SACOIL HOLDINGS LIMITED - Award of Crude Allocation by the NNCPRelease Date: 22/04/2016 08:00:00 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
(?SacOil? or ?the Company?)
AWARD OF CRUDE ALLOCATION BY THE NNPC
- SacOil and Energy Equity Resources (?EER?) (the ?Partners?)
signed a memorandum of understanding (?MOU?) to explore oil and
gas opportunities in the Republic of Nigeria.
- Pursuant to the initiative, SacOil and EER, was awarded a
twelve (12) month term contract for the purchase of Nigerian
Crude Oil Grades by the Nigerian National Petroleum Corporation
Overview of MOU
SacOil, a South African based independent African oil and gas
company and EER entered into a MOU to seek investment
opportunities in the business activities of the NNPC within the
Nigerian oil and gas sector. The Republic of Nigeria is one of
the most prolific oil and gas countries in Africa, with
significant investment opportunities available in the current
economic climate. The Partners have been evaluating a number
of opportunities that could provide sustainable revenue returns.
SacOil is pleased to announce the formation, at a minimal capital
cost to SacOil, of a joint venture company with EER called SacOil
Energy Equity Resources Limited (?SEER?). SEER is the
contracting party to the agreement for the sale and purchase of
Nigerian Crude Oil with the NNPC ("the Crude Oil Agreement").
The Crude Oil Agreement provides SEER with the right to acquire
crude oil from NNPC for onward sale. The amount of offtake by
SEER is dependent on the aggregate crude production in Nigeria
and the prevailing global oil price. The revenue generated from
the sale of the crude allocation will contribute meaningful
income to SacOil and will support SacOil?s growth and investment
strategy across the oil and gas value chain on the African
Commenting on the Crude Allocation, SacOil's CEO Dr Thabo Kgogo
?This announcement is aligned with our previously communicated
strategy to focus on cash generative, income producing
activities in both upstream, refining and downstream. Nigeria
is a prolific hydrocarbon nation and the largest exporter of
crude oil on the African continent. We are pleased to have
secured this crude allocation for trading as it provides us with
a structured and measured exposure to this attractive market.
We look forward to working with EER and the NNPC in future
opportunities in the Nigerian oil and gas sector.?
PSG Capital Proprietary Limited
22 April 2016
SacOil Holdings Limited +27 (0)10 591 2260
finnCap Limited (Nominated adviser +44 (0)20 7220 0500
Christopher Raggett / James Thompson
FirstEnergy Capital (Joint broker) +44 (0)20 7448 0200
Hugh Sanderson / David van Erp
Buchanan (Financial PR adviser) +44 (0)20 7466 5000
Ben Romney / Helen Chan / Madeleine email@example.com
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. The Public
Investment Corporation (SOC) Limited (?PIC?) is the largest
shareholder of SacOil. SacOil has partnered with the PIC, ENH,
Profin and Chinese Pipeline Petroleum Engineering 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. SacOil continues to evaluate upstream,
refining and downstream opportunities in other established and
prolific hydrocarbon basins in Africa.
For further information, please visit www.sacoilholdings.com.
Date: 22/04/2016 08:00:00 Supplied by www.sharenet.co.za
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