Performance Bond and Appointment of Joint Broker (4412B)
April 17 2012 - 2:00AM
UK Regulatory
TIDMSAC
RNS Number : 4412B
SacOil Holdings Limited
17 April 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 April 2012
Johannesburg
-- USD$25 million Performance Bond approved to secure oil concession block OPL 233 in Nigeria
-- USD$10 million cash collateral to be put towards the work
program as stipulated in the production sharing contract for oil
concession block OPL 233
-- Appointment of GMP Securities Europe LLP as joint broker
1. Performance Bond
SacOil is pleased to announce that it has successfully procured
a USD$25 million Performance Bond ("Bond"), which enables it to
assist NIGDEL United Company Limited ("NIGDEL") to fulfil its
obligations under the Profit Sharing Contract ("PSC") on oil
concession OPL 233 in Nigeria ("the Concession"). The Bond is
payable to the Nigeria National Petroleum Corporation ("NNPC").
SacOil entered into a farm-in agreement with NIGDEL and Energy
Equity Resources ("EER") dated 30 November 2010 under which SacOil
and EER agreed to assist NIGDEL in the procurement of the
Performance Bond as required under the PSC.
The Bond, which was issued by Ecobank Nigeria PLC ("Ecobank"),
was approved on the condition, inter alia, that cash collateral in
the amount of USD$10million is delivered in favour of Ecobank.
SacOil has now delivered the aforementioned cash collateral through
a combination of debt and equity funding and accordingly the Bond
was posted on 13 April 2012.
SacOil has provided EER's 50 per cent share of the obligations
under the Bond, secured against EER's interest in the Concession.
EER is obliged to repay to SacOil its 50 per cent share of the Bond
together with interest and costs associated with the cash
collateral and the procurement of the Bond prior to the
commencement of an agreed work program on the Concession.
The successful posting of the performance bond allows the
partners to proceed with the acquisition of up to 100 km(2) Ocean
Bottom Cable (OBC) 3D seismic survey. Results of this survey are
expected to enable the optimum placement of an appraisal well
following the Olobia-1 oil discovery which, if successful, will be
placed on an extended well test subject to NNPC and Department of
Petroleum Resources ("DPR") approvals. Production data obtained
from the extended well test should enable a better estimate of
recoverable resources and the optimal design of a full field
development. This would not only provide SacOil with the ability to
book proved reserves, it would also provide cash flow to SacOil and
its partners. Results from the OBC survey are furthermore expected
to provide information on additional prospective resources in the
Concession which may enhance the value of the acreage and support
continued exploration and appraisal activities.
Appointment of joint broker
The Company is also pleased to announce the appointment of GMP
Securities Europe LLP as joint broker with immediate effect.
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 as a
competitive advantage at the point of entry where the primary
strategic objective is the exploration, development and production
of discovered assets, with existing or near term production, cash
and revenue potential.
SacOil is focussed on oil and, where there is 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 to undeveloped discoveries
with near term cash flow potential, and through to 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 as follows:
0 in Block III, through its partnership with Total, it is
envisaged that the work program committed to will demonstrate
prospectivity and eventually lead to oil production;
0 in relation to OPL 281, 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 NNPC consents in relation
to the licence; and
0 in OPL 233, SacOil is committed to acquiring 3D OBC seismic
data, which should assist in evaluating the size of the existing
oil discovery and the potential upside of the block.
JSE Sponsor
Nedbank Capital
For further information please contact:
finnCap Limited (Nominated Adviser and
Broker) +44 (0)20 7220 0500
Matthew Robinson / Christopher Raggett
First Energy Capital (Joint Broker UK)
Majid Shafiq
Travis Inlow +44 (0) 20 7448 0200
GMP Securities Europe LLP (Joint Broker
UK)
Nick Morgan
Chris Beltgens +44 (0)20 7647 2800
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 Crichton-Stuart +44 (0)20 7861 3918
This information is provided by RNS
The company news service from the London Stock Exchange
END
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