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
("SacOil" or "the Company" or "the Group")
6 June 2012
SacOil`s Appeal against US$2m Identiguard Claim Upheld
South Africa`s Supreme Court of Appeal dismisses Identiguard`s claim to US$2m
from SacOil`s subsidiary and awards SacOil costs
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.
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;
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.
For further information please
finnCap Limited (Nominated Adviser and +44 (0)20 7220 0500
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
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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