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Sacoil Holdings Limited - Commencement Of Drilling Operations And Progress Of Steam Injection - Lagia Oil Field

Release Date: 16/11/2015 09:00:00      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?)

COMMENCEMENT OF DRILLING OPERATIONS AND PROGRESS OF STEAM
INJECTION - LAGIA OIL FIELD

SacOil, through its subsidiary Mena International Petroleum
Company Limited (?Mena?), is pleased to announce it commenced
the drilling of the Lagia 11 well on 13 November 2015, at its
100% owned Lagia oil field in Sinai, onshore Egypt. This
forms part of the Phase 2 field development operations.

As reported previously, the Lagia 11 well is part of a five
well drilling campaign aimed at increasing and optimising
production.

The Lagia wells will be drilled using the contracted Petro
PDSO land rig, Shams 1. The five wells, Lagia 11, 12, 13, 14
and 15 will be targeting the main producing reservoir, the
Nukhul formation at approximately 1500 feet below mean sea
level.

The Phase 2 field development also includes the successful
installation and commissioning of steam facilities for a
thermal recovery process on the production wells.

The existing five production wells were successfully steamed
with the formation reacting positively by accepting the
injected steam as anticipated. The thermal recovery process
yielded positive results with an increase in production rates
observed after the first steam and soak cycle using
progressive cavity pumps.

The five existing wells were steamed and allowed to soak for a
number of days in order to heat up the reservoir and reduce
the oil viscosity before starting production. The final
program includes the steaming and thermal recovery of all the
wells in order to achieve a targeted production rate of 1,000
bbl/day.

The company successfully procured and is in the process of
installing ten new thermal well heads and tubing sucker rod
pumps, which have been customised specifically for the Lagia
field conditions and which will replace the progressive cavity
pumps.
More details on the results of the drilling, as well as
progress on the current operations, will be announced in due
course, as operations progress.

JSE Sponsor

PSG Capital Proprietary Limited

16 November 2015


For further information please contact:

SacOil Holdings Limited                   +27 (0)11 463 6884
Bradley Cerff

finnCap Limited (Nominated Adviser and    +44 (0) 20 7220 0500
broker)
Christopher Raggett and James Thompson

FirstEnergy Capital (Joint broker)        +44 (0) 20 7448 0200
Hugh Sanderson / David van Erp

About SacOil
SacOil is a South African based independent African oil and
gas company, dual-listed on the JSE and AIM, with business
operations in Egypt, the Democratic Republic of Congo (?DRC?),
the Republic of Malawi and the Republic of Botswana. SacOil
also operated in Nigeria until 19 May 2015. The Company has
partnered with the Public Investment Corporation SOC Limited
and the Instituto de Gest?o das Participac?es do Estado on a
project that entails the construction of a gas pipeline from
Mozambique to South Africa and the distribution and marketing
of gas in southern Africa. The Company continues to evaluate
opportunities   to  secure   high  impact   acreage  in  other
established and prolific hydrocarbon basins in Africa.

Date: 16/11/2015 09:00:00 Supplied by www.sharenet.co.za                     
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