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Scl - Sacoil - Sacoil`s Appeal Against Us$2m Identiguard Claim Upheld Summary

Release Date: 06/06/2012 08:00:04      Code(s): SCL
SCL - SacOil - SacOil`s Appeal against US$2m Identiguard Claim Upheld Summary   
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")                                      
6 June 2012                                                                     
Johannesburg                                                                    
SacOil`s Appeal against US$2m Identiguard Claim Upheld                          
Summary                                                                         
South Africa`s Supreme Court of Appeal dismisses Identiguard`s claim to US$2m   
from SacOil`s subsidiary and awards SacOil costs                                
Background                                                                      
SacOil previously reported on the application instituted by Identiguard         
International (Proprietary) Limited ("Identiguard") against South Africa Congo  
Oil (Pty) Limited ("SacOil Pty"), a subsidiary in which the Company owns 50% of 
the issued share capital. Identiguard obtained a judgment against the DRC       
Government and in partial execution of that judgment, Identiguard sought to     
attach the payment of the supplementary signature bonus (US$2 million) under the
Block III Production Sharing Agreement that was concluded between SacOil Pty and
the DRC Government.                                                             
The South Gauteng High Court delivered judgment in favour of Identiguard during 
May 2011 and authorised the notice of attachment. SacOil Pty applied for leave  
to appeal against the South Gauteng High Court judgment and was granted leave to
appeal to the South African Supreme Court of Appeal ("SCA"). The appeal was     
heard by the SCA on 15 May 2012 and the SCA reserved judgment.                  
SacOil is pleased to inform shareholders that the appeal by its subsidiary,     
SacOil Pty, against the judgment delivered in May 2011 by the South Gauteng High
Court in favour of Identiguard was successful. The appeal was heard by the SCA  
on 15 May 2012 and judgment was delivered on 31 May 2012. The SCA overturned the
High Court order and replaced it with an order dismissing Identiguard`s         
application with costs.                                                         
Identiguard had also prior to the allocation of a date for the hearing of the   
SCA appeal, launched an application in terms of Rule 49(11), requesting the     
South Gauteng High Court not to allow the judgment granted in its favour to     
remain suspended pending the outcome of the appeal, but instead to order SacOil 
Pty to pay the amount of US$2 million into Identiguard attorney`s trust account.
This Rule 49(11) application was heard by the South Gauteng High Court on 20    
March 2012 and judgment was reserved.  Bearing in mind that the SCA appeal has  
since been heard and was successful, Norton Rose Inc., the attorneys acting on  
SacOil Pty`s behalf have sent a copy of the SCA appeal judgment to the South    
Gauteng High Court and have submitted that in the circumstances, the application
in terms of Rule 49(11) should also be dismissed with costs.                    
SacOil`s title to Block III is uncontested and the Company will continue its    
focus on bringing the asset to account with its partners Total and DIG Oil (Pty)
Limited. Block III is a highly attractive exploration concession, adjacent to   
the approximate 1.2 billion contingent resource oil discoveries that were made  
in the Ugandan territory of Lake Albert.                                        
ENDS                                                                            
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 to 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 and DIG Oil, it is         
envisaged that the work program committed to will demonstrate prospectivity     
which could lead to the discovery of hydrocarbons;                              
in to OPL 281 Nigeria, SacOil is in the process of evaluating and appraising    
existing oil discoveries through the reprocessing of seismic data with a view to
drilling 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 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 during 2012, which should     
assist in evaluating and appraising the size of the existing oil discovery, as  
well as delineating additional prospectivity in the concession.                 
JSE Sponsor                                                                     
Nedbank Capital                                                                 
For further information please                                                  
contact:                                                                        
finnCap Limited (Nominated Adviser and   +44 (0)20 7220 0500                    
Broker)                                                                         
Matthew Robinson / Christopher Raggett                                          
                                                                                
FirstEnergy Capital (Joint Broker UK)                                           
Majid Shafiq / Travis Inlow              +44 (0) 20 7448 0200                   
                                                                                
GMP Securities Europe LLP (Joint         +44 (0)20 7647 2800                    
Broker UK)                                                                      
Nick Morgan / Chris Beltgens                                                    
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                    
Date: 06/06/2012 08:00:03 Supplied by www.sharenet.co.za                     
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