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Sacoil Holdings Limited - Operations Update

Release Date: 10/03/2014 09:00:00      Code(s): SCL     
(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 HOLDINGS LIMITED
                                      (?SACOIL? OR THE ?COMPANY?)
                                           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 its on-going operational activities in Nigeria and

Satisfactory progress has been made across the existing portfolio of exploration and appraisal assets. The
Company also continues to evaluate a number of opportunities to secure new value accretive acreage in
established and prolific African hydrocarbon jurisdictions and basins.


-   Nigeria, OPL 233: 3D Seismic Data Acquisition project contractor commences mobilization process

-   Malawi, Block 1: Completion of the environmental screening study and approval of 2014 budget

Nigeria, OPL 233: 3D Seismic Data Acquisition project contractor commences mobilization process

In preparation for the scheduled 3D Seismic Data Acquisition project, the Environmental Impact Assessment
(?EIA?) on the block, handled by Tidalflow Nigeria Limited, has been completed with both wet and dry
season sampling carried out. While the wet season sampling has been completed and the result approved by
the Department of Petroleum Resources (?DPR?), the dry season sampling is presently undergoing
processing before being forwarded to the DPR. The Federal Ministry of Environment has also carried out the
required site verification and EIA registration processes. The final report on the Seabed Hazard Survey by
Epanoe Nigeria Limited has been delivered to, and accepted by the Joint Venture Partners as well as the
field?s seismic data acquisition contractor, Geomarine Systems Limited, following successful completion of
the work.

SacOil and its OPL 233 partners have commenced operations for the 3D Seismic Ocean Bottom Cable (OBC)
survey, with mobilization of equipment for the survey in progress.

The timeline envisages full mobilization to the site to be completed by the end of March 2014. To this extent,
various equipment including the requisite gun boats and seismic recording cables have been delivered,
whilst navigation equipment and seismic sensors are being air-freighted to compress the lead time to actual
recording of data. Following mobilization, the 3D OBC acquisition work is expected to commence early April
2014 and be completed by the end of July 2014, subject to operational contingencies and weather related
issues. Finalisation of formalities for the seismic data processing contract is ongoing.

The 3D seismic data will provide valuable subsurface information relevant for the quantification of the
licence?s resource potential, as well as the selection of an optimal drilling location. The Company expects the
processing of the raw data and interpretation of results to be completed by Q3, 2014. SacOil holds a 20%
interest in OPL 233.

Malawi, Block 1: Completion of the environmental screening study and approval of 2014 budget

In April 2013, SacOil initiated a satellite screening study associated with an environmental risk assessment
for a proposed exploration program over the license area, covering approximately 16 000 sq km across
northern Malawi. The study was successfully completed in December 2013.

At a meeting held in Lilongwe in December 2013, the results of the satellite study was presented to the
Malawi Department of Mines and the 2014 budget and work program was also presented and approved.

With the positive results associated with the satellite environmental work, planning of the environmental
and social impact assessments has now begun. In consultation with the Malawian government, SacOil is
currently targeting to have all environmental work completed by Q3 2014. The company holds a 100%
interest in Block 1.

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 over 15 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 March 2014


JSE Sponsor
Nedbank Capital

For further information please contact:

finnCap Limited (Nominated Adviser and Broker)                                              +44 (0) 20 7220 0500
Matthew Robinson / Christopher Raggett

FirstEnergy Capital (Joint Broker UK)                                                       +44 (0) 20 7448 0200
Majid Shafiq
Travis Inlow
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: 10/03/2014 09:00:00 Supplied by www.sharenet.co.za                     
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