Operations Update (6280V)

TIDMSAC

RNS Number : 6280V

SacOil Holdings Limited

17 January 2012

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")

17 January 2012

Johannesburg

DRC Presidential Ordinance granted in respect of Total's 60% interest in SacOil's Block III

SacOil is pleased to announce that the Government of the Democratic Republic of Congo ('DRC') has granted a Presidential Ordinance to Total E&P RDC, the operator of Block III ('the Operator'), for their 60% interest in Block III. Pursuant to the Presidential Ordinance, the work programme approved by the Block III Operations Committee ('OpsCom') for 2012 will now commence in the next few weeks.

The initiation of the work programme follows extensive work undertaken by the Operator over the past six months. An Airborne Gravity and Magnetic Feasibility study as well as satellite imagery of the topography, physiography and vegetation of the block was completed in order to provide a geo-referenced numerical model for future operations in the block.

A budget to the end of 2012 of $30 million has been approved by the OpsCom and will fund the initial work programme. An Airborne Gravity and Magnetic Survey as well as the acquisition of a 2D seismic exercise on the northern area of the Block III located outside the Virunga National Park will be done during 2012. This seismic survey will estimate the properties of the rock and map the potential oil and gas prospects. Subject to positively identifying structures that may contain oil and gas, the Operator intends to drill an exploration well, which will determine the oil and gas potential and commercial viability of Block III.

Following the farm-out of Block III to Total in March 2011, SacOil is carried for the entire work programme and will not be required to contribute any further capital into this project until final investment decision, which is when a development plan is put in place.

Robin Vela, CEO of SacOil commented: "The granting of the ordinance is a significant step for progressing the asset in that the required testing and evaluation of the oil and gas prospects can begin in earnest. We believe that there is huge potential in this asset due to the neighbouring oil and gas discoveries in Uganda which suggest that Block III is in an attractive and hydrocarbon prospective address. We look forward to positive test results."

ENDS

About SacOil

SacOil is a South African based JSE and AIM listed Exploration & Production company focused exclusively on operations in Africa, where it has a competitive advantage at the point of entry. To date it has operations in the DRC (and since partnered with Total), Nigeria and South Africa and continues to evaluate a number of opportunities to secure new value accretive acreage in other established and prolific African hydrocarbon basins.

About the Block III Operations Committee

The Operations Committee was established in August 2011 and consists of members from SacOil, Total, DIG Oil Proprietary Limited ('DIG') and the DRC Government. The committee is in constant communication but formally meets twice a year.

About Block III

Pursuant to the Block III farm in agreement, SacOil retains an effective 12.5% interest in Block III, with Total holding 60%, DIG holding 12.5% and the DRC Government holding the remaining 15%. SacOil and DIG's interests are held through a local DRC entity named Semliki Energy SPRL.

Block III is situated in the Albertine Graben, DRC and comprises an area of 3,177 km(2), 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 1,5 billion 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.

For further information please contact:

JSE Sponsor

The Standard Bank of South Africa Limited

 
 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 (SA) 
  Raphala Mogase / Bongiwe Moeli                       +27 (0) 11 783 7903 
 
  Public Relations (United Kingdom) 
  Pelham Bell Pottinger (UK) 
 Philip Dennis/ Nick Lambert/Rollo Crichton-Stuart    +44 (0)20 7861 3232

Additional information on SacOil can be found at www.sacoilholdings.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCBDGDBDUBBGDL

Sacoil (LSE:SAC)
Historical Stock Chart
From May 2024 to Jun 2024