EFORA ENERGY LIMITED - Trading Statement for the Year Ended 28 February 2018

Trading Statement for the Year Ended 28 February 2018

EFORA ENERGY LIMITED
(Formerly SacOil Holdings Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
JSE Share Code: EEL
ISIN: ZAE000248258
(“Efora” or “the Company”)

TRADING STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2018

This statement is issued in compliance with paragraph 3.4(b) of the
Listings Requirements of the JSE Limited.

The financial results have been impacted by the following material
items during the year ended 28 February 2018:
   - AfricOil acquisition was completed on 31 May 2017 and 9 months
     results were included in the reporting period. As previously
     reported, AfricOil suspended its Zimbabwean operations for a
     period of time to refocus the business model in the country
     resulting of R13 million, however, the volumes have been
     gradually increased to ensure that the business model is fully
     embedded. The finance costs incurred by AfricOil was largely
     due to a loan to acquire the Forever Fuels business. AfricOil
     also incurred additional costs for the provision of doubtful
     debt and write downs, coupled with integration and
     restructuring related costs.
   - Reduced losses from Lagia operations of R16 million
     (2017:R34.2 million) for the reporting period that was
     impacted by the improved oil price, the free float of the
     Egyptian Pound and results from the efforts to improve cost
     control at the field;
   - Current impairment charges total R6.2 million (2017: R143.3
     million, includes Encha) primarily arising from the further
     impairment of the Transcorp receivable due to the postponement
     of the hearing of the matter in the Nigerian courts; and
   - Foreign exchange losses of R14.3 million (2017: R68.0 million)
     due to the weakening of the Rand in the reporting period.

Shareholders are advised that the Group’s results contain a prior
year adjustment and that comparative balances accordingly differ to
those previously reported.

The prior year adjustment relates to a change in the accounting
treatment of contingent liabilities relating to Block III in the
DRC:
- During the prior periods, the Group’s cost carry arrangement with
   Total E&P RDC ("Total") required Total to incur all exploration
   and appraisal costs on behalf of the Group with respect to its
   operations on Block III in the DRC. Under the terms of this
   arrangement, Total is entitled to recover these costs plus
   interest from the Group's share of oil revenues if Block III goes
   into commercial production. In the prior years, the Group
   accounted for the liability that could arise from the cost carry
   arrangement with Total as a contingent liability.
-  During the current financial year, Group’s new auditors believe
   that their interpretation of the relevant reporting standard is
   different and that the above accounting treatment was incorrect.
   It is their view that it is more probable than previously
   assessed that this liability should be accounted for as a
   provision and not a contingent liability. As a result the Group's
   investment in Block III under exploration and evaluation assets
   was understated with a corresponding understatement of
   liabilities. The error has been corrected by restating each of
   the affected financial statement line items for the prior
   periods.

Accordingly, the results for the comparative period ending 28
February 2017 have been restated as follows:

                                         Previously          Restated
                                           reported
    Basic loss per share                       6.48              6.28
    Headline loss per share                    6.48              6.28

The numbers set out below for the prior year reflect the reported
measures adjusted for the impact of the share consolidation
completed on 8 November 2017 (“Consolidation”).

As a result of the above, shareholders are advised that the basic
and headline loss per share are expected to be between 36.06 cents
and 48.62 cents, representing a decrease on the restated basic and
headline loss per share of between 23% and 43% from the restated
basic and headline loss per share of 62.80 cents (after the
Consolidation) recorded for the year ended 28 February 2017.

The results for the year ended 28 February 2018 will be released on
SENS on Thursday, 31 May 2018.

The financial information on which this trading statement is based
has not been reviewed, audited or reported on by the Company's
external auditors.

JSE Sponsor
PSG Capital

31 May 2018

For further information please contact:
Efora Energy Limited
Damain Matroos
+27 (0)10 591 2260
Buchanan (Financial PR adviser)
Ben Romney / Chris Judd
+44 (0)20 7466 5000

About Efora
Efora Energy Limited is a South African based independent African oil
and gas company, listed on the JSE. The Company has a diverse portfolio
of assets spanning production in Egypt; exploration and appraisal in
the Democratic Republic of Congo; midstream project relating to crude
trading in Nigeria and material downstream distribution operations
throughout Southern Africa. Our focus as a Group is on delivering
energy for the African continent by using Africa’s own resources to
meet the significant growth in demand expected over the next decade.

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