SCL - SacOil - SacOil`s Appeal against US$2m Identiguard Claim Upheld Summary

Release Date: 06/06/2012 08:00
Code(s): SCL
 
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SCL - SacOil - SacOil`s Appeal against US$2m Identiguard Claim Upheld Summary 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") 6 June 2012 Johannesburg SacOil`s Appeal against US$2m Identiguard Claim Upheld Summary South Africa`s Supreme Court of Appeal dismisses Identiguard`s claim to US$2m from SacOil`s subsidiary and awards SacOil costs Background SacOil previously reported on the application instituted by Identiguard International (Proprietary) Limited ("Identiguard") against South Africa Congo Oil (Pty) Limited ("SacOil Pty"), a subsidiary in which the Company owns 50% of the issued share capital. Identiguard obtained a judgment against the DRC Government and in partial execution of that judgment, Identiguard sought to attach the payment of the supplementary signature bonus (US$2 million) under the Block III Production Sharing Agreement that was concluded between SacOil Pty and the DRC Government. The South Gauteng High Court delivered judgment in favour of Identiguard during May 2011 and authorised the notice of attachment. SacOil Pty applied for leave to appeal against the South Gauteng High Court judgment and was granted leave to appeal to the South African Supreme Court of Appeal ("SCA"). The appeal was heard by the SCA on 15 May 2012 and the SCA reserved judgment. SacOil is pleased to inform shareholders that the appeal by its subsidiary, SacOil Pty, against the judgment delivered in May 2011 by the South Gauteng High Court in favour of Identiguard was successful. The appeal was heard by the SCA on 15 May 2012 and judgment was delivered on 31 May 2012. The SCA overturned the High Court order and replaced it with an order dismissing Identiguard`s application with costs. Identiguard had also prior to the allocation of a date for the hearing of the SCA appeal, launched an application in terms of Rule 49(11), requesting the South Gauteng High Court not to allow the judgment granted in its favour to remain suspended pending the outcome of the appeal, but instead to order SacOil Pty to pay the amount of US$2 million into Identiguard attorney`s trust account. This Rule 49(11) application was heard by the South Gauteng High Court on 20 March 2012 and judgment was reserved. Bearing in mind that the SCA appeal has since been heard and was successful, Norton Rose Inc., the attorneys acting on SacOil Pty`s behalf have sent a copy of the SCA appeal judgment to the South Gauteng High Court and have submitted that in the circumstances, the application in terms of Rule 49(11) should also be dismissed with costs. SacOil`s title to Block III is uncontested and the Company will continue its focus on bringing the asset to account with its partners Total and DIG Oil (Pty) Limited. Block III is a highly attractive exploration concession, adjacent to the approximate 1.2 billion contingent resource oil discoveries that were made in the Ugandan territory of Lak
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