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SCL - Sacoil Holdings Limited - Corporate Update
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")
29 March 2012
Johannesburg
CORPORATE UPDATE
- Block III asset update
- Issue of shares for cash to YA Global Masters SPV Ltd
- Appointment of auditors and joint broker
1. Block III asset update
On 12 March 2012, Total E&P RDC ("Total") acquired a further 6.66% effective
interest in Block III from DIG Oil Proprietary Limited ("DIG"), a shareholder
in Semliki Energy SPRL ("Semliki"). Pursuant to the acquisition, Total`s
holding in Block III increased to 66.66%, whereas SacOil`s effective interest
remains unchanged at 12.5%, DIG`s holding reduces to 5.84% and the Democratic
Republic of Congo ("DRC") Government retains 15.0%. As a result of this
transaction, Semliki, a company incorporated in the DRC and through which
SacOil and DIG own their interests in Block III, is now owned 68% by SacOil
and 32% by DIG.
SacOil`s effective interest of 12.5%, its entitlement to contingent cash
bonuses of USD$54m and a free carry on all exploration expenses up to final
investment decision (when a development plan is approved) remains unchanged.
2. Issue of shares for cash to YA Global Masters SPV Ltd ("YA")
SacOil shareholders ("Shareholders") are advised that 29 328 257 new SacOil
ordinary shares ("SEDA Shares") will be issued to YA at a price of R0.43 per
SEDA Share pursuant to the terms of the Standby Equity Distribution Agreement
dated 12 October 2011 and approved by Shareholders in a general meeting on 17
November 2011.
Application has been made to the JSE Limited ("JSE") to grant a listing of
the SEDA Shares and to the London Stock Exchange for the admission of the
SEDA Shares to trading on the AIM Market ("AIM"). The listing of the SEDA
Shares on the JSE and the admission of the SEDA Shares to trading on AIM are
expected to take place on Wednesday, 4 April 2012. The SEDA Shares will rank
pari passu in all respects with the existing SacOil ordinary shares already
in issue. The proceeds of the issue of the SEDA Shares will be utilised
towards funding of corporate costs in relation to potential transactions and
proposals.
3. Appointment of auditors and joint broker
The Company is pleased to announce the following appointments effective 26
March 2012:
- Ernst & Young Inc. (South Africa) as independent external auditors; and
- FirstEnergy Capital as joint broker (United Kingdom).
FirstEnergy is a leading international energy-focused bank, providing full-
service energy investment banking operations. FirstEnergy`s UK activities
include corporate broking, equity research, sales and trading, corporate
mergers and acquisitions and oil and gas property acquisitions and
divestiture advisory.
ENDS
About SacOil
SacOil is an African independent upstream oil and gas company, focused on
African assets with a dual listing on the JSE and AIM. SacOil`s vision is to
build a balanced hydrocarbon exploration and production portfolio using the
Company`s African heritage to bring about a competitive advantage at the
point of entry SacOil`s primary strategic objective is the development,
exploration and production of discovered assets, with existing or near term
production, cash and revenue potential.
SacOil is focussed on oil and, where there is a defined access to market, gas
in proven hydrocarbon bearing basins. The company seeks to build a portfolio
of assets across the E&P spectrum from potentially "High Impact" exploration
through to undeveloped discoveries with near term cash flow potential, and
production with defined upside.
The Company is willing and able to operate through the exploration phase but
will continue to focus on the establishment of strategic industry
partnerships in order to maximise its opportunity set, manage portfolio risk
and ensure that the optimum technical and operating skills are applied to
each opportunity.
Consistent with this strategy, SacOil has built up an E&P portfolio including
oil discoveries in Nigeria and potentially high impact exploration in the DRC
detailed as follows:
- in Block III DRC, through its partnership with Total, it is
envisaged that the work program committed to will demonstrate
prospectively and eventually lead to oil production;
- in relation to OPL 281 Nigeria, SacOil is in the process of
evaluating and appraising oil discoveries through the reprocessing
of seismic data with a view to drill an appraisal well; remaining
conditions precedent to the farm in agreement include: perfection
of title and all the necessary Nigerian government and Nigerian
National Petroleum Company (`NNPC`) consents in relation to the
licence; and
- in OPL 233 Nigeria, the Joint Venture Committee consisting of
SacOil, NIGDEL and EER is committed to acquiring 3D OBC seismic
data, which should assist in evaluating the size of the existing
oil discovery.
JSE Sponsor
Nedbank Capital
For Further information please contact:
finnCap Limited (NOMAD and Joint Broker UK) +44 (0)20 7220 0500
Matthew Robinson / Christopher Raggett
FirstEnergy Capital (Joint Broker UK)
Majid Shafiq +44 (0) 20 7448 0200
Travis Inlow
The Riverbed Agency (SA)
Raphala Mogase +27 (0) 11 783 7903
Pelham Bell Pottinger (UK)
Philip Dennis +44 (0)20 7861 3919
Nick Lambert +44 (0)20 7861 3936
Rollo Critchton-Stuart +44 (0)20 7861 3918
Date: 29/03/2012 08:00:01 Supplied by www.sharenet.co.za
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