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SCL - Sacoil Holdings Limited - Half Yearly 2011 Financial Results
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 "the Group")
Half Yearly 2011 Financial Results
AIM and JSE listed - SacOil Holdings Limited, the African independent upstream
oil and gas company, is pleased to announce its half yearly financial results
for the six months ended 31 August 2011.
HIGHLIGHTS
Operational / Management / Corporate
- Successful farmout of a 60% interest in Block III to Total E&P RDC ("Total")
("Block III Disposal") for:
* US$7.5m (GBP4.6m) cash payment received net to SacOil
* US$54m (GBP33.02m) contingent bonus paymentnet to SacOil
* Full carry on exploration costs of at least US$35m (GBP21.4m) to final
investment decision
-Strengthened main board, with the appointments of John Bentley and James
William (Bill) Guest as Independent Non-Executive Directors
- Strengthened management team with the appointment of Bradley Cerff as
Vice-President
- Successful admission to AIM
Financial
- US$7.5m (GBP4.6m) cash received and further potential proceeds of US$54m
(GBP33.02m) in relation to the Block III Disposal (net to SacOil)
- US$10.6m cash (GBP6.5m) raised through equity
Headline earnings up 657%
- Tangible Net Asset Value up 379%
- Greenhills plant net profit up 11%
Commenting, Robin Vela, CEO, said:
"The focus over the last six months has been on managing the Company`s exposure
to the high impact exploration assets in Block III in the highly prospective
Albertine Basin, whilst retaining significant potential upside for shareholders.
Our attention has also been on procuring funding in order to de-risk and fast
track the work program obligations of our asset portfolio and progressing
towards early production and revenues from our oil concession blocks, OPL 233
and OPL 281, in Nigeria. We successfully did this through the farm-out to Total
and the recently announced Standby Equity Distribution Agreement. Combined, this
puts us in a good position to fast track and develop our asset position and
opportunities and we look forward to the next six months of the financial year
with added confidence."
Interim Statement
Operations
During the period, SacOil, through Semliki Energy SPRL ("Semliki"), a company
incorporated in the DRC and in which it holds a 50% interest, successfully
concluded the farm-out and transfer of a 60% legal and beneficial participating
interest and operatorship of Block III to Total. DIG Oil Proprietary Limited
("DIG") holds the other 50% in Semliki. In return, SacOil gained:
- An immediate gross cash realisation of US$7.5m (GBP4.6m);
- Future contingent cash bonuses of, in aggregate, US$54.0m (GBP33.2m) and
payable in two tranches;
- Full carry on exploration expenditure costs of at least US$35m (GBP21.4m)
until final investment decision;
- Settlement of a US$1.4m (GBP0.9m) loan provided to DIG;and
- Knowledge and technical skills transfer via SacOil`s representation on the
management committee of Block III.
Under the terms of the farm-out, Total has committed to use all reasonable
endeavors to meet the Block III Work Programme obligations and to reach final
investment decision within three years from 31 March 2011, the date on which the
Block III Disposal was completed.
In line with the Company`s strategy of managing high impact exploration risk but
retaining meaningful upside, the farm-out to Total greatly de-risks the
Company`s remaining 12.5% effective interest in the Block, both financially
through the carry on costs and operationally through the additional
understanding and knowledge that Total brings as operator and a partner.
On 31 March 2011, SacOil received 50% of the initial consideration amounting to
US$7.5m (GBP4.6m) as a distribution from Semliki. Semliki also
recognisedincomeof R238.1m (GBP20.6m) in relation to the Block III Disposal.
On 31 March 2011, DIG settled a loan from SacOil amounting to US$1.4m (GBP0.9m)
out of its 50% share of the initial consideration. The loan advanced to DIG by
SacOil was in terms of a loan agreement and related to signature bonuses paid by
SacOil, on behalf of DIG, directly to the DRC Government on Block III.
Corporate
On 8 April 2011 SacOil was successfully admitted to the AIM market of the London
Stock Exchange ("LSE"). Although the Company`s primary listing remains on the
Johannesburg Securities Exchange ("JSE"), its admission to AIM enables it to
gain exposure to the European markets which have a well-developed understanding
of the exploration and production industry.
SacOil believes that it has a compelling proposition to aggressively acquire new
acreage on the African continent. Being a purely African based company and with
extensive experience in the region, it is ideally positioned to take advantage
of the opportunities that arise, as well as to fast track, develop and de-risk
these assets through to early production, thereby establishing the Company as a
balanced portfolio independent African upstream company.
Board and Management
In line with the Company`s aim to strengthen its board and management team and
to build on its current senior oil and gas experience, during the period John
Bentley and James William (Bill) Guest were appointed as independent non-
executive directors.
John has over 40 years` experience in the natural resources sector. He has held
senior positions in manylisted and private oil & gas and mining companies as
well as being instrumental in the listing of companies
in both Johannesburg and London. He is currently Chairman of Faroe Petroleum
plc, Chairman ofScotgold Resources Ltd, Deputy Chairman of Wentworth Resources
Ltd and a Non-Executive Director ofResaca Exploitation Inc and Kea Petroleum
plc.
With over 35 years` of international exploration and production experience
within the oil industry, Bill brings invaluable technical, business development
and senior management experience to the Company. Having spent over 14 years on
the main boards of London listed Oil and Gas Exploration and Production
companies, he also brings a significant amount of senior public company
experience to SacOil.
In May 2011, the Company also appointed Bradley Cerff as its Vice President.
Bradley joins from PetroSA where he held the position of Regional Manager for
East and West Africa. Bradley has over 15 years` experience in the oil and gas
Industry with Masters Degree in Science and Business Administration focused on
foreign direct investment in the African oil and gas industries. He is also a
member of the Society of Petroleum Engineers.
As from 14 November 2011, Colin Bird will return to being a Non-Executive
Director of the Company. Colin was appointed as Executive Director of SacOil in
October 2010 mainly to assist the Company in its application for an admission to
AIM.
Financial
In order to ensure that the Group is sufficiently funded to fast track its
current projects and be able to pursue new opportunities, the Company has
secured the following:
- a Standby Equity Distribution Agreement ("SEDA") of US$25m (GBP16m)
("Commitment Amount") with Yorkville Advisers UK LLP ("YA"). This facility is
available to the Company for a period of three years. Under the SEDA, any issue
of shares in the capital of the Company to YA constitutes a specific issue of
shares for cash in terms of JSE Listings Requirements, and accordingly requires
approval by Shareholders; and
- an irrevocable undertaking to subscribe for 111940 298 new SacOil shares at an
issue price of 67 cents per share from Timtex Investments Proprietary Limited
("Timtex"). The proceeds of R75 million (GBP6.5m) have been received by SacOil
and are being utilised to further advance the Group`s various oil and gas
projects and also pursue new opportunities that might arise.
Both the SEDA and the issue to Timtex are subject to shareholder approval at a
general meeting of Shareholders to be held on Thursday, 17 November 2011.
Outlook
SacOil has made solid progress on a number of fronts over the last six months.
With the farm-out to Total in place and the funds gained though the placing and
the SEDA, the Company is well positioned to be able to progress its plans in
Nigeria as well as look at additional options to grow its asset portfolio.
The focus of most oil & gas companies in Africa is on high impact but sizable
exploration assets. That leaves numerous already discovered and as such
relatively de-risked smaller plays for SacOil to take advantage of. For a
company of SacOil`s size, these opportunities are not only highly commercial but
also provide the potential for fast track production and revenue, which in turn
creates the foundation for future step growth.
For further information please contact:
AIM Nominated Adviser and Joint Broker
finnCap Ltd
Matthew Robinson / Christopher Raggett +44 (0)20 7220 0500
Joint Broker (United Kingdom)
Shore Capital Stockbrokers Ltd
Jerry Keen / Bidhi Bhoma +44 (0)20 7408 4090
Public Relations (South Africa)
The Riverbed Agency (South Africa)
Raphala Mogase / Bongiwe Moeli +27 (0) 11 783 7903
Public Relations (United Kingdom)
Pelham Bell Pottinger (United Kingdom)
Philip Dennis/Nick Lambert/Rollo Critchton-Stuart +44 (0)20 7861 3232
Notes
Further details on the above are provided in the Interim Consolidated Financial
Statements for the six months ended 31 August 2011 which are shown below and are
also available on the Company`s website:
www.sacoilholdings.com
SACOIL HOLDINGS LIMITED
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST2011
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Notes Unaudited Unaudited Audited
Six months Six months Twelve months
Aug-11 Aug-10 Feb-11
R`000 R`000 R`000
Revenue 19 274 16 474 35 143
Cost of sales (13 572) (11 456) (23 615)
Gross profit 5 702 5 017 11 528
Operating costs (4 254) (3 714) (7 327)
Results from operating
activities 2 1 448 1 303 4 201
Corporate costs 3 (30 192) - (24 680)
General and
Administration costs (6 926) (4 244) (4 021)
(37 117) (4 244) (28 702)
Finance income 6123 179 1 271
Finance costs (2 032) (10) (17)
Net finance (cost)/income 4 091 169 1 254
Equity settled expenses 4 (50 885) (4 179) (4 179)
Fair value adjustments 3 097 - (2 229)
Net surplus on disposal
of intangible assets 5 98 516 - -
Loss from operations 50 728 (4 179) (6 408)
Loss for the period
before tax 19 149 (6 951) (29 655)
Income tax - - (95)
Profit/(Loss) for the
period 19 149 (6 951) (29 750)
Other comprehensive income
Gains and losses on
property revaluation - - (340)
Income tax on other
comprehensive income - - 95
Other comprehensive
income for the period
net of income tax - - (245)
Total comprehensive
income/(loss) for the period 19 149 (6 951) (29 995)
Total comprehensive
income/(loss)
attributable to:
Owners of the parent (31 097) (6 951) (29 995)
Non-controlling interest 50 246 - -
19 149 (6 951) (29 995)
Reconciliation of
headline earnings
Loss for the period (31 097) (6 951) (29 750)
Loss on sale of
intangible asset
attributable to owners
of the parent 5 69 810 - -
Headline earnings/(loss) 38 713 (6 951) (29 750)
Weighted average number
of shares 680 555 314 800 449 629
Loss per share (cents) 1 (4.57) (2.21) (6.67)
Diluted loss per share (cents) (4.49) (2.20) (6.16)
Headline earnings/(loss)
per share (cents) 1 5.69 (2.21) (6.62)
Diluted headline
earnings/(loss) per
share (cents) 5.59 (2.20) (6.16)
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Unaudited Unaudited Audited
Six months Six months Twelve months
Aug-11 Aug-10 Feb-11
R`000 R`000 R`000
ASSETS
Property, plant and equipment 6 282 7 135 6 644
Intangible assets 6 153 056 - 394 642
Deferred tax asset 799 895 799
Other financial assets 7 362 103 - 45 087
Non-current assets 522 240 8 030 447 172
Loans receivable 52 927 27 867 11 413
Inventories 2 401 2 578 2 408
Trade and sundry accounts
receivable 8 829 5 576 6 317
Cash and cash equivalents 11 786 4 616 17 900
Current assets 75 943 40 636 38 038
Total assets 598 183 48 667 485 210
EQUITY AND LIABILITIES
Equity attributable to
equity holders
Stated capital 8 468 380 86229 374 029
Reserves 38 880 30234 29 989
Accumulated loss (127 296) (73399) (96 200)
379 963 43065 307 818
Non-controlling interest 212 006 - 161 179
Total equity 591 969 43 065 468 997
Provision for environmental
rehabilitation 1 006 886 946
Non-current liabilities 1 006 886 946
Trade and other payables 4 409 3 822 6 209
Deferred tax liability 799 895 799
Loans payable - - 8 259
Current liabilities 5 208 4 717 15 267
Total equity and liabilities 598 183 48 667 485 210
Number of shares in issue (`000) 683 929 321 635 674 090
Net asset value per share (cents) 86.55 13.39 69.57
Net tangible asset value per
share (cents) 64.18 13.39 11.03
STATEMENTS OF CHANGES IN EQUITY
Stated capital Revaluation Accumulated Total equity
R`000 reserve loss
Balance at 28
February 2011 374 029 29 989 (96 200) 307 818
Ordinary shares issued 94 351 - - 94 351
Loss for the period - (31 097) (31 097)
Share based payment
expense - 8 890 - 8 890
Balance at 31
August 2010 468 380 38 879 (127 297) 379 962
CASH FLOW STATEMENTS Unaudited Unaudited Audited
Six months Six months Twelve months
Aug-11 Aug-10 Feb-11
R`000 R`000 R`000
Cash utilised in
operating activities (25 724) (2 472) (23 049)
Net investment (cost)/income 4 088 169 1 254
Net cash flows from
operating activities (21 636) (2 303) (21 796)
Cash flows from investing
activities
Purchase of property, plant
and equipment (136) - -
Sale/(acquisition) of
intangible assets 101 967 - (54 475)
Net cash flows from investing
activities 101 831 - (54 475)
(Decrease) in loans receivable (119 223) - (45 477)
Equity settled expenses (41 994) - -
Finance lease payments (91) (79) (154)
Proceeds on share issues 75 000 - 132 804
Cash flows from financing
activities (86 307) (79) 87 172
Net movement in cash and cash
equivalents (6 113) (2 382) 10 902
Cash and cash equivalents at the
beginning of the year 17 900 6 998 6 998
Cash and cash equivalents at the
end of the year 11 786 4 616 17 900
Notes to the Interim Financial Statements for the six months ended 31 August
2011
Basis of preparation
The interim financial statements of the Group for the six months ended 31 August
2011 have been prepared in accordance with the Group`s accounting policies,
which comply with International Financial Reporting Standards as well as the AC
500 standards as issued by the Accounting Practices Board or its successor and
are consistent with those of the previous year. This interim report has been
prepared in accordance with and containing the information required by
International Accounting Standard 34 - Interim Financial Reporting. The interim
report has been prepared on a going concern basis.
The interim financial statements have not been audited or reviewed by the
Group`s auditors and is the responsibility of the directors of the Company.
These interim financial statements have been prepared under the supervision of
the Company`s Finance Director, Carina de Beer.
All monetary information and figures presented in these interim financial
statements are stated in thousands of Rand (R`000), unless otherwise indicated
and are presented in the functional currency of the Company being South African
Rand.
Notes
1. The Group reported a net asset value of 86.55 (2010: 13.39) cents per
ordinary share ("share"), a net tangible asset value of 64.18 (2010:13.39) cents
per share, a loss of 4.57 (2010: 2.21) cents per share and headline earnings of
5.69 (2010: 2.21) cents per share.
2. The Company`s chemical processing plant in Mpumalanga, better known as
Greenhills, increased sales by 17% and gross profits by 11%. Sales and
production levels were maintained although increased maintenance costs have
negatively impacted on profits.
3. Corporate costs mainly include costs paid ("AIM Costs") in relation to the
Company`s successful admission to the Alternative Investment Market ("AIM") of
the London Stock Exchange ("LSE") on 8 April 2011.
4. Included in equity settled expenses are 12 021 122 call options ("Call
Options") issued to Renaissance BJM Securities Proprietary Limited (South
Africa) ("Rencap") in relation to funding provided to enable SacOil to fulfil
its obligations in relation to, inter alia, signature bonuses and farm in fees
payable to the Nigerian Government on oil concessions OPL 281 and OPL 233. The
average strike price of these call options is R1.46 and the call options expires
at 28 February 2012.
Also included in equity settled expenses is a cash settlement of an equity
conversion in relation to a facility of US$30.9 million ("Facility") provided to
SacOil by Rencap ("Equity Conversion").
The management of SacOil elected a cash settlement of the equity conversion to
avoid dilution of existing shareholders` interests in SacOil.
The AIM Costs, the Call Options and the Equity Conversion of the Facility were
approved by SacOil shareholders ("Shareholders") at a general meeting of
Shareholders held on 31 March 2011.
5. The net surplus on disposal of intangible assets consists of two components.
Firstly, a loss on disposal of intangible assets in an amount of R139.6m
(US$20.4m), which represents the disposal by Semliki SPRL ("Semliki"); a 50%
owned subsidiary of SacOil incorporated in the Democratic Republic of the Congo,
of a 60% interest in the Block III oil concession rights ("Block III Disposal")
to Total E&P RDC ("Total") calculated taking into account an initial
consideration received in an amount of R102m (US$7.5m). The Block III Disposal
was completed on 31 March 2011 ("Completion Date") and the initial consideration
was duly received by Semliki.
Secondly, included the net surplus on disposal of intangible assets, is an
adjustment of R238.1m (US$33.7m) in relation to the Block III Disposal. In
recognising the income, the management of SacOil considered new and updated
information on Block III which justified an adjustment of the value of the first
contingent bonuspayable by Total to Semliki in terms of the Block III Disposal.
The amount of R238.1m (US$33.7m) was recognised in other financial assets on the
statement of financial position as at 31 August 2011.
6. Business Combinations
6.1 Fair value of assets acquired and liabilities assumed in a business
combination on 20 September 2011
Intangible assets 340 167 267
Other financial liabilities (16 740 875)
Trade and other payables (1 067 963)
Total identifiable net assets 322 358 429
Non-controlling interest (161 760 089)
160 598 340
6.2 Non-controlling interest
Non-controlling interest is measured at the non-controlling interest`s
proportionate share of the acquiree`s identifiable net assets.
6.3 Equity issued as part of consideration paid
On 22 July 2010 SacOil entered into a sale of shares agreement in terms of which
SacOil acquired from the SacOil Proprietary Limited ("SPL") Vendors 50% of the
entire issued share capital of, and all claims of the SPL Vendors against, SPL
on the date that all the conditions precedent have been met, for a consideration
of R439.9m (US$57,7m), to be settled through the issue of 209 456 000 new SacOil
shares at an issue price of 210 cents per ordinary share. The fair value of the
shares issued to the vendors is 74 cents per ordinary share being the market
price of SacOil ordinary shares the day before the announcement of the
transaction, being 23 July 2010.
Under DRC law hydrocarbon rights must be held by an entity incorporated in the
DRC. The Block III Production Sharing Agreement required the Block III
Contractant to constitute a DRC public limited liability company within six
months of the date of the Block III Production Sharing Agreement ("PSA") coming
into force and effect. On 19 November 2010 the Company and DIG incorporated
Semliki, a private company incorporated in the DRC. The Company and DIG each
hold 50 per cent of the issued share capital of Semliki. The statutes of Semliki
provide that the Company and DIG shall transfer to the DRC or a public entity
nominated by the DRC 15 per cent of the issued share capital of Semliki. Semliki
will launch an application to be converted into a public limited liability
company in due course.
The DRC Government has furnished its consent for the initial incorporation of
Semliki as a private limited liability company (as distinct from a public
limited liability company) and for the current shareholding arrangement. To date
the DRC Government has not made an election as to whether it intends to hold its
interest in Semliki directly or through Cohydro or an alternative public entity.
If the DRC Government elects not to hold its participating interest through
Cohydro then it may be necessary to amend the provisions of the Block III
Production Sharing Agreement.
The rights and obligations of the Block III Contractant under the Block III PSA
were transferred to Semliki by operation of DRC law with effect from 19 November
2010.
6.4 Revenue and results of Semliki
Included in the Group`s results is a profit reported by Semliki in an amount of
R100, 5m of which 50% is attributable to non-controlling shareholders. Neither
SPL nor Semliki reported any profits or losses since the acquisition date to 28
February 2011.
6.5 Acquisition related costs
These costs have been expensed in the year of acquisition and are included in
comprehensive income.
For full details on the Company`s investment in Block III please refer to:
http://www.sacoilholding.com/im/fi les/listing/
7. Included in other financial assets is an amount of R52.9 million owed to
SacOil by Energy Equity Resources Limited ("EER") in relation to capital costs
paid by SacOil on behalf of EER with respect to oil concession blocks OPL 281
and OPL 233 in Nigeria. In terms of an agreement entered into between EER and
SacOil ("Loan Agreement"), all acquisition costs paid by SacOil on behalf of EER
bears interest at 25% calculated from the date of incurring such costs to the
date of recovery. The loan is repayable in three equal annual instalments, the
first such instalment becoming due 60 business days after first oil production
by taking that proportion of EER`s entitlement to petroleum that equals one
third of the outstanding capital plus interest accrued. The second and third
instalments will become payable on the same principle from EER`s subsequent
entitlement to petroleum. The loan is secured by a cession and pledge over EER`s
equity interests in both OPL 281 and OPL 233 in favour of SacOil.
8. Shareholders are referred to the announcement released on the Securities
Exchange News Service ("SENS") of the JSE Limited ("JSE") and on the Regulatory
News Service ("RNS") of the LSE on Friday, 2 September 2011, regarding the
specific issue of ordinary shares to Timtex Investments (Proprietary) Limited
("Timtex"), an associate of Encha Group Limited ("Encha") ("the Specific
Issue").
On Tuesday, 30 August 2011,Timtex signed an irrevocable undertaking to subscribe
for 111 940 298 new SacOil shares at an issue price of 67 cents per share, being
the closing price of SacOil ordinary shares on 29 August 2011, the day before
Timtex signed the irrevocable undertaking. The issue price is at a premium of
8.06% to the 30-day volume weighted average price of SacOil on 29 August 2011.
Timtex currently holds 4.96% in the issued capital of SacOil and is an associate
company of Encha holding 35.88% in the issued capital of SacOil.
The proceeds of R75m from the Specific Issue have been received by SacOil and is
utilised to fast-track the Group`s various oil and gas projects and also pursue
new opportunities that might arise.
9. Dividends
The Board has resolved not to declare any dividends to Shareholders for the
period under review.
10. Segmental information
The Group`s business model has not advanced to a stage where accurate and
meaningful segmental information can be presented. Currently, the only operation
generating revenue is the Greenhills plant, which is a non-core asset. Sales
volumes for the six months to August 2011 are as follows:
Group and Company % Group and Company %
Six months ended Six months ended 31
31 August 2011 August 2010
Export sales 1 240 48 960 40
Local sales 1 337 52 1 463 60
Total 2 577 100 2 423 100
By order of the board
Melinda Gous
Fusion Corporate Secretarial Services Proprietary Limited
Company secretary
Johannesburg
14 November 2011
JSE Sponsor
The Standard Bank of South Africa Limited
AIM Nominated Adviser and Joint Broker
finnCap Ltd
CORPORATE INFORMATION
Registered office and physical address:
2nd Floor, The Gabba
Dimension Data Campus
57 Sloane Street
Bryanston
2021
Postal address:
PostNet Suite 211
Private Bag X75
Bryanston
2021
Contact details:
Tel: +27 (0) 11 575 7232
Fax: +27 (0) 11 576 2258
Email: info@sacoilholdings.com
Website: www.sacoilholdings.com
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
Bowman Gilfillan
Auditors
BDO South Africa Inc.
Notes to oil and gas disclosure
In accordance with AIM Guidelines, Bradley Cerff, is the qualified person that
has reviewed the technical information contained in this news release. Bradley
has over 15 years` experience in the oil and gas Industry with Masters Degrees
in Science and Business Administration focused on Foreign Direct Investment in
the African oil and gas industries. He is also a member of the Society of
Petroleum Engineers.
About SacOil
SacOil is a South African based JSE and AIM listed African independent upstream
oil and gas company focused exclusively on operations in Africa, where it has a
competitive advantage at the point of entry. In the assets that SacOil owns, it
is committed to developing the assets to a level that adds value to the
shareholders.To date it has operations in the DRC (and since partnered with
Total), Nigeria and South Africa and the directors continue to evaluate a number
of opportunities to secure new value accretive acreage in other established and
prolific African hydrocarbon basins.
Democratic Republic of Congo Assets
The Democratic Republic of Congo has vast tracts of untapped raw mineral ores
and some of the richest mineral deposits in the world.
- Block III, DRC
In Block III through the joint Venture with Total, it is envisaged that the work
program committed to will demonstrate prospectively and eventually lead to oil
production.
Block III is situated in the Albertine Graben, DRC and comprises an area of
3,177 km2, which is mostly lowland (Semliki river plain) and is flanked by rift
margins. Block III is on trend with Lake Albert discoveries in Uganda. The
largest discovery in the Escarpment/Near-shore Play is Kingfisher (200MMbbl) and
the largest discovery in the Victoria Nile Delta Play is Giraffe-Buffalo
(300MMbbl). Over 800 million barrels of recoverable oil have been discovered in
the Albertine Graben, and the total resource base is estimated at two billion
barrels. To date, the majority of the exploration has been within the borders of
Uganda, but the DRC concessions are considered to be highly prospective, with
Block III being close to recent significant discoveries.
Nigerian Assets
Nigeria has become Africa`s biggest producer of crude oil and it is believed
that the Niger Delta holds some of the world`s richest oil deposits.
- OPL 233, Nigeria
OPL 233 is a 126 km2 shallow water block with a water depth of less than 30 ft
and is located immediately off the coast of the central delta region of Nigeria,
some 120 km due south-southeast from the Forcados terminal. The block is
adjacent to giant Apoi field (>600MMbo) and is flanked by a number of oil and
gas fields and discoveries. The AGR-TRACS (an oil and gas industry recognised
independent expert) petrophysical interpretation of the Olobia-I well-logs
indicates 103 ft of net oil and 54 ft of gas and condensate across five
reservoir pay zones. The block is sparsely covered by 2D seismic data with
upside in Block 233 potentially significant.
On OPL 233, SacOil with its partners are committed to acquiring 3D seismic data
which appraise the existing discovery and is envisaged to give a better
understanding of the prospectivity of the remaining block. The data will also be
used to update the existing CPR.
- OPL 281 Nigeria
OPL 281 is an onshore block covering some 138 kmSquared, and is located in the
western delta region of Nigeria approximately 25 km due east from the Forcados
terminal. Two discovery wells have been drilled to date on the block, namely
Obote-I in 1970 which encountered hydrocarbons at four levels between 8,720 ft
and 12,350 ft, while Ekoro-I drilled in 1967 discovered eight hydrocarbon sands
between 8,260 ft and 10,761 ft. The block has discovered but undeveloped
hydrocarbon resources with a contingent resource for the block estimated at 100
mmboe (P50 as reported by TRACS, an oil and gas industry recognised independent
expert.
In relation to OPL 281, SacOil with its Joint Venture partners are in the
process of evaluating and appraising the oil discoveries on block through the
reprocessing of seismic data and the drilling of an appraisal well.
Date: 14/11/2011 09:00:01 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department.
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