SacOil Holdings Limited Operational Update (7408N)
October 03 2012 - 2:00AM
UK Regulatory
TIDMSAC
RNS Number : 7408N
SacOil Holdings Limited
03 October 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")
SacOil Update on Operations
SacOil, the African independent upstream oil and gas Company, is
pleased to provide the market with the following update on the
Company's on-going operational activities.
Highlights:
-- Disposal of the Greenhills Plant: Reached agreement for
disposal of non-core plant to management and employees;
-- Nigeria, OPL 233: Seismic acquisition on part of the block; and
-- DRC, Block III: Final interpretation of airborne gravity and magnetic survey.
Disposal of the Greenhills Manganese Processing Plant
SacOil has agreed to sell its Greenhills Manganese Processing
Plant in South Africa (the "Plant"), a non-core asset, to a company
representing the management and employees of the Plant (the
"Purchaser") for a consideration of R7.0m. The management team is
led by Koenraad Josephine Joseph De Rooster.
The sale of the Plant is on an 'as is' and vendor financed
basis, with the liabilities for employees, rehabilitation and
environment aspects passing on to the Purchaser. The performance of
the Plant has deteriorated over the last few years as the
requirement for further capital expenditure has become apparent.
The Plant is currently loss making but reported a R1.67m profit
before tax for the twelve months to 28 February 2012.
The sale of the Plant will reduce the current monthly negative
cashflow costs to SacOil of some R0.2m; ensure the continued
employment of the personnel while providing empowerment for black
employees; enable SacOil management to focus on the core oil and
gas business; and reduce future potential liabilities.
The Purchaser has the obligation to provide working capital (an
upfront minimum of R2.0m) and capital expenditure for the
recapitalisation of the Plant in order to sustain it.
With the vendor financing, the Purchaser will pay SacOil R1.0m
on the 1(st) anniversary of closing date, and R2.0m for each
subsequent anniversary of closing date until the nominal amount of
R7.0m is paid. The effective date for the transaction is 17
September 2012.
Nigeria: OPL 233
The OPL 233 joint venture has gained access to a portion of a 3D
Ocean Bottom Cable (OBC) seismic survey acquired by Chevron. The
survey extends into OPL 233 from the Chevron operated OML 86
producing license. A preliminary study completed by Atlantic
Subsurface Energy Consultants, a NAPIMS approved consulting firm,
has identified the Olobia West prospect which appears to add
additional prospectivity to OPL 233. SacOil is in the process of
reviewing the data in more detail and on completion hopes to be in
a position to identify a number of additional leads and prospects
for subsequent further investigation and drilling. The Company also
plans to undertake a resource update following the analysis of data
collected from the Chevron OBC survey.
This seismic data is in addition to the 100km(2) OBC 3D seismic
which SacOil intends to acquire on the licence along with its
partner Energy Equity Resources ("EER") as part of its farm in
obligation for a 20% interest in OPL 233.
Democratic Republic of Congo: Block III, Albertine Graben
As previously announced, Total E&P RDC ("Total")
successfully conducted an airborne gravity and magnetic survey on
the northern part of Block III outside the Virunga National Park.
The final interpretation of the survey and report by Total has now
been received.
The preliminary processing of the survey broadly confirmed the
geological trend observed in the adjacent concessions in Uganda.
More detailed processing, however, identified features similar to
those found to be oil-bearing in Uganda. The gravity map was merged
with a basement map available from Ugandan seismic data. This
resultant gravity map exhibits a sharp basement escarp at the limit
of the basin, as well as some prospective areas consisting of
upthrown horst and graben structures.
The operator, Total, has confirmed the existence of a north-west
to south-east trending basin, whilst the horst and graben structure
as well as quality and thickness of the sedimentary infill will
need confirmation from seismic data. The orientation of this basin
is on trend with the discoveries made in the Albertine Graben by
Tullow Oil.
With this newly acquired information, planning for the
acquisition of a 2D seismic survey to map potential oil and gas
prospects is underway, with an estimated 400 km plus 120 km
optional of 2D data to be acquired during the next dry season.
Total has initiated the tendering process for this survey. Subject
to the positive identification of subsurface geological structures
that may contain oil and gas, the partners intend to drill an
exploration well, in order to further determine the potential
commercial viability of Block III.
Qualified Person Review
This release has been reviewed by Bradley Cerff, Vice President
Operations, who is a member of the Society of Petroleum Engineers
with 16 years' experience in petroleum exploration and management.
Bradley Cerff has consented to the inclusion of the technical
information in this release in the form and context in which it
appears.
3 October 2012
Johannesburg
ENDS
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)
James Pope
Chris Beltgens +44 (0) 20 7647 2800
Keyter Rech Investor Solutions (SA)
Vanessa Ingram +27 (0) 11 447 2993
Lynne Bothma
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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