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Sacoil Holdings Limited - Completion Of Phase 2 Development Programme - Lagia Oil Field

Release Date: 02/03/2016 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?)

COMPLETION OF PHASE 2 DEVELOPMENT PROGRAMME - LAGIA OIL FIELD

SacOil Holdings Limited, on behalf of its subsidiary, Mena International Petroleum Company Limited
("Mena"), is pleased to announce the successful completion of Phase 2 of the development programme and
the achievement of the production target of 1,000 bbl/d at its 100% owned Lagia oil field in Sinai, onshore
Egypt.

As reported previously, Phase 2 of the development program included:
1. The installation and commissioning of steam facilities for a thermal recovery process on existing
   production wells,
2. The drilling of five new thermal wells, and
3. The hydraulic stimulation of these five wells, specifically targeting the productive Nukhul geological
   formation, being the main producing reservoir, at approximately 1000 feet below mean sea level.
4. In addition one of the wells were deepened to investigate the reservoir and hydrocarbon potential of the
   underlying Thebes Formation.

All five thermal wells successfully intersected producible hydrocarbons in the Nukhul formation. In addition,
as reported previously, Lagia 15 was drilled to a total depth of 1,820ft and intersected the Nukhul formation
as well as the Thebes formation. Although the Nukhul Formation at this well location was not well
developed, it discovered producible oil in the Thebes formation. Post drilling analysis indicates that the
discovery in the Thebes formation is of a higher API gravity at 24 degrees API compared to the oil produced
from the Nukhul formation in this field. The reserves and resource attributable to the Thebes formation will
be included and the associated field Competent Persons Report (CPR) updated accordingly.

All 10 wells were placed on production and at the end of February 2016 reached a targeted wellhead
production rate of 1,000 bbl/d.

This development programme was successfully completed under budget with no health or safety incidents
reported.

Dr Thabo Kgogo, Chief Executive Officer of SacOil, commented,

"The completion of the Lagia phase 2 development programme and reaching our target of 1,000 bbl/d are
significant operational milestones for SacOil. We are pleased to have achieved our stated production target,
which represents another step towards our strategic aim to become a leading Pan African oil and gas
company engaged in Upstream, Midstream and Downstream activities.

Our technical team has been pivotal in unlocking value at the Lagia oil field, particularly from the Thebes
formation, which for the last 30 years has been explored and evaluated by a number of Independent Oil
Companies with very limited success. Our focus moving forward on Lagia will be to optimise production
commensurate with the current low oil price environment and to further evaluate and appraise the
discovery in the Thebes formation. Further updates will be announced in due course, as operations
progress.?

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.

JSE Sponsor

PSG Capital Proprietary Limited

2 March 2016

For further information please contact:

SacOil Holdings Limited                                                    +27 (0)10 591 2260
Bradley Cerff

finnCap Limited (Nominated Adviser and                                     +44 (0)20 72200500
broker)
Christopher Raggett / 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
Ben Romney / Helen Chan / Madeleine Seacombe


About SacOil
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: 02/03/2016 09:00:00 Supplied by www.sharenet.co.za                     
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