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Sacoil Holdings Limited - Sacoil Operations Update

Release Date: 10/04/2013 08:00:00      Code(s): SCL     
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?)


                                SacOil Operations Update

SacOil, the independent African oil and gas company, is pleased to provide the market with the
following update on the Company?s on-going operational activities.

Highlights:

    Malawi, Block 1: Planning of environmental and social impact assessment

    Democratic Republic of the Congo (?DRC?), Block III: 2D seismic data planning and acquisition

    Nigeria, OPL 233: Approval of 2013 Work Program and Budget; re-interpretation of seismic
    and well data

    Nigeria, OPL 281: Expected release of PSC and re-interpretation of seismic and well data


Malawi, Block 1: Planning of environmental and social impact assessment

Following the award of Block 1, in December 2012, first operations have commenced, with the initial
planning associated with the environmental and social impact assessment underway. In consultation
with Malawian government, SacOil is currently targeting to have this work programme complete by
Q2 2014. As previously outlined, the term of the exploration license is an initial four year period,
followed by two subsequent three year renewal periods.

SacOil was awarded a 100% interest and operator status in Block 1, an onshore petroleum
prospecting license in Malawi. At 12,265 square kilometres, Block 1 is the second largest petroleum
exploration license demarcated in Malawi.

Block 1 is located in the North Western part of Malawi bordering Tanzania to the north and Zambia
to the west. The licence is located on trend with the East African rift system which is a proven
exploration province with prolific oil discoveries in Sudan, Chad, Kenya and Uganda. Through initial
work completed, the SacOil technical team anticipates that the same Tertiary rift system will be
present in Malawi.

DRC, Block III: 2D seismic data planning and acquisition

As previously announced, Total E&P RDC (?Total?) successfully acquired an airborne gravity and
magnetic survey over the northern part of Block III outside the Virunga National Park.

Processing and interpretation of the data has now been completed and confirms the expected
geological trend observed in the area. SacOil?s interpretation and geological model suggests the
existence of a north-west to south-east trending basin, whilst the horst and graben structure as well
as quality and thickness of the sedimentary infill will need to be confirmed with seismic data. The
orientation of this modeled basin is believed to be on trend with the basin orientation where the
large discoveries have been made in the Albertine Graben by other operators.

With this positive geological information, planning for the acquisition of a 2D seismic survey to map
potential oil and gas prospects has begun. The current design envisages that at a minimum of 400
km of 2D seismic data will be acquired during the next dry season, which starts December 2013.

The operator is currently active in Block III, with environmental and societal personnel on the ground
to finalise the data acquisition and to complete the environmental and social impact report for
submission to the DRC authorities. Total?s technical team is currently working with three bidders to
optimise the 2D seismic acquisition design according to the local topography. There has been a delay
of approximately six months to the planned work program, as a result of civil unrest in the area.
Taking into account these delays, the JV requested an extension from the DRC government to the
license, and in December 2012 the Block III license was extended by one year with the license
expiring in the January 2016. With the situation on the ground now stabilised, it is anticipated that
the seismic acquisition will take place within the next dry season, December 2013.

Nigeria, OPL 233: Approval of 2013 Work Program and Budget, Re-interpretation of seismic and
well data

In February 2013 the Nigerian National Petroleum Corporation (?NNPC?) approved the OPL 233 work
program and budget for 2013. The approved work program includes the acquisition and processing
of a 100 square kilometers of 3D Ocean Bottom Cable (OBC) seismic survey to be acquired over the
block and the drilling of an exploration well.

A site survey has been successfully completed by a seismic contractor and the final report is being
compiled. Following the receipt of the site survey report, the seismic acquisition design parameters
will be finalised and the OBC seismic survey is expected to be acquired during the next dry season in
Q3 2013. The survey will enable the optimum placement of a well to appraise the Olobia-1 oil
discovery on the Block and for SacOil to develop an understanding of the blocks prospectivity.

In addition, SacOil is in the process of reviewing the existing seismic data in more detail and on
completion will update its internal evaluation of the OPL 233 resources. It has also, sourced
additional 2D data on the south-western portion of the concession, which will assist in the
identification of a number of additional leads and prospects for subsequent further evaluation of the
block.

Nigeria, OPL 281: Expected release of PSC and re-interpretation of seismic and well data

SacOil is awaiting the outcome of final discussions between the NNPC and Transcorp relating to the
OPL 281 PSC. Once this is done, a PSC execution date will be agreed and communicated to SacOil. In
addition, SacOil has completed the seismic and well re-interpretation of the existing 3D seismic data,
and is currently in the process of engaging with a Competent Person to certify the OPL 281
contingent resources. SacOil has identified substantial prospective resources in OPL 281, which will
be subjected to the Competent Person for certification.

The 2013 program remains subject to final NNPC approvals, but is expected to be focused on
reprocessing of existing and raw 3D seismic data over the block and the drilling of one well.
Qualified Person Review

This release has been reviewed by Bradley Cerff, Vice President Operations, who is a member of the
Society of Petroleum Engineers with 16 years? experience in petroleum exploration and
management. Bradley Cerff has consented to the inclusion of the technical information in this
release in the form and context in which it appears.

10 April 2013
Johannesburg


ENDS

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Vanessa Ingram                                                    +27 (0) 11 447 2993
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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 Crichton-Stuart                                             +44 (0) 20 7861 3918

Date: 10/04/2013 08:00:00 Supplied by www.sharenet.co.za                     
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