Go Back Email this Link to a friend

SCL - Sacoil Holdings Limited - Corporate Update

Release Date: 29/03/2012 08:00:01      Code(s): SCL
SCL - Sacoil Holdings Limited - Corporate Update                                
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")                                                     
29 March 2012                                                                   
CORPORATE UPDATE                                                                
-    Block III asset update                                                     
-    Issue of shares for cash to YA Global Masters SPV Ltd                      
-    Appointment of auditors and joint broker                                   
1.   Block III asset update                                                     
On 12 March 2012, Total E&P RDC ("Total") acquired a further 6.66% effective    
interest in Block III from DIG Oil Proprietary Limited ("DIG"), a shareholder   
in Semliki Energy SPRL ("Semliki"). Pursuant to the acquisition, Total`s        
holding in Block III increased to 66.66%, whereas SacOil`s effective interest   
remains unchanged at 12.5%, DIG`s holding reduces to 5.84% and the Democratic   
Republic of Congo ("DRC") Government retains 15.0%. As a result of this         
transaction, Semliki, a company incorporated in the DRC and through which       
SacOil and DIG own their interests in Block III, is now owned 68% by SacOil     
and 32% by DIG.                                                                 
SacOil`s effective interest of 12.5%, its entitlement to contingent cash        
bonuses of USD$54m and a free carry on all exploration expenses up to final     
investment decision (when a development plan is approved) remains unchanged.    
2.   Issue of shares for cash to YA Global Masters SPV Ltd ("YA")               
SacOil shareholders ("Shareholders") are advised that 29 328 257 new SacOil     
ordinary shares ("SEDA Shares") will be issued to YA at a price of R0.43 per    
SEDA Share pursuant to the terms of the Standby Equity Distribution Agreement   
dated 12 October 2011 and approved by Shareholders in a general meeting on 17   
November 2011.                                                                  
Application has been made to the JSE Limited ("JSE") to grant a listing of      
the SEDA Shares and to the London Stock Exchange for the admission of the       
SEDA Shares to trading on the AIM Market ("AIM"). The listing of the SEDA       
Shares on the JSE and the admission of the SEDA Shares to trading on AIM are    
expected to take place on Wednesday, 4 April 2012. The SEDA Shares will rank    
pari passu in all respects with the existing SacOil ordinary shares already     
in issue. The proceeds of the issue of the SEDA Shares will be utilised         
towards funding of corporate costs in relation to potential transactions and    
3.   Appointment of auditors and joint broker                                   
The Company is pleased to announce the following appointments effective 26      
March 2012:                                                                     
-    Ernst & Young Inc. (South Africa) as independent external auditors; and    
-    FirstEnergy Capital as joint broker (United Kingdom).                      
FirstEnergy is a leading international energy-focused bank, providing full-     
service energy investment banking operations.  FirstEnergy`s UK activities      
include corporate broking, equity research, sales and trading, corporate        
mergers and acquisitions and oil and gas property acquisitions and              
divestiture advisory.                                                           
About SacOil                                                                    
SacOil is an African independent upstream oil and gas company, focused on       
African assets with a dual listing on the JSE and AIM. SacOil`s vision is to    
build a balanced hydrocarbon exploration and production portfolio using the     
Company`s African heritage to bring about a competitive advantage at the        
point of entry SacOil`s primary strategic objective is the development,         
exploration and production of discovered assets, with existing or near term     
production, cash and revenue potential.                                         
SacOil is focussed on oil and, where there is a defined access to market, gas   
in proven hydrocarbon bearing basins. The company seeks to build a portfolio    
of assets across the E&P spectrum from potentially "High Impact" exploration    
through to undeveloped discoveries with near term cash flow potential, and      
production with defined upside.                                                 
The Company is willing and able to operate through the exploration phase but    
will continue to focus on the establishment of strategic industry               
partnerships in order to maximise its opportunity set, manage portfolio risk    
and ensure that the optimum technical and operating skills are applied to       
each opportunity.                                                               
Consistent with this strategy, SacOil has built up an E&P portfolio including   
oil discoveries in Nigeria and potentially high impact exploration in the DRC   
detailed as follows:                                                            
    -    in Block III DRC, through its partnership with Total, it is            
         envisaged that the work program committed to will demonstrate          
prospectively and eventually lead to oil production;                   
    -    in relation to OPL 281 Nigeria, SacOil is in the process of            
         evaluating and appraising oil discoveries through the reprocessing     
         of seismic data with a view to drill an appraisal well; remaining      
conditions precedent to the farm in agreement include: perfection      
         of title and all the necessary Nigerian government and Nigerian        
         National Petroleum Company (`NNPC`) consents in relation to the        
         licence;  and                                                          
-    in OPL 233 Nigeria, the Joint Venture Committee consisting of          
         SacOil, NIGDEL and EER  is committed to acquiring 3D OBC seismic       
         data, which should assist in evaluating the size of the existing       
         oil discovery.                                                         
JSE Sponsor                                                                     
Nedbank Capital                                                                 
For Further information please contact:                                         
finnCap Limited (NOMAD and Joint Broker UK)            +44 (0)20 7220 0500      
Matthew Robinson / Christopher Raggett                                          
FirstEnergy Capital (Joint Broker UK)                                           
Majid Shafiq                                          +44 (0) 20 7448 0200      
Travis Inlow                                                                    
The Riverbed Agency (SA)                                                        
Raphala Mogase                                         +27 (0) 11 783 7903      
Pelham Bell Pottinger (UK)                                                      
Philip Dennis                                          +44 (0)20 7861 3919      
Nick Lambert                                           +44 (0)20 7861 3936      
Rollo Critchton-Stuart                                 +44 (0)20 7861 3918      
Date: 29/03/2012 08:00:01 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          

Email this JSE Sens Item to a Friend.

Send e-mail to
© 2018 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.