SACOIL HOLDINGS LIMITED - Completion of first phase development Operations Lagia Oil fieldRelease Date: 28/01/2015 14:33:00 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
(?SacOil? or ?the Company?)
Completion of first phase development Operations ? Lagia Oil field
SacOil Holdings Limited ("SacOil") through its subsidiary Mena
International Petroleum Company Limited ("Mena") is pleased to
announce the successful on-time completion of phase 1 of the field
development operations at the Lagia oil field in Sinai, onshore Egypt.
- Successful completion of hydraulic stimulation on all five
- Phase 2 operations to commence by June 2015, installation of
steam facilities and the drilling of up to 5 additional wells
As previously reported, the aim of phase 1 was to stimulate and re-
complete the five existing production wells at the Lagia oil field in
order to increase production.
Operations commenced on the 4th January 2015 and initial production
indications are positive and the Company is confident that the
targeted average production of 350 barrels of oil a day will be
achievable from these five wells once they are in sustained
The oil produced from the Lagia field is trucked to the GPC (General
Petroleum Company) facilities, which is owned by Egyptian General
Petroleum Corporation, approximately 300 km from the Lagia field.
Payments for delivered crude are paid directly to Mena.
Following the successful completion of phase 1 the wells remain on
production and SacOil is preparing and planning a second phase of
field development and production optimisation to start by June 2015.
This second phase includes the installation of steam facilities for a
thermal recovery process on the existing production wells and the
drilling of up to five additional thermal wells at the Lagia oil
field, with the intent of further enhancing production and the
recovery of oil at the oil field.
Commenting on the completion of phase 1 development operations, Dr
Thabo Kgogo, SacOil CEO, said, "This success of our development
operation at the Lagia oil field is a key milestone for SacOil. It
marks our transformation from an exploration and production company
into realizing revenues from the sale of crude oil. The next phase of
our operations at the Lagia oil field will focus on increasing
production, as well as maintaining cost efficiencies and profitability
during this oil price cycle.?
?The lower oil price environment is something we are obviously
following very closely. For the time being our net cash position
remains positive and we remain committed to our strategic focus of
portfolio rationalization, capital restructuring and overall cost
PSG Capital Proprietary Limited
28 January 2015
For further information please contact:
SacOil Holdings Limited +27 (0)11 575
Bradley Cerff 7232
finnCap Limited (Nominated Adviser and Broker) +44 (0) 20 7220
Matthew Robinson / Christopher Raggett 0500
FirstEnergy Capital (Financial Adviser and +44 (0) 20 7448
Joint Broker UK) 0200
Instinctif Partners London (UK Investor +44 (0)20 7457
David Simonson / Anca Spiridon
Instinctif Partners Johannesburg (SA Investor +27 (0)11 447
Nicholas Williams / Tshepo Mophiring
Qualified Person Review
This release has been reviewed by Bradley Cerff, Executive Director,
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.
Date: 28/01/2015 02:33:00 Supplied by www.sharenet.co.za
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