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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                                                             
ISIN: ZAE000127460                                                              
("SacOil" or "the Company")                                                     
17 January 2012                                                                 
Johannesburg                                                                    
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  
weeks.                                                                          
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
III.                                                                            
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."     
ENDS                                                                            
About SacOil                                                                    
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:                                         
JSE Sponsor                                                                     
The Standard Bank of South Africa Limited                                       
AIM Nominated Adviser and Joint                                                 
Broker                                                                          
finnCap Ltd                                                                     
Matthew Robinson / Christopher                  +44 (0)20 7220 0500             
Raggett                                                                         
                                                                                
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             
Crichton-Stuart                                                                 
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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