SCL - SacOil - DRC Presidential Ordinance granted in respect of Total`s 60% Release Date: 17/01/2012 09:00:02 Code(s): SCL
SCL - SacOil - DRC Presidential Ordinance granted in respect of Total`s 60%
interest in SacOil`s Block III
SACOIL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
JSE share code: SCL
AIM share code: SAC
("SacOil" or "the Company")
17 January 2012
DRC Presidential Ordinance granted in respect of Total`s 60% interest in
SacOil`s Block III
SacOil is pleased to announce that the Government of the Democratic Republic of
Congo (`DRC`) has granted a Presidential Ordinance to Total E&P RDC, the
operator of Block III (`the Operator`), for their 60% interest in Block III.
Pursuant to the Presidential Ordinance, the work programme approved by the Block
III Operations Committee (`OpsCom`) for 2012 will now commence in the next few
The initiation of the work programme follows extensive work undertaken by the
Operator over the past six months. An Airborne Gravity and Magnetic Feasibility
study as well as satellite imagery of the topography, physiography and
vegetation of the block was completed in order to provide a geo-referenced
numerical model for future operations in the block.
A budget to the end of 2012 of $30 million has been approved by the OpsCom and
will fund the initial work programme. An Airborne Gravity and Magnetic Survey as
well as the acquisition of a 2D seismic exercise on the northern area of the
Block III located outside the Virunga National Park will be done during 2012.
This seismic survey will estimate the properties of the rock and map the
potential oil and gas prospects. Subject to positively identifying structures
that may contain oil and gas, the Operator intends to drill an exploration well,
which will determine the oil and gas potential and commercial viability of Block
Following the farm-out of Block III to Total in March 2011, SacOil is carried
for the entire work programme and will not be required to contribute any further
capital into this project until final investment decision, which is when a
development plan is put in place.
Robin Vela, CEO of SacOil commented: "The granting of the ordinance is a
significant step for progressing the asset in that the required testing and
evaluation of the oil and gas prospects can begin in earnest. We believe that
there is huge potential in this asset due to the neighbouring oil and gas
discoveries in Uganda which suggest that Block III is in an attractive and
hydrocarbon prospective address. We look forward to positive test results."
SacOil is a South African based JSE and AIM listed Exploration & Production
company focused exclusively on operations in Africa, where it has a competitive
advantage at the point of entry. To date it has operations in the DRC (and
since partnered with Total), Nigeria and South Africa and continues to evaluate
a number of opportunities to secure new value accretive acreage in other
established and prolific African hydrocarbon basins.
About the Block III Operations Committee
The Operations Committee was established in August 2011 and consists of members
from SacOil, Total, DIG Oil Proprietary Limited (`DIG`) and the DRC Government.
The committee is in constant communication but formally meets twice a year.
About Block III
Pursuant to the Block III farm in agreement, SacOil retains an effective 12.5%
interest in Block III, with Total holding 60%, DIG holding 12.5% and the DRC
Government holding the remaining 15%. SacOil and DIG`s interests are held
through a local DRC entity named Semliki Energy SPRL.
Block III is situated in the Albertine Graben, DRC and comprises an area of
3,177 kmSquared, 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 1,5 billion 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.
For further information please contact:
The Standard Bank of South Africa Limited
AIM Nominated Adviser and Joint
Matthew Robinson / Christopher +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 (SA)
Raphala Mogase / Bongiwe Moeli +27 (0) 11 783 7903
Public Relations (United Kingdom)
Pelham Bell Pottinger (UK)
Philip Dennis/ Nick Lambert/Rollo +44 (0)20 7861 3232
Additional information on SacOil can be found at www.sacoilholdings.com.
Date: 17/01/2012 09:00:02 Supplied by www.sharenet.co.za
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