TIDMSAC
RNS Number : 9990R
SacOil Holdings Limited
14 November 2011
NEWS RELEASE
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 payment net 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 50 246 - -
interest
Reconciliation of
headline earnings (31 097) (6 951) (29 750)
Loss for the period
Loss on sale of intangible
assets 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 - (54 457)
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)
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 % Group and %
Company Six Company Sex
months ended months ended
31 31 August
August 2011 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 km(2), 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FFUFLDFFSEDF
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