SACOIL HOLDINGS LIMITED - Results of Drilling Programme - Lagia Oil FieldRelease Date: 15/12/2015 15:45:00 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
(?SacOil? or ?the Company?)
RESULTS OF DRILLING PROGRAMME - LAGIA OIL FIELD
SacOil Holdings Limited, on behalf of its subsidiary, Mena International
Petroleum Company Limited ("Mena"), is pleased to announce an update on
the drilling of the Lagia 11, Lagia 15 and Lagia 16 wells, which forms
part of the Phase 2 field development operations at its 100% owned Lagia
oil field in Sinai, onshore Egypt.
As reported previously, the Lagia 11, Lagia 15 and Lagia 16 wells are part
of a five well drilling campaign aimed at increasing and optimising
production. The remaining wells to be drilled are Lagia 12 and 13, which
will target the Nukhul formation.
SacOil is pleased to announce that Lagia 11 was drilled to a depth of
1,434 ft below drill floor and encountered approximately 213 ft of gross
oil bearing Nukhul formation. The well was placed in production and is
producing oil with a gravity of 13 degrees API.
Lagia 15, the second well in the programme, was drilled to a depth of
1,820 ft below drill floor. The well intersected the Nukhul formation as
well the Thebes formation and discovered producible oil in both
formations. Preliminary results indicate that the discovery in the Thebes
formation is of a higher API gravity as compared to the oil produced from
the Nukhul formation in this field. Preliminary results also indicate that
the API gravity of the Thebes is above 24 API gravity. Further analysis
of the Thebes discovery will be concluded before Lagia 15 is placed in
Lagia 16, the third well in the programme was drilled to a depth of 1,430
ft below drill floor and encountered 213 ft of gross oil bearing and
potentially productive Nukhul formation and the well will be placed in
production. The oil intersected in Lagia 16 is expected to have similar
API gravity to the main producing Nukhul formation.
SacOil is now monitoring each of these wells and evaluating the potential
of applying stimulation techniques with a view to optimising flow rates
and achieving stabilised flow rates and production profile for the Lagia
Block. Further announcements will be made in this regard in due course.
Dr Thabo Kgogo, Chief Executive Officer of SacOil, commented,
"The discovery of a light oil in the Thebes formation is very significant
for the Lagia assets and for SacOil as a company. This discovery should
add to the field reserves and may add to production from the Lagia field
in the future.
The focus for our technical team now is to further evaluate these well
results to establish a better understanding of the potential stabilised
production rates from each well and the field as a whole. We are certainly
pleased with these initial results and look forward to the commencement
of our Lagia 12 and 13 wells. We remain on track to deliver on our
previously stated production milestone of 1,000 bopd by our financial year
More details on the results of the drilling, as well as progress on the
current operations, will be announced in due course, as operations
PSG Capital Proprietary Limited
15 December 2015
For further information please contact:
SacOil Holdings Limited +27 (0)10 591 2260
finnCap Limited (Nominated Adviser and +44 (0)20 72200500
Christopher Raggett and James Thompson
FirstEnergy Capital (Financial Adviser +44 (0)20 7448 0200
and Joint Broker UK)
Hugh Sanderson / David van Erp
Buchanan Communications Limited +44 (0)20 7466 5000
SacOil is a South African based independent African oil and gas company,
dual-listed on the JSE and AIM. The Company has a diverse portfolio of
assets spanning production in Egypt, exploration and appraisal in the
Democratic Republic of Congo, Malawi and Botswana, and midstream and
downstream operations including a gas pipeline project in Mozambique and
an oil terminal project in Equatorial Guinea. The Company continues to
evaluate industry opportunities throughout Africa as it seeks to establish
itself as a leading, full-cycle pan-African oil and gas company.
Date: 15/12/2015 03:45:00 Supplied by www.sharenet.co.za
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