorporated in the  
DRC. The Block III Production Sharing Agreement required the Block III          
Contractant to constitute a DRC public limited liability company within six     
months of the date of the Block III Production Sharing Agreement ("PSA") coming 
into force and effect. On 19 November 2010 the Company and DIG incorporated     
Semliki, a private company incorporated in the DRC. The Company and DIG each    
hold 50 per cent of the issued share capital of Semliki. The statutes of Semliki
provide that the Company and DIG shall transfer to the DRC or a public entity   
nominated by the DRC 15 per cent of the issued share capital of Semliki. Semliki
will launch an application to be converted into a public limited liability      
company in due course.                                                          
The DRC Government has furnished its consent for the initial incorporation of   
Semliki as a private limited liability company (as distinct from a public       
limited liability company) and for the current shareholding arrangement. To date
the DRC Government has not made an election as to whether it intends to hold its
interest in Semliki directly or through Cohydro or an alternative public entity.
If the DRC Government elects not to hold its participating interest through     
Cohydro then it may be necessary to amend the provisions of the Block III       
Production Sharing Agreement.                                                   
The rights and obligations of the Block III Contractant under the Block III PSA 
were transferred to Semliki by operation of DRC law with effect from 19 November
2010.                                                                           
6.4 Revenue and results of Semliki                                              
Included in the Group`s results is a profit reported by Semliki in an amount of 
R100, 5m of which 50% is attributable to non-controlling shareholders. Neither  
SPL nor Semliki reported any profits or losses since the acquisition date to 28 
February 2011.                                                                  
6.5 Acquisition related costs                                                   
These costs have been expensed in the year of acquisition and are included in   
comprehensive income.                                                           
For full details on the Company`s investment in Block III please refer to:      
http://www.sacoilholding.com/im/fi les/listing/                                 
7. Included in other financial assets is an amount of R52.9 million owed to     
SacOil by Energy Equity Resources Limited ("EER") in relation to capital costs  
paid by SacOil on behalf of EER with respect to oil concession blocks OPL 281   
and OPL 233 in Nigeria. In terms of an agreement entered into between EER and   
SacOil ("Loan Agreement"), all acquisition costs paid by SacOil on behalf of EER
bears interest at 25% calculated from the date of incurring such costs to the   
date of recovery. The loan is repayable in three equal annual instalments, the  
first such instalment becoming due 60 business days after first oil production  
by taking that proportion of EER`s entitlement to petroleum that equals one     
third of the outstanding capital plus interest accrued. The second and third    
instalments will become payable on the same principle from EER`s subsequent     
entitlement to petroleum. The loan is secured by a cession and pledge over EER`s
equity interests in both OPL 281 and OPL 233 in favour of SacOil.               
8. Shareholders are referred to the announcement released on the Securities     
Exchange News Service ("SENS") of the JSE Limited ("JSE") and on the Regulatory 
News Service ("RNS") of the LSE on Friday, 2 September 2011, regarding the      
specific issue of ordinary shares to Timtex Investments (Proprietary) Limited   
("Timtex"), an associate of Encha Group Limited ("Encha") ("the Specific        
Issue").                                                                        
On Tuesday, 30 August 2011,Timtex signed an irrevocable undertaking to subscribe
for 111 940 298 new SacOil shares at an issue price of 67 cents per share, being
the closing price of SacOil ordinary shares on 29 August 2011, the day before   
Timtex signed the irrevocable undertaking. The issue price is at a premium of   
8.06% to the 30-day volume weighted average price of SacOil on 29 August 2011.  
Timtex currently holds 4.96% in the issued capital of SacOil and is an associate
company of Encha holding 35.88% in the issued capital of SacOil.                
The proceeds of R75m from the Specific Issue have been received by SacOil and is
utilised to fast-track the Group`s various oil and gas projects and also pursue 
new opportunities that might arise.                                             
9. Dividends                                                                    
The Board has resolved not to declare any dividends to Shareholders for the     
period under review.                                                            
10. Segmental information                                                       
The Group`s business model has not advanced to a stage where accurate and       
meaningful segmental information can be presented. Currently, the only operation
generating revenue is the Greenhills plant, which is a non-core asset. Sales    
volumes for the six months to August 2011 are as follows:                       
                     Group and Company        %     Group and Company    %      
                      Six months ended            Six months ended 31           
                        31 August 2011                    August 2010           
Export sales                      1 240       48                   960   40     
Local sales                       1 337       52                 1 463   60     
Total                             2 577      100                 2 423  100     
By order of the board                                                           
Melinda Gous                                                                    
Fusion Corporate Secretarial Services Proprietary Limited                       
Company secretary                                                               
Johannesburg                                                                    
14 November  2011                                                               
JSE Sponsor                                                                     
The Standard Bank of South Africa Limited                                       
AIM Nominated Adviser and Joint Broker                                          
finnCap Ltd                                                                     
CORPORATE INFORMATION                                                           
Registered office and physical address:                                         
2nd Floor, The Gabba                                                            
Dimension Data Campus                                                           
57 Sloane Street                                                                
Bryanston                                                                       
2021                                                                            
Postal address:                                                                 
PostNet Suite 211                                                               
Private Bag X75                                                                 
Bryanston                                                                       
2021                                                                            
Contact details:                                                                
Tel: +27 (0) 11 575 7232                                                        
Fax: +27 (0) 11 576 2258                                                        
Email: info@sacoilholdings.com                                                  
Website: www.sacoilholdings.com                                                 
Advisers                                                                        
Company Secretary                                                               
Fusion Corporate Secretarial Services Proprietary Limited                       
Transfer Secretaries South Africa                                               
Link Market Services South Africa Proprietary Limited                           
Transfer secretaries United Kingdom                                             
Computershare Investor Services (Jersey) Limited                                
Corporate legal advisers                                                        
Bowman Gilfillan                                                                
Auditors                                                                        
BDO South Africa Inc.                                                           
Notes to oil and gas disclosure                                                 
In accordance with AIM Guidelines, Bradley Cerff, is the qualified person that  
has reviewed the technical information contained in this news release. Bradley  
has over 15 years` experience in the oil and gas Industry with Masters Degrees  
in Science and Business Administration focused on Foreign Direct Investment in  
the African oil and gas industries. He is also a member of the Society of       
Petroleum Engineers.                                                            
About SacOil                                                                    
SacOil is a South African based JSE and AIM listed African independent upstream 
oil and gas company focused exclusively on operations in Africa, where it has a 
competitive advantage at the point of entry. In the assets that SacOil owns, it 
is committed to developing the assets to a level that adds value to the         
shareholders.To date it has operations in the DRC (and since partnered with     
Total), Nigeria and South Africa and the directors continue to evaluate a number
of opportunities to secure new value accretive acreage in other established and 
prolific African hydrocarbon basins.                                            
Democratic Republic of Congo Assets                                             
The Democratic Republic of Congo has vast tracts of untapped raw mineral ores   
and some of the richest mineral deposits in the world.                          
- Block III, DRC                                                                
In Block III through the joint Venture with Total, it is envisaged that the work
program committed to will demonstrate prospectively and eventually lead to oil  
production.                                                                     
Block III is situated in the Albertine Graben, DRC and comprises an area of     
3,177 km2, which is mostly lowland (Semliki river plain) and is flanked by rift 
margins. Block III is on trend with Lake Albert discoveries in Uganda. The      
largest discovery in the Escarpment/Near-shore Play is Kingfisher (200MMbbl) and
the largest discovery in the Victoria Nile Delta Play is Giraffe-Buffalo        
(300MMbbl). Over 800 million barrels of recoverable oil have been discovered in 
the Albertine Graben, and the total resource base is estimated at two billion   
barrels. To date, the majority of the exploration has been within the borders of
Uganda, but the DRC concessions are considered to be highly prospective, with   
Block III being close to recent significant discoveries.                        
Nigerian Assets                                                                 
Nigeria has become Africa`s biggest producer of crude oil and it is believed    
that the Niger Delta holds some of the world`s richest oil deposits.            
- OPL 233, Nigeria                                                              
OPL 233 is a 126 km2 shallow water block with a water depth of less than 30 ft  
and is located immediately off the coast of the central delta region of Nigeria,
some 120 km due south-southeast from the Forcados terminal. The block is        
adjacent to giant Apoi field (>600MMbo) and is flanked by a number of oil and   
gas fields and discoveries. The AGR-TRACS (an oil and gas industry recognised   
independent expert) petrophysical interpretation of the Olobia-I well-logs      
indicates 103 ft of net oil and 54 ft of gas and condensate across five         
reservoir pay zones. The block is sparsely covered by 2D seismic data with      
upside in Block 233 potentially significant.                                    
On OPL 233, SacOil with its partners are committed to acquiring 3D seismic data 
which appraise the existing discovery and is envisaged to give a better         
understanding of the prospectivity of the remaining block. The data will also be
used to update the existing CPR.                                                
- OPL 281 Nigeria                                                               
OPL 281 is an onshore block covering some 138 kmSquared, and is located in the  
western delta region of Nigeria approximately 25 km due east from the Forcados  
terminal. Two discovery wells have been drilled to date on the block, namely    
Obote-I in 1970 which encountered hydrocarbons at four levels between 8,720 ft  
and 12,350 ft, while Ekoro-I drilled in 1967 discovered eight hydrocarbon sands 
between 8,260 ft and 10,761 ft. The block has discovered but undeveloped        
hydrocarbon resources with a contingent resource for the block estimated at 100 
mmboe (P50 as reported by TRACS, an oil and gas industry recognised independent 
expert.                                                                         
In relation to OPL 281, SacOil with its Joint Venture partners are in the       
process of evaluating and appraising the oil discoveries on block through the   
reprocessing of seismic data and the drilling of an appraisal well.             
Date: 14/11/2011 09:00:01 Supplied by www.sharenet.co.za                     
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