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Sacoil Holdings Limited - Provisional Audited Results

Release Date: 31/05/2016 16:15:00      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" or together with its subsidiaries "the Group")


PROVISIONAL AUDITED RESULTS 
for the year ended 29 February 2016


OVERVIEW
The Group continues to make steady progress in its goal to become a pan-African oil and 
gas company, despite significant headwinds in the industry and global economy. Key highlights 
for the year ended 29 February 2016 include:

-  Completion of Phase 2 of the development plan at the Lagia Oil Field, Eqypt
-  Discovery of producible 24 degrees API gravity oil in the Thebes formation for the 
   Lagia Oil Field
-  Reorganisation of the Group's interest in Block III, in the Democratic Republic of Congo
-  Granting of a two-year extension to current exploration period of Block III
-  Recovery of USD10 million previously associated with the OPL 233 performance bond
-  Commencement of pre-feasibility studies on the Bioko Oil Terminal project
-  Post period, award of crude trading allocation in Nigeria

Dr Thabo Kgogo, Chief Executive Officer of SacOil, commented: "The 2016 financial year was 
characterised by operational and strategic progress against a challenging sector backdrop. 
It was a year in which we demonstrated our ability to deliver on core operational objectives 
and evolved further towards our strategic goal of becoming a pan-African oil and gas ('O&G') 
company with activities across the full industry value chain.

Our core priority for the year was the successful completion of Phase 2 of the development 
of the Lagia Oil Field in Egypt. We had set ourselves a target to achieve a peak production
capability of 1 000 bbls/d by the end of the financial year. This was an ambitious target 
as we knew the development of this asset would be complex as a result of the heavy oil in place. 
Despite the challenges we encountered we were delighted to announce that we successfully 
proved the production capability of this asset in line with our stated time frame. Having 
demonstrated the field's capacity, we have since returned to production levels more suited to 
the current oil price environment.

We continue to make good progress with the implementation of our strategic plan. Late in 2015 
we signed a Memorandum of Understanding with a consortium to conduct a detailed evaluation for 
the development of the Bioko Oil Terminal in Equatorial Guinea. The consortium tables a 
broad array of competencies, from engineering, procurement and construction through to 
international marketing and trading. Pre-feasibility studies of the project have commenced, 
the results of which aim to prove the commercial viability of the project and will determine 
the next steps with regards to SacOil's involvement. The studies are expected to be completed 
during the third quarter of the 2016 calendar year.

We recently made the difficult decision to withdraw our participation in the Mozambique pipeline 
development during the pre-feasibility stage of the project, due to certain changes introduced 
in the Joint Venture Agreement relating to the participants in the project, which impacted the 
equity stake attributable to SacOil. Accordingly, the Board made the decision not to proceed as 
a participant in the project. We wish the parties well in developing the project over the coming years.   

We continue to expand the business into the midstream segment, with the securing of a 12-month 
contract for the purchase of crude oil grades from the Nigerian National Petroleum Corporation 
for onward sale. The first lifting of the crude oil is expected to take place in the middle of 
June 2016 and should contribute positive cash flows to the Group over the contract period.
This diversification of our revenue generation and industry activities is in line with our 
previously stated growth strategy and marks a significant milestone for SacOil. 

With respect to the outstanding litigation matters previously reported on, the SacOil board and 
management team continue to defend the claims from Transcorp and Nigdel in relation to 
the Group's exit from OPL 281 and OPL 233, respectively. We remain committed to recovering all 
amounts owed by Transcorp and Nigdel and instituting the requisite counterclaims accordingly. 
Other litigation matters previously disclosed to shareholders are also still ongoing.

The SacOil board has now completed the evaluation of the findings of the previously documented 
forensic investigation and has implemented the recommendations provided in the report. The board 
has also completed the process of notifying regulatory authorities of the irregularities identified 
as it continues to resolve outstanding legacy issues inherited by the current management team.

The Group is owed R75.5 million by Encha Energy ("Encha") which became due and payable on 
29 February 2016. This amount remains unpaid as at the date of this announcement. The Group has 
been engaging with Encha since the year end to recover the amount and is in the process of 
enforcing its claim to recover these funds.

We thank you, our shareholders, for your continued support of our vision. Although there remains 
much to be done to realise the full potential of our strategy, we expect to accelerate progress 
in the coming year by intensifying the SacOil team's efforts to secure cash generative assets to 
grow the business."


OPERATIONAL REVIEW
The Lagia development programme was successfully completed under budget with no HSE incidents 
reported, resulting in the attainment of the targeted production capability of 1 000 bbls/d. 
We have since scaled back production to levels more suitable in the current oil price environment. 
Post-drilling analysis indicated that the discovery in the deeper Thebes formation is a lighter crude 
with higher API gravity of 24 degrees API, when compared to the oil produced from the Nukhul formation 
in this field with an API gravity of 11 degrees API.

With the granting of a two-year extension to the current exploration period of Block III from 
27 January 2016 to 26 January 2018, by the Minister of Hydrocarbons of the Democratic Republic 
of Congo ("DRC"), Total E&P RDC ("Total") as operator of Block III, has commenced with the 
acquisition of a 2D seismic survey. This extension sets the platform for the operator to acquire 
the seismic data, interpret the results and determine the associated prospectivity. This seismic 
acquisition programme is in fulfilment of the work programme obligations.

Activity on the Group's exploration assets was minimal during the year as the focus shifted to 
expending available cash resources on a cash-generative asset.

FINANCE REVIEW
For the year ended 29 February 2016 the Group reported a profit of R39.6 million (2015: loss of 
R277.0 million), basic EPS of 1.64 cents (2015: basic loss per share of 8.54 cents) and headline 
EPS of 1.04 cents (2015: headline loss per share of 4.67 cents) as it continued to benefit from 
the weakening of the Rand which contributed R154.6 million (2015: R78.6 million) in foreign exchange 
gains on the Group's US Dollar denominated financial assets. Further contributing to this profit 
were the gain of R103.6 million achieved on the Reorganisation of the Group's holding in Block III 
and the non-recurrence of the one-off write-downs of R420.2 million related to the restructuring of 
the Group's portfolio of assets in the prior year. The Group's foreign exchange gains and the 
gain on Reorganisation are included in other income.

The results of the Group also reflect the impact of a Lagia impairment charge of R76.5 million 
(2015: RNil) emanating from the decline in oil prices as at 29 February 2016, which affected the 
valuation of the Group's oil and gas properties by R56.8 million and other intangible assets by 
R19.7 million. The Competent Person's Report has confirmed that the 2P reserves at Lagia have risen 
from 6.2 million barrels to 6.9 million barrels. As such, the impairment charge is a reflection of 
the decline in oil prices, and is offset by additional foreign exchange gains totalling R61.5 million 
(2015: R8.7 million) on the translation of these assets included in other comprehensive income.

The delay in activities on Block III due to the civil unrest in the area and in obtaining an 
extension of the operating licence resulted in a further impairment of R26.1 million 
(2015: R23.8 million) of the contingent consideration receivable, as reported in the interim results, 
which reflects the deferral of its receipt by a year. These impairment charges are included under 
other operating costs. 

Reorganisation of the holding in Block III ("Reorganisation")
Prior to the Reorganisation, Semliki SARL ("Semliki") had a direct 18.3% participating 
interest in Block III in the DRC alongside partners Total E&P RDC (66.7%) ("Total") and the 
DRC Government (15%). Semliki was 68% directly owned by RDK Mining Proprietary Limited ("RDK"), 
a wholly-owned subsidiary of SacOil, with the remaining 32% held by Divine Inspiration Group 
Proprietary Limited ("DIG").

During the year SacOil initiated a process to reorganise the holding of its indirect interest 
in Block III ("the Interest"). The transaction agreements implementing the Reorganisation were 
concluded on 29 February 2016. This resulted in the disposal of the Group's shareholding in 
Semliki for USD1 (R16) and the incorporation of SacOil DRC SARL ("SacOil DRC"), in which 
RDK owns 100% of the issued shares. The effect of the Reorganisation is the transfer of the 
Group's share of assets and liabilities (including the Interest), previously owned in Semliki, 
to SacOil DRC, pursuant to various agreements with DIG. This Reorganisation now enables SacOil 
to directly represent its interest in Block III and to have a direct line of sight of the 
activities of the block. SacOil DRC has an effective 12.5% participating interest in Block III.

As part of the reorganisation, DIG indemnified the Group of outstanding taxes relating to 
historical farm-outs of Block III by Semliki. This contributed to the gain of R103.6 million 
on the derecognition of current tax payable by the Group as further explained in note 9.

Revenue
The Group has continued to invest in the planned development activities at Lagia to achieve 
higher production levels. Production for the year was therefore affected by these development 
activities. Although the Group's revenue increased by 127% relative to the prior year, it 
remains minimal. Now that Phase 2 of the planned development activities has been completed we 
look forward to optimising the production from the field to establish a sustained level of 
production that will grow the revenue of the Group over the next financial year.

Other operating costs
The management of the Group's costs was a key priority during the year ended 29 February 2016. 
Excluding the impact of the impairment charges totalling R102.6 million (2015: R23.8 million) 
and the prior-year write-downs of R420.2 million highlighted above, the Group's cost base 
increased by 39% to R91.8 million (2015: R66.1 million). This increase is primarily attributable 
to the inclusion of a full year's operating costs relating to Lagia relative to only four months 
since acquisition in the prior year.

Investment income
During the financial year the Company announced the conclusion of a settlement agreement with 
EERNL. The revised terms of the historical loans advanced to EERNL no longer provide for interest 
on the outstanding loans. As such, investment income for the year decreased by 70%.

Exploration and evaluation ("E&E") assets
Developments in the industry led the Group to defer expenditure on exploration activities in an 
effort to prioritise focus on the Lagia Oil Field which generates cash for the Group. Consequently, 
there was minimal expenditure on the Group's E&E assets. The elimination of DIG's interest in 
Block III from the Group results pursuant to the Reorganisation resulted in a decrease in 
E&E assets by 32%. 

Oil and gas ("O&G") properties
The Group expended R55.4 million on Phase 2 (2015: R7.3 million on Phase 1) of the Lagia 
development programme which improved the Group's production profile and increased O&G properties. 
Foreign exchange gains totalling R46.8 million (2015: R5.8 million) on translation of the 
US Dollar-based O&G assets also contributed to an increase in these assets. The impairment charge 
of R56.8 million outlined above and depletion charges of R2.3 million (2015: R0.3 million) 
off-set these increases. 

Other financial assets (non-current and current)
The Group's other financial assets ("OFA") are primarily denominated in US Dollars. The continued 
weakening of the Rand contributed R213.4 million (2015: R52.6 million) in foreign exchange gains 
on the contingent consideration, loans due from EERNL and the Transcorp refund. Interest on the 
unwinding of the time value discount applied on initial recognition further increased OFA by 
R38.0 million (2015: R121.5 million). 

The effect of the Reorganisation is that the Group now retains and reports on only its effective 
share of assets and liabilities relating to Block III. As such, R202.7 million of the contingent 
consideration attributable to DIG was derecognised on completion of the Reorganisation. The part 
repayments of R63.1 million (R14.8 million) by EERNL and Greenhills and the impairment charge of 
R26.1 million (2015: R23.8 million) further decreased OFA.

The net effect of these transactions on the Group's OFA is a decrease of R40.5 million (6%) year 
on year. The Group's OFA are disclosed in note 6.

Cash and cash equivalents
The Group's balances decreased by R122.4 million as a result of the capital expenditure of 
R55.4 million (2015: R7.3 million) relating to Lagia, business development expenditure of 
R13.2 million (2015: R18.6 million) and operating costs of R53.8 million (2015: R24.3 million).

In June 2015, the Group benefited from the part repayment of R63.1 million (USD5 million) of the 
EERNL loan which was off-set by the settlement of the Group's indebtedness to EERNL. The Company's 
subsidiary, SacOil 233 Nigeria Limited held this amount in its bank account on behalf of EERNL 
with respect to the cash collateral of USD10 million which previously secured the OPL 233 performance 
bond. Upon the release of the cash collateral EERNL utilised these funds to part settle the loans 
owed to the Group.

Current tax payable
The tax indemnity provided by DIG and Semliki as part of the Reorganisation effectively eliminated 
R199.5 million in taxes payable. These taxes had historically been incurred by Semliki pursuant to 
a farm-out of Block III which solely benefited DIG.

Commitments
The Group's capital commitments have decreased by 41% following the completion of Phase 2 of the 
Lagia development plan.

GOING CONCERN
The Board has performed an assessment of the Group's operations relative to available cash 
resources and is confident that the Group is able to continue operating for the next 12 months. 
The Group's summarised provisional consolidated audited financial statements presented have been 
prepared on a going concern basis.

CHANGES IN DIRECTORATE
Mr Gontse Moseneke did not offer himself for re-election as a Non-executive director at the 
Annual General Meeting of the Company held on 1 October 2015. He subsequently retired as a 
director of the Company with effect from 1 October 2015.

LITIGATION
Litigation proceedings previously disclosed to shareholders are still ongoing. The Group 
continues to defend the claims made by Transcorp, Nigdel, Mr Joe Modibane and Mr Robin Vela, 
as previously disclosed.

Outlook
We continue to make good progress with the implementation of our strategic plan. The challenges 
that exist in the sector are likely to continue over the next 12 months and will require us to 
continue to operate effectively at a lower oil price. As a result of our stable financial 
position, which is underpinned by a diverse portfolio with near term revenue generation potential 
and no debt, as well as the Board's strategy to diversify the Company's operations, SacOil 
remains in a strong position to see out this period and emerge stronger. Through an improved 
focus on Corporate Governance under the current management team combined with the support of 
its institutional shareholder register, SacOil is able to mitigate the risks and challenges 
that currently exist and will continue to look for opportunities to grow into a sustainable, 
pan-African integrated energy company.

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. 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.


SUMMARISED PROVISIONAL CONSOLIDATED AUDITED STATEMENT OF COMPREHENSIVE INCOME

                                                                  2016           2015
                                                   Note          R'000          R'000
Revenue                                                          4 746          2 095 
Cost of sales                                                  (15 286)        (3 225)
Gross loss                                                     (10 540)        (1 130)
Other income                                                   258 239        103 334 
Other operating costs                                         (194 429)      (510 106)
Profit/(loss) from operations                                   53 270       (407 902)
Investment income                                               46 744        158 052 
Finance costs                                                       (4)            (1)
Profit/(loss) before taxation                                  100 010       (249 851)
Taxation                                                       (60 422)       (27 178)
Profit/(loss) for the year                                      39 588       (277 029)
                              
Other comprehensive income:                              
Items that may be reclassified to profit or loss 
  in subsequent periods:
Exchange differences on translation of foreign operations       61 460          8 717 
Other comprehensive income for the year net of taxation         61 460          8 717 
Total comprehensive income/(loss) for the year                 101 048       (268 312)
                              
Profit/(loss) attributable to:                              
Equity holders of the parent                                    53 584       (269 216)
Non-controlling interest                                       (13 996)        (7 813)
Profit/(loss) for the year                                      39 588       (277 029)
                              
Total comprehensive income/(loss) attributable to:                              
Equity holders of the parent                                   115 044       (260 499)
Non-controlling interest                                       (13 996)        (7 813)
Total comprehensive income/(loss) for the year                 101 048       (268 312)
                              
Earnings/(loss) per share                               
Basic (cents)                                         4           1.64          (8.54)
Diluted (cents)                                       4           1.64          (8.54)
                              


SUMMARISED PROVISIONAL CONSOLIDATED AUDITED STATEMENT OF FINANCIAL POSITION

                                                                  2016           2015
                                                   Note          R'000          R'000
ASSETS                              
Non-current assets                              
Exploration and evaluation assets                               50 975         75 950 
Oil and gas properties                                5        166 030        122 870 
Other financial assets                                6        253 799        345 753 
Property, plant and equipment                                    1 075            343 
Other intangible assets                               7         57 845         61 096 
Total non-current assets                                       529 724        606 012 
Current assets                              
Other financial assets                                6        383 145        331 641 
Inventories                                                      9 330          6 642 
Trade and other receivables                                      3 405          7 153 
Cash and cash equivalents                                      107 349        229 431 
Total current assets                                           503 229        574 867 
Asset held for sale                                                  -         21 840 
Total assets                                                 1 032 953      1 202 719 
                              
EQUITY AND LIABILITIES                              
Shareholders' equity                              
Stated capital                                        8      1 216 504      1 216 504 
Reserves                                                        77 963         15 607 
Accumulated loss                                              (375 253)      (448 655)
Equity attributable to equity holders of parent                919 214        783 456 
Non-controlling interest                                             -          4 417 
Total shareholders' equity                                     919 214        787 873 
Liabilities                              
Non-current liabilities                              
Deferred tax liability                                          78 526         97 146 
Total non-current liabilities                                   78 526         97 146 
Current liabilities                              
Other financial liabilities                                          -         57 889 
Current tax payable                                             12 851        212 417 
Trade and other payables                                        22 362         25 554 
Total current liabilities                                       35 213        295 860 
Total liabilities                                              113 739        393 006 
Liabilities directly associated with asset held for sale             -         21 840 
Total equity and liabilities                                 1 032 953      1 202 719 

Number of shares in issue (000's)                            3 269 836      3 269 836 
Net asset value per share (cents)                                28.11          24.10
Net tangible asset value per share (cents)                       26.55          21.77


SUMMARISED PROVISIONAL CONSOLIDATED AUDITED STATEMENT OF CHANGES IN EQUITY

                                                                                                         Total equity                     
                                                   Foreign        Share-                                 attributable           Non-          
                                      Stated      currency         based                                    to equity    controlling          
                                     capital   translation       payment          Total    Accumulated     holders of       interest          Total
                                     (Note 8)      reserve       reserve       reserves           loss     the parent         ("NCI")        equity
                                       R'000         R'000         R'000          R'000          R'000          R'000          R'000          R'000
Balance at 28 February 2014        1 109 977             -         6 002          6 002       (179 427)       936 552         12 218        948 770 
Changes in equity:                                                                                 
Loss for the year                          -             -             -              -       (269 216)      (269 216)        (7 813)      (277 029)
Other comprehensive income 
  for the year                             -         8 717             -          8 717              -          8 717              -          8 717 
Total comprehensive income/(loss) 
  for the year                             -         8 717             -          8 717       (269 216)      (260 499)        (7 813)      (268 312)
Issue of shares                      106 527             -             -              -              -        106 527              -        106 527 
Share options issued                       -             -           888            888              -            888              -            888 
Acquisition of non-controlling
  interest                                 -             -             -              -            (12)           (12)            12              -   
Total changes                        106 527         8 717           888          9 605       (269 228)      (153 096)        (7 801)      (160 897)
Balance at 28 February 2015        1 216 504         8 717         6 890         15 607       (448 655)       783 456          4 417        787 873 
Changes in equity:                                                                                 
Profit/(loss) for the year                 -             -             -              -         53 584         53 584        (13 996)        39 588 
Other comprehensive income 
  for the year                             -        61 460             -         61 460              -         61 460              -         61 460 
Total comprehensive income/(loss) 
  for the year                             -        61 460             -         61 460         53 584        115 044        (13 996)       101 048 
Share options issued                       -             -           896            896              -            896              -            896 
Acquisition of non-controlling 
  interest                                 -             -             -              -         19 818         19 818        (19 818)             - 
Disposal of Semliki (note 9)               -             -             -              -              -              -         29 397         29 397 
Total changes                              -        61 460           896         62 356         73 402        135 758         (4 417)       131 341 
Balance at 29 February 2016        1 216 504        70 177         7 786         77 963       (375 253)       919 214              -        919 214


SUMMARISED PROVISIONAL CONSOLIDATED AUDITED STATEMENT OF CASH FLOWS

                                                                  2016           2015
                                                  Notes          R'000          R'000
Cash flows from operating activities                              
Cash used in operations                                        (81 375)       (39 130)
Interest income                                                  8 756          6 962
Finance costs                                                       (4)            (1)
Net cash used in operating activities                          (72 623)       (32 169)
Cash flows from investing activities                              
Purchase of property, plant and equipment                       (1 063)          (234)
Purchase of exploration and evaluation assets                     (873)       (69 119)
Purchase of oil and gas properties                    5        (55 444)        (7 270)
Purchase of other intangible assets                   7           (409)          (136)
Acquisition of subsidiary                                            -        (44 540)
Disposal of subsidiary                                9           (107)             -   
Payments received for other financial assets                    63 088         13 461 
Net cash from/(used in) investing activities                     5 192       (107 838)
Cash flows from financing activities                              
Settlement of borrowings                                             -        (20 461)
Proceeds from other financial liabilities                            -            420 
Repayments of other financial liabilities                      (61 092)             -   
Net cash used in financing activities                          (61 092)       (20 041)
Total movement in cash and cash equivalents for the year      (128 523)      (160 048)
Foreign exchange gains on cash and cash equivalents              6 441          7 899
Cash and cash equivalents at the beginning of the year         229 431        381 580
Cash and cash equivalents at the end of the year               107 349        229 431


NOTES
1  BASIS OF PREPARATION
   The summarised provisional consolidated audited financial statements of the Group for the year 
   ended 29 February 2016 have been prepared in accordance with the Group's accounting policies, 
   which comply with the recognition and measurement criteria of International Financial 
   Reporting Standards, and the presentation and disclosure requirements of IAS 34 - Interim 
   Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting 
   Practices Committee, the Financial Reporting Pronouncements as issued by Financial Reporting 
   Standards Council, the Listings Requirements of the JSE Limited for provisional reports and 
   the Companies Act of South Africa (No. 71 of 2008, as amended). The accounting policies applied 
   in the preparation of the results for the year ended 29 February 2016 are consistent with those 
   adopted in the financial statements for the year ended 28 February 2015 except as noted below. 

   The Group has adopted the amendments to IFRS 2 - Share-based Payments which clarifies the 
   definition of a "vesting condition". The vesting condition under the Group Share Option Scheme 
   is for employees to remain in service.

   The Group further adopted the amendment to IFRS 8 - Operating Segments. Disclosures required 
   by this amendment are provided in note 3.

   These summarised provisional consolidated audited financial statements have been prepared on 
   a going concern basis. 

   All monetary information is presented in the functional currency of the Company, being 
   South African Rand.


2  AUDITORS' AUDIT REPORT
   The directors take full responsibility for the preparation of these summarised provisional 
   consolidated audited financial statements. These summarised provisional consolidated audited 
   financial statements for the year ended 29 February 2016 have been prepared under the supervision 
   of the Chief Financial Officer, Mr Damain Matroos CA(SA). These summarised provisional consolidated 
   audited financial statements, which have been derived from the audited consolidated annual financial 
   statements for the year ended 29 February 2016 and with which they are consistent in all material 
   respects, have been audited by Ernst & Young Inc. Their unmodified audit opinions on the consolidated 
   financial statements and on the summarised provisional consolidated audited financial statements are 
   available for inspection at the registered office of the Company. The auditor's report does not 
   necessarily report on all the information contained in this report. Shareholders are therefore 
   advised that, in order to obtain a full understanding of the nature of the auditor's engagement, 
   they should obtain a copy of the auditor's report together with the accompanying consolidated audited 
   financial statements from the Company's registered office.


3  SEGMENT REPORTING
   The Group operates in six geographical locations which form the basis of the information 
   evaluated by its chief operating decision-maker. For management purposes the Group is organised 
   and analysed by these locations. These locations are: South Africa, Egypt, Nigeria, DRC, 
   Botswana and Malawi. Operations in South Africa relate to head office activities of the Group 
   that include the general management, financing and administration of the Group.

                                        Egypt       Nigeria           DRC        Malawi      Botswana  South Africa  Eliminations  Consolidated
                                        R'000         R'000         R'000         R'000         R'000         R'000         R'000         R'000
   2016
   Revenue                              4 746             -             -             -             -             -             -         4 746 
   Cost of sales                      (15 286)            -             -             -             -             -             -       (15 286)
   Gross loss                         (10 540)            -             -             -             -             -             -       (10 540)
   Other income                             -        52 496       106 026             -             -       136 554       (36 837)      258 239 
   Investment income                        -           383        26 426             -             -        19 935             -        46 744 
   Finance costs                            -             -             -             -             -            (4)            -            (4)
   Other operating expenses           (98 158)      (31 327)      (28 975)            -        (2 711)      (70 095)       36 837      (194 429)
   Taxation                                 -             -       (65 706)            -             -         5 284             -       (60 422)
   (Loss)/profit for the year        (108 698)       21 552        37 771             -        (2 711)       91 674             -        39 588 
                                                                                 
   Segment assets - non-current       223 440             -       246 884           259           146       263 949      (204 954)      529 724 
   Segment assets - current            28 791       152 916            32             -             2       321 488             -       503 229 
   Segment liabilities - non-current (117 297)            -      (162 794)            -        (3 389)            -       204 954       (78 526)
   Segment liabilities - current       (6 321)         (281)            -             -             -       (28 611)            -       (35 213)

                                        Egypt       Nigeria           DRC        Malawi      Botswana  South Africa  Eliminations  Consolidated
                                        R'000         R'000         R'000         R'000         R'000         R'000         R'000         R'000
   2015
   Revenue                              2 095             -             -             -             -             -             -         2 095 
   Cost of sales                       (3 225)            -             -             -             -             -             -        (3 225)
   Gross loss                          (1 130)            -             -             -             -             -             -        (1 130)
   Other income                             -        31 384         6 993             -             6        87 757       (22 806)      103 334 
   Investment income                        -        29 595        22 486             -             -       117 455       (11 484)      158 052 
   Finance costs                            -             -            (1)            -             -             -             -            (1)
   Other operating expenses            (8 182)      (13 265)      (23 775)            -          (500)     (478 067)       13 683      (510 106)
   Taxation                                 -             -       (30 117)            -             -         2 939             -       (27 178)
   (Loss)/profit for the year          (9 312)       47 714       (24 414)            -          (494)     (269 916)      (20 607)     (277 029)
                                                                                
   Segment assets - non-current       203 074             -       312 042         1 197           387       238 163      (148 851)      606 012 
   Segment assets - current            17 852       226 456        41 776             -             1       288 782             -       574 867 
   Segment liabilities - non-current  (19 315)      (59 294)     (165 312)            -             -        (2 076)      148 851       (97 146)
   Segment liabilities - current       (6 457)      (57 917)     (171 582)            -             -       (59 904)            -      (295 860)

   Business segments
   The operations of the Group comprise one class of business, being oil and gas exploration and 
   production. The activities currently undertaken in Mozambique and Equatorial Guinea related to 
   the Mozambican pipeline and the development of the Bioko Oil Terminal, respectively, are not 
   significant at this stage and have not been separately disclosed. These activities therefore 
   do not meet the recognition criteria for operating segments.

   Revenue
   The Group's reported revenue is generated from one customer, the Egyptian General Petroleum 
   Corporation ("EGPC") with respect to oil sales. This revenue is attributed to the Egypt segment.

   Taxation - Egypt
   No income or deferred tax has been accrued by Mena as the Concession Agreement between the 
   EGPC, the Ministry of Petroleum and Mena provides that the EGPC is responsible for the 
   settlement of income tax on behalf of Mena, out of EGPC's share of petroleum produced. 
   The Group has elected the net presentation approach in accounting for this deemed income tax. 
   Under this approach Mena's revenue is not grossed up for income tax payable by EGPC on behalf 
   of Mena. Consequently, no income or deferred tax is accrued.


                                                                  2016           2015
                                                                 R'000          R'000
4  EARNINGS/(LOSS) PER SHARE   
   Basic (cents)                                                  1.64          (8.54)
   Diluted (cents)                                                1.64          (8.54)
   Profit/(loss) attributable to equity holders of the parent 
     used in the calculation of the basic and diluted loss 
     per share                                                  53 584       (269 216)
                              
   Weighted average number of ordinary shares used in the 
     calculation of basic earnings/(loss) per share (000's)  3 269 836      3 151 081 
   Issued shares at the beginning of the reporting 
     period (000's)                                          3 269 836      3 086 169 
   Effect of shares issued during the reporting period 
     (weighted) (000's)                                              -         64 912 
   Add: Dilutive share options (000's)                             901              - 
   Weighted average number of ordinary shares used in the 
     calculation of diluted earnings/(loss) per share 
     (000's)                                                 3 270 737      3 151 081 
                              
   Headline earnings/(loss) per share                    
   Basic (cents)                                                  1.04          (4.67)
   Diluted (cents)                                                1.04          (4.67)
                              
   Reconciliation of headline earnings/(loss)                    
   Profit/(loss) attributable to equity holders of the parent   53 584       (269 216)
   Adjusted for:                    
   Impairment of non-current asset held for sale                     -        194 066 
   Impairment of oil and gas assets                             56 849              - 
   Impairment of other intangible assets                        19 659              - 
   Write-off of property, plant and equipment                        5              - 
   Gain on acquisition of subsidiary                                 -        (24 718)
   Gain on reorganisation of interest in Block III            (103 624)             - 
   Tax effects of adjustments                                    7 591        (47 417)
   Headline earnings/(loss)                                     34 064       (147 285)


                                                                                Total
                                                                                R'000
5  OIL AND GAS PROPERTIES          
   Cost          
   At 1 March 2014                                                                  - 
   Acquisition of Mena                                                        110 063 
   Additions                                                                    7 270 
   Translation of foreign operations                                            5 812 
   At 28 February 2015                                                        123 145 
   At 1 March 2015                                                            123 145 
   Additions                                                                   55 444 
   Translation of foreign operations                                           46 833 
   At 29 February 2016                                                        225 422 
                    
   Depletion and impairment          
   At 1 March 2014                                                                  - 
   Depletion                                                                     (275)
   At 28 February 2015                                                           (275)
   At 1 March 2015                                                               (275)
   Impairment (note 10)                                                       (56 849)
   Depletion                                                                   (2 268)
   At 29 February 2016                                                        (59 392)
                    
   Net book value          
   At 28 February 2014                                                              - 
   At 28 February 2015                                                        122 870 
   At 29 February 2016                                                        166 030 

   The depletion charge for 2016 represents a full year of depletion of the oil and 
   gas asset. The depletion charge for 2015 represents the portion since the acquisition 
   of the oil and gas properties in October 2014. 

   Details pertaining to the impairment charge are provided in note 10.


                                                                  2016           2015
                                                                 R'000          R'000
6  OTHER FINANCIAL ASSETS                              
   Non-current:                              
   Deferred consideration on disposal of 
     Greenhills Plant (1)                                             -          1 718
   Advance payment against future services (2)                        -         68 627
   Loan due from EERNL (3)                                       57 484         37 732
   Contingent consideration (4)                                 196 315        237 676
                                                                253 799        345 753
   Current:                              
   Loan due from EERNL (3)                                      173 571        183 243
   Loan due from DIG (5)                                              -         51 037
   Transcorp refund (6)                                         305 764        220 824
   Advance payment against future services (2)                   75 490              -
   Deferred consideration on disposal of 
     Greenhills Plant (1)                                         1 891          1 891
                                                                556 716        456 995
   Less: Provision for impairment (3)                          (173 571)      (125 354)
                                                                383 145        331 641
                                                                636 944        677 394

   (1)  The last instalment of R2.0 million of the deferred consideration, due in October 2016, 
        has been reclassified as short term. The present value of this future receivable is R1.9 million. 

   (2)  The amount due represents Encha Energy's indebtedness to SacOil Holdings Limited under the 
        Acknowledgement of Debt Agreement concluded between the two parties on 28 February 2013. 
        The financial asset recognised at 29 February 2016 is R75.5 million (2015: R68.6 million) 
        representing the present value of this receivable. Interest amounting to R6.9 million 
        (2015: R6.3 million) arising from the unwinding of the discount applied to the future 
        receivable on initial recognition, has been included in investment income. The receivable 
        was due on 29 February 2016 and has been classified as short term. Refer to note 15 for 
        further details on this loan. 

   (3)  At 29 February 2016 the long-term loan receivable of R57.5 million (2015: R37.7 million) 
        represents the present value of future amounts (R80.2 million (2015: R57.9 million) 
        ($5 million)) due from EERNL, to be recovered from its share of OML 113's cash flows 
        expected in 2019 and 2020. Interest amounting to R4.4 million (2015: RNil million) arising 
        from the unwinding of the discount applied to the future receivable on initial recognition 
        has been included in investment income in profit or loss. Foreign exchange gains totalling 
        R15.3 million (2015: R13.0 million) have been recognised in other income on profit or loss 
        in relation to this long-term loan.

        During the year EERNL repaid $5.0 million of the short-term loan from its share of the cash 
        collateral. The remainder of the loan is expected to be recovered within a year from 
        recoveries from Nigdel pursuant to the termination of EERNL's and SacOil's participation 
        in OPL 233. The recovery from Nigdel of R173.6 million (2015: R125.4 million) has been 
        provided for pending the finalisation of arbitration proceedings. The increase in the loan 
        and the impairment provision of R48.2 million is attributable to foreign exchange losses as 
        the amount provided for is denominated in US Dollars. 

        SacOil agreed to an interest freeze on the outstanding loans from 30 November 2014. The loans 
        are denominated in US Dollars. 

   (4)  The Farm-In Agreement between Semliki and Total provides for a cash payment by Total to 
        Semliki upon the occurrence of certain future events ("contingent consideration"). As there 
        is a contractual right to receive cash from Total, Semliki has historically recognised a 
        financial asset in its statement of financial position. The asset was initially recognised at 
        its fair value. Subsequently, the financial asset meets the definition of a loan and receivable, 
        and is accounted for at amortised cost taking into account interest revenue and currency 
        movements. At each reporting date SacOil revises its estimate of receipts from the financial 
        asset in line with the requirements of IAS 39. Included in the statement of comprehensive 
        income at 29 February 2016 is an impairment loss of R26.1 million (2015: R23.8 million) 
        representing the write-down of future expected cash flows from the contingent consideration 
        for the Block III farm-outs in March 2011 and March 2012. The write-down, which is reflective 
        of the time value of money, arose as a result of the delays in activities on Block III due 
        to civil unrest in the area and in obtaining an extension to the operating licence. 
        The extension has, however, now been granted. Consequently, this defers the receipt of the 
        contingent consideration by a year. A deferred tax charge amounting to R36.6 million 
        (2015: R6.5 million) was recognised in the statement of comprehensive income. 
        At 29 February 2016 SacOil's rights to the contingent consideration, previously held 
        through Semliki, were transferred to SacOil DRC SARL in line with the reorganisation 
        described in note 9. The assumptions used to measure the contingent consideration are 
        detailed below:

        Probability of exploration success (single well)                            26%
        Probability of at least one success from two wells                          45%
        Probability of successful completion given exploration success              89%
        Discount rate                                                               10%
        First Investment Decision Date ("FID")                         28 February 2021
        First Oil Date ("FOD")                                         28 February 2025
        Valuation date                                                 29 February 2016
        Contingent consideration          
         FID                                                                $29 000 000
         FOD                                                                $25 000 000

        Should the probability factors applied to the valuation model be increased or decreased by 
        10%, all other variables held constant, post-tax profit would have been R45.5 million 
        (2015: R55.2 million) higher and R45.5 million (2015: R55.2) million lower, respectively. 

   (5)  The loan comprised the taxes recoverable from DIG with respect to the capital gains tax 
        payable by Semliki on the farm-out of the 6.67% interest in Block III in March 2012, 
        which transaction was initiated by and solely benefited DIG. The loan was interest free, 
        unsecured, has no fixed repayment terms and was denominated in US Dollars. On 29 February 2016 
        the Group completed the restructuring of its holding in Block III as detailed in note 9, 
        which resulted in the elimination of its obligations relating to these foreign taxes. 
        Consequently, the asset previously recognised to reflect the recovery of taxes payable by 
        the Group from DIG has been derecognised. 

   (6)  The Transcorp Refund represents amounts recoverable from Transcorp under the provisions of 
        the Farm-in Agreement ("FIA"), following the termination of SacOil 281's participation in 
        OPL 281. SacOil paid R44.1 million ($6.25 million) on behalf of its subsidiary SacOil 281 
        and R43.6 million ($6.25 million) on behalf of EER 233 Nigeria Limited for a signature bonus 
        and other costs relating to OPL 281, which contractually will be refunded by Transcorp with 
        interest, on the signature bonus component, at 20% per annum. The FIA provides for the accrual 
        of interest between the date of payment of these amounts and the date of exit from the asset, 
        being 3 December 2014. As such there is no interest accrued in the current year. Under the 
        terms of the settlement agreement concluded with EERNL in 2015 EERNL ceded its share of the 
        refund as settlement of the OPL 281 loan owed to SacOil. 

        At 29 February 2016 the Company receivable of R152.9 million (2015: R110. 4 million) with 
        respect to the above transactions represents SacOil's entitlement to EERNL's share of the 
        Transcorp refund. The Group's receivable of R305.8 million (2015: R220.8 million) further 
        includes SacOil 281's share of the refund. Pursuant to the exit SacOil will not have future 
        commitments and obligations associated with the appraisal of OPL 281. 

        The fair value of other financial assets is given in note 11.

                                                                 Other
                                               Computer     intangible
                                               software         assets          Total
                                                  R'000          R'000          R'000
7  OTHER INTANGIBLE ASSETS                              
   Cost                              
   At 28 February 2014                              272              -            272 
   Additions                                        136              -            136 
   Acquisition of Mena                                -         59 668         59 668 
   Translation of foreign operations                  -          3 075          3 075 
   At 28 February 2015                              408         62 743         63 151 
   Additions                                        409              -            409 
   Translation of foreign operations                  -         22 272         22 272 
   At 29 February 2016                              817         85 015         85 832 
                                        
   Accumulated depreciation and impairment                              
   At 28 February 2014                              (96)             -            (96)
   Amortisation                                    (106)        (1 853)        (1 959)
   At 28 February 2015                             (202)        (1 853)        (2 055)
   Impairment (note 10)                               -        (19 659)       (19 659)
   Amortisation                                    (179)        (6 094)        (6 273)
   At 29 February 2016                             (381)       (27 606)       (27 987)
                                     
   At 28 February 2014                              176              -            176 
   At 28 February 2015                              206         60 890         61 096 
   At 29 February 2016                              436         57 409         57 845 

   The Group's other intangible assets arose from the acquisition of Mena in the prior year. 
   Mena owns the Lagia Oil Field. The Petroleum Concession Agreement gives Mena the right to 
   drill for petroleum reserves. 

   Details pertaining to the impairment charge are provided in note 10.


8  STATED CAPITAL                                        
                                                                                            Number         Stated
                                                                                         of shares        capital
   Date                           Issued to                         Nature of issue          000's          R'000
   Balance at 1 March 2014                                                               3 086 169      1 109 977 
   22 October 2014                Mena Hydrocarbons Incorporated    Specific issue         183 667        106 527 
   Balance at 28 February 2015                                                           3 269 836      1 216 504 
   Balance at 29 February 2016                                                           3 269 836      1 216 504 


9  REORGANISATION OF INTEREST IN BLOCK III
   2016
   Background
   Prior to the Reorganisation, Semliki had a direct 18.3% participating interest in Block III in 
   the DRC alongside partners Total E&P RDC (66.7%) ("Total") and the DRC Government (15%). 
   Semliki was 68% directly owned by RDK Mining Proprietary Limited ("RDK") with the remaining 
   32% held by Divine Inspiration Group Proprietary Limited ("DIG"). RDK is a wholly-owned 
   subsidiary of SacOil.

   Reorganisation
   During the year SacOil initiated a process to reorganise the holding of its indirect interest 
   in Block III ("the Interest"). The transaction agreements implementing the Reorganisation were 
   concluded on 29 February 2016. This resulted in the disposal of the Group's shareholding in 
   Semliki SARL ("Semliki") for $1 (R16) and the incorporation of SacOil DRC SARL ("SacOil DRC"), 
   in which RDK owns 100% of the issued shares. The effect of the Reorganisation is the transfer 
   of the Group's share of assets and liabilities (including the Interest), previously owned in 
   Semliki, to SacOil DRC, pursuant to various agreements with DIG. This Reorganisation now enables 
   SacOil to represent its interest in Block III directly and to have a direct line of sight of the 
   activities of the block. 

   The following table summarises the impact of the Reorganisation on the results of the Group 
   measured at the carrying amount of the assets and liabilities disposed or transferred.

                                                                                 2016
                                                                                R'000
   Disposal of Semliki:          
   Exploration and evaluation assets                                          (74 366)
   Contingent consideration                                                  (329 097)
   Loan due from DIG                                                          (57 729)
   Cash and cash equivalents                                                     (107)
   Non-controlling interest                                                   (29 397)
   Deferred tax liability                                                     131 639 
   Loans from Group companies                                                  84 268 
   Current tax payable                                                        272 206 
   Total identifiable net liabilities disposed at carrying amount              (2 583)
                    
   Plus: Transfer of assets and liabilities to SacOil DRC:           
   Exploration and evaluation assets                                           50 569 
   Contingent consideration                                                   196 315 
   Deferred tax liability                                                     (78 526)
   Loans from Group companies                                                 (84 268)
   Total identifiable net assets recognised                                    84 090 
                    
   Plus: Impact of the Reorganisation on SacOil's assets and liabilities (1):          
   Other financial assets                                                     (12 190)
   Current tax payable                                                         34 307 
   Net identifiable liabilities derecognised at carrying amount                22 117 
   Total impact of the Reorganisation                                         103 624 
   Total gain on Reorganisation of Interest                                  (103 624)
   Total consideration transferred (2)                                              - 

   (1)  DIG has indemnified the Group of tax obligations pertaining to the farm-out of a 
        portion of Block III to Total in March 2011 and March 2012 which has resulted in 
        the derecognition of current tax payable. Consequently, the asset previously recognised 
        to reflect the recovery of taxes payable by the Group from DIG, under this indemnity, 
        has simultaneously been derecognised. 

   (2)  Amount less than R1 000.

   The gain on Reorganisation of R103.6 million has been recognised in "other income" in 
   profit or loss.

                                                                                 2016
                                                                                R'000
   The cash outflow on Reorganisation is as follows:          
   Cash received                                                                    - 
   Net cash retained in Semliki                                                   107 
   Net cash outflow                                                               107



                                                                                 2016
                                                                                R'000
10 IMPAIRMENT OF NON-CURENT ASSETS
   Impairment losses:          
   Oil and gas properties (note 5)                                             56 849 
   Other intangible assets (note 7)                                            19 659 
                                                                               76 508 

   The Group's oil and gas properties and other intangible assets form part of a single 
   cash-generating unit ("CGU"). This CGU falls within the Egypt reportable segment (note 3). 
   The trigger for impairment testing for the current year was the decline in oil prices, which 
   significantly affected the revenue of the Group. This decline occurred subsequent to the 
   acquisition of Mena in October 2014. 

   In assessing whether an impairment is required the carrying value of the CGU is compared with 
   its recoverable amount. The recoverable amount is the higher of the CGU's fair value less costs 
   to sell and value in use. Given the nature of the Group's activities, information on the fair 
   value of an asset is usually difficult to obtain unless negotiations with potential purchasers 
   or similar transactions are taking place. Consequently, unless indicated otherwise, the 
   recoverable amount used in assessing the impairment charges described above is value in use. 
   The Group generally estimates value in use using a discounted cash flow model.

   Key assumptions relating to this valuation include the discount rate and cash flows used to 
   determine the value in use. Future cash flows are estimated based on financial budgets approved 
   by management covering a three-year period and are extrapolated over the useful life of the 
   assets to reflect the long-term plans for the Group using the estimated growth rate for the 
   specific business. The future cash flows were discounted to their present values using a pre-tax 
   discount rate of 10%. This discount rate is derived from the Group's post-tax weighted average 
   cost of capital ("WACC"), with appropriate adjustments made to reflect the risks specific to the 
   CGU and to determine the pre-tax rate. The WACC takes into account targeted debt and equity, 
   weighted 50% each. The cost of equity is derived from the expected return on investment by the 
   Group's investors. The cost of debt is based on the interest rate at which the Group would be 
   able to borrow for future expenditure. Segment-specific risk is incorporated by applying 
   individual beta factors. The beta factors are evaluated annually based on publicly available 
   market data.

   Other key assumptions used:
   Crude oil prices: Forecast commodity prices are based on management's estimates and available 
   market data.
   Production rates: Based on management's best estimate of production profiles.
   Growth rate estimates: Rates are based on published industry research.
   Gross margins: Gross margins are based on average values achieved in since the acquisition 
   of the assets. 

   Management has considered the sensitivity of the value-in-use calculation to various key 
   assumptions such as crude oil prices and production rates. These sensitivities have been taken 
   into consideration in determining the required impairments. A 10% change in any of these 
   variables could change the recoverable amount by R22.1 million to R113.8 million.


                                                 Carrying value                  Fair value
                                               2016          2015            2016           2015
                                              R'000          R'000          R'000          R'000
11 FAIR VALUE MEASUREMENT
   Group                                        
   Loans and receivables                                        
   Other financial assets (note 6)(1)       636 944        677 394        540 851        590 453
                                                  

   (1)  In terms of SacOil's accounting policies and IAS 39 - Financial Instruments: Recognition 
        and Measurement ("IAS 39") these financial instruments are carried at amortised cost and not 
        at fair value, given that SacOil intends to collect the cash flows from these instruments when 
        they fall due over the life of the instrument. Changes in market discount rates which affect 
        fair value would therefore not impact the valuation of these financial instruments and are not 
        considered to be objective evidence of impairment for items carried at amortised cost per 
        IAS 39 as this does not impact the timing or amount of expected future cash flows.


   Assets                  Fair value at 
                        29 February 2016                    
                                   R'000     Valuation technique                   Significant inputs                    
   Other financial assets         540 851    Discounted cash flow model            Weighted average cost of capital
                                      

   The Group's own non-performance risk as at 29 February 2016 was assessed to be insignificant.

   Fair value hierarchy:
   The following table presents the Group's assets not measured at fair value in the statement 
   of financial position, but for which the fair value is disclosed above. The different levels 
   have been defined as follows:

   Level 1 - Quoted (unadjusted) prices in active markets for identical assets or liabilities
   Level 2 - Other techniques for which all inputs which have a significant effect on the recorded 
             fair value are observable, either directly or indirectly
   Level 3 - Techniques which use inputs that have a significant effect on the recorded fair value 
             that are not based on observable market data

                                 Level 1        Level 2        Level 3          Total
                                   R'000          R'000          R'000          R'000
   At 29 February 2016                                        
   Other financial assets              -              -        540 851        540 851 
                                        
   At 28 February 2015                                        
   Other financial assets              -              -        590 453        590 453 
   Asset held for sale                 -              -         21 840         21 840 

   There were no transfers between any levels during the year.


12 COMMITMENTS AND CONTINGENT LIABILITIES                    
                                                                  2016           2015
                                                                 R'000          R'000
   Commitments       
   Exploration and evaluation assets 
     Work programme commitments - due within 12 months             830         68 661 
     Work programme commitments - due within 13 to 48 months    51 282         19 500 
                                                                52 112         88 161 
                              
   Exploration and evaluation commitments will be funded 
     through a combination of debt and equity funding.                    
                              
   Contingent liabilities                     
   Performance bond on OPL 233 issued by Ecobank in respect 
     of OPL 233's exploration activities (1)                         -        173 666 
   Cost carry arrangement with Total (2)                        95 773         96 613 
   Total                                                        95 773        270 279 
                              

   (1)  Performance bond
        The performance bond issued by Ecobank in respect of the OPL 233 exploration activities 
        expired on 2 May 2015.

   (2)  Cost carry arrangement
        The Farm-In Agreement between Semliki and Total provides for a carry of costs by Total 
        on behalf of Semliki on Block III. Semliki's rights under this contract were subsequently 
        assigned to SacOil DRC as part of the Reorganisation concluded on 29 February 2016 
        (see note 9). Total will be entitled to recover these costs, being SacOil DRC's share of 
        the production costs on Block III, plus interest, from future oil revenues. The contingency 
        becomes probable when production of oil commences and will be raised in full at that point. 
        At 29 February 2016 Total has incurred R95.8 million (28 February 2015: R96.6 million) of 
        costs on behalf of SacOil DRC. Should this liability be recognised a corresponding increase 
        in assets will be recognised, which, together with existing exploration and evaluation 
        assets, will be recognised as development infrastructure assets.


                                                                  2016           2015
                                                                 R'000          R'000
13 RELATED PARTIES     
   Key management compensation                    
   Non-executive directors:                    
   Fees                                                          3 242          2 796
                              
   Executive directors:                    
   Salaries                                                     10 610         13 665
                              
   Other key management:                    
   Salaries                                                      7 436          4 642 


14 DIVIDENDS
   The Board has resolved not to declare any dividends to shareholders for the period under review.


15 EVENTS AFTER THE REPORTING PERIOD
   The following events occurred after the reporting period:

   During April 2016, SacOil and Energy Equity Resources ("EER") signed a Memorandum of Understanding 
   to explore oil and gas opportunities in the Republic of Nigeria. Pursuant to this initiative, 
   SacOil and EER were awarded a 12-month contract for the purchase of crude oil grades by the 
   Nigerian National Petroleum Corporation for onward sale. The first lifting of the crude oil is 
   expected to take place in the middle of June 2016.

   The receivable from Encha Energy ("Encha"), disclosed in note 6, became due and payable on 
   29 February 2016. This amount remains unpaid as at the date of this report. Under the terms of 
   the Acknowledgement of Debt Agreement concluded with Encha, interest calculated at the prime 
   rate plus 3% shall accrue on the outstanding balance. Notwithstanding the date on which the 
   outstanding balance became due and payable, such interest will be calculated from 
   28 February 2013 to the date of actual payment. The Group is in discussions to recover these funds.

On behalf of the Board


Tito Mboweni            Dr Thabo Kgogo                  Damain Matroos
Chairman                Chief Executive Officer         Chief Financial Officer


Johannesburg
31 May 2016


CORPORATE INFORMATION
Registered office and physical address: 1st Floor, 12 Culross Road, Bryanston, 2021
Postal address: PostNet Suite 211, Private Bag X75, Bryanston, 2021
Contact details: Tel: +27 (0) 10 591 2260; Fax: +27 (0) 10 591 2268
E mail: info@sacoilholdings.com
Website: www.sacoilholdings.com

Directors: Dr Thabo Kgogo (Chief Executive Officer), Marius Damain Matroos (Chief Financial Officer), 
Bradley Cerff (Executive Director), Tito Mboweni (Chairman)*, Mzuvukile Maqetuka*, Stephanus Muller*, 
Vusi Pikoli*, Ignatius Sehoole**, Danladi Verheijen**, Titilola Akinleye**
* Independent non-executive directors    ** Non-executive directors 

Advisers:
Company Secretary: Fusion Corporate Secretarial Services (Proprietary) Limited
Transfer Secretaries South Africa: Link Market Services South Africa (Proprietary) Limited
Transfer Secretaries United Kingdom: Computershare Investor Services (Jersey) Limited
Corporate Legal Advisers: Norton Rose Fullbright South Africa
Auditors: Ernst & Young Inc
JSE Sponsor: PSG Capital Proprietary Limited
Investor Relations (UK): Buchanan Communications Limited
Investor Relations (SA): Hill+Knowlton Strategies South Africa Proprietary Limited
AIM Nominated Adviser: finnCap Limited

  

Date: 31/05/2016 04:15:00 Supplied by www.sharenet.co.za                     
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