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Sacoil Holdings Limited - Sacoil Quarterly Operations Update

Release Date: 08/11/2013 11:45:00      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 Quarterly Operations Update

SacOil, the South African based, independent African oil and gas company listed on the JSE and AIM
(JSE: SCL / AIM: SAC) is pleased to provide the following update on the Company?s on-going
operational activities in the Democratic Republic of Congo (?DRC?), Nigeria, Malawi, and Botswana.

SacOil, under the guidance of its new board of directors, remains focussed on delivering its vision to
build a balanced portfolio of assets from exploration to established production and cash flow in
Africa.

The Company is pleased with the progress of its existing portfolio of exploration and appraisal assets,
and continues to evaluate a number of opportunities to secure new value accretive acreage in other
established and prolific African hydrocarbon basins.

Highlights:

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

-   Nigeria, OPL 233: Execution of 2013 work program and 3D Seismic data acquisition

-   Nigeria, OPL 281: Re-interpretation of seismic and well data

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

-   Botswana, granting of Licenses 123, 124 and 125


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.

The interpretation of the processed gravity and magnetic survey confirms the geological trend
observed in the adjacent concessions in Uganda. Features similar to those found to be oil-bearing in
Uganda in the Albertine Graben have been observed and identified with the new data. With this
positive and exciting geological information, planning for the acquisition of a 2D seismic survey has
begun. The current design envisages the acquisition of a minimum of 400 km of 2D seismic data.

There has been a delay of approximately six months to the planned work program, as a result of civil
unrest to the south of our area of activity. With the situation on the ground now stabilised, it is
anticipated that the seismic acquisition will take place within the next dry season in Q1 2014.

Nigeria, OPL 233: Execution of 2013 work program and 3D Seismic data acquisition

As previously reported the Work Program and the Work Program Budget for 2013 were approved by
National Petroleum Investment Management Services (NAPIMS) during March 2013. Following the
approval, the OPL 233 JV Partners (the ?JV Partners?) have reworked the existing seismic data on OPL
233, and incorporated further data on the South-Western portion of the concession, providing an
integrated geological understanding of the acreage and the region.

Whilst inherent uncertainties remain in the current data due to the dated vintage, poor quality and
uncertain navigation parameters, the JV Partners remain optimistic on the contingent resources and
potential upside. In addition, the JV Partners have identified a number of additional prospective
leads for subsequent investigation and possible drilling.

Execution of 2013 work program

In preparation for the 3D Ocean Bottom Cable (?OBC?) Seismic survey on OPL 233, a contract for
Environmental Impact Assessment (EIA) has been awarded to Tidalflow Nigeria Limited. Tidalflow has
already completed the wet season sampling on schedule, and will undertake the sampling for dry
season during November 2013.

Seabed Hazard Survey: Further to an invitation to tender to qualified companies for a geohazard
survey over OPL 233, involving surveying the OPL 233 seafloor with sidescan sonar apparatus, a
preferred contractor has been selected and discussions towards the finalization of the contract and
mobilization to site are underway.

3D OBC Seismic Survey: Three companies were invited to tender for the contract to conduct the
survey to acquire 3D OBC Seismic Data. The JV Partners have completed the evaluation processes
with respect to the Technical and Commercial bids, along with the representative from NAPIMS.
Requisite site visits were carried out to do a physical evaluation of equipment tendered by the
bidders. The contract was subsequently awarded to the Geomarine, and discussions towards the
finalization and mobilization of the OBC seismic survey are underway.

3D OBC Data Processing: Similarly, tenders have been invited for the data processing of the 3D OBC
Seismic survey. The tenders have been evaluated and a preferred contractor has been identified with
award process to be finalized within the next couple weeks.

Nigeria, OPL 281: Re-interpretation of seismic and well data

Similar to OPL 233, SacOil has performed a technical review of the borehole and 3D seismic data on
the lease. Management is satisfied that, despite some uncertainties in the data, the current estimate
of contingent resources as reported by AGR TRACS, may be conservative and with further evaluation
it is our opinion that the resources may actually be more substantial than initially anticipated. The
potential increase in resources can be attributed to several deeper channel leads and prospects,
which holds a possibility of adding to the prospective resources of OPL 281.

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

At 12,265 square kilometres, Block 1 is the second largest petroleum exploration licence demarcated
in Malawi. SacOil has an exclusive 100% interest and operator status in this block.

Block 1 is located in the North-Western part of Malawi bordering Tanzania to the north and Zambia
to the west. The licence area 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 which may, therefore, potentially yield deposits of hydrocarbons.
Following the award of Block 1, in Malawi, December 2012, initial planning associated with the
environmental and social impact assessments are underway. In consultation with the Malawian
government, SacOil is currently targeting to have all environmental work completed by Q3 2014.

Botswana, Licenses 123, 124 and 125

SacOil has embarked on a process of collating all geological information available on the petroleum
prospectivity pertaining to these licences. A review of this information is currently underway. The
three licences cover an area of approximately 49,463 square kilometres.

Jordaan Fouche, VP Technical, commented:

?SacOil continues to make strides on understanding the technical and commercial merits of the
projects through the execution of the work programs on the assets. We remain confident and
optimistic that expenditures on the Nigerian assets will result in additions to the Company?s existing
resources and ultimate conversion to reserves and hydrocarbon production.?

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.

08 November 2013
Johannesburg


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Philip Dennis                                                       +44 (0) 20 7861 3919
Nick Lambert                                                        +44 (0) 20 7861 3936
Rollo Crichton-Stuart                                               +44 (0) 20 7861 3918

Date: 08/11/2013 11:45:00 Supplied by www.sharenet.co.za                     
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