TIDMSAC
RNS Number : 9277B
SacOil Holdings Limited
10 April 2013
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 Operations Update
SacOil, the independent African oil and gas company, is pleased
to provide the market with the following update on the Company's
on-going operational activities.
Highlights:
-- Malawi, Block 1: Planning of environmental and social impact assessment
-- Democratic Republic of the Congo ("DRC"), Block III: 2D
seismic data planning and acquisition
-- Nigeria, OPL 233: Approval of 2013 Work Program and Budget;
re-interpretation of seismic and well data
-- Nigeria, OPL 281: Expected release of PSC and re-interpretation of seismic and well data
Malawi, Block 1: Planning of environmental and social impact
assessment
Following the award of Block 1, in December 2012, first
operations have commenced, with the initial planning associated
with the environmental and social impact assessment underway. In
consultation with Malawian government, SacOil is currently
targeting to have this work programme complete by Q2 2014. As
previously outlined, the term of the exploration license is an
initial four year period, followed by two subsequent three year
renewal periods.
SacOil was awarded a 100% interest and operator status in Block
1, an onshore petroleum prospecting license in Malawi. At 12,265
square kilometres, Block 1 is the second largest petroleum
exploration license demarcated in Malawi.
Block 1 is located in the North Western part of Malawi bordering
Tanzania to the north and Zambia to the west. The licence is
located on trend with the East African rift system which is a
proven exploration province with prolific oil discoveries in Sudan,
Chad, Kenya and Uganda. Through initial work completed, the SacOil
technical team anticipates that the same Tertiary rift system will
be present in Malawi.
DRC, Block III: 2D seismic data planning and acquisition
As previously announced, Total E&P RDC ("Total")
successfully acquired an airborne gravity and magnetic survey over
the northern part of Block III outside the Virunga National
Park.
Processing and interpretation of the data has now been completed
and confirms the expected geological trend observed in the area.
SacOil's interpretation and geological model suggests 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 to be confirmed with seismic data. The
orientation of this modeled basin is believed to be on trend with
the basin orientation where the large discoveries have been made in
the Albertine Graben by other operators.
With this positive geological information, planning for the
acquisition of a 2D seismic survey to map potential oil and gas
prospects has begun. The current design envisages that at a minimum
of 400 km of 2D seismic data will be acquired during the next dry
season, which starts December 2013.
The operator is currently active in Block III, with
environmental and societal personnel on the ground to finalise the
data acquisition and to complete the environmental and social
impact report for submission to the DRC authorities. Total's
technical team is currently working with three bidders to optimise
the 2D seismic acquisition design according to the local
topography. There has been a delay of approximately six months to
the planned work program, as a result of civil unrest in the area.
Taking into account these delays, the JV requested an extension
from the DRC government to the license, and in December 2012 the
Block III license was extended by one year with the license
expiring in the January 2016. With the situation on the ground now
stabilised, it is anticipated that the seismic acquisition will
take place within the next dry season, December 2013.
Nigeria, OPL 233: Approval of 2013 Work Program and Budget,
Re-interpretation of seismic and well data
In February 2013 the Nigerian National Petroleum Corporation
("NNPC") approved the OPL 233 work program and budget for 2013. The
approved work program includes the acquisition and processing of a
100 square kilometers of 3D Ocean Bottom Cable (OBC) seismic survey
to be acquired over the block and the drilling of an exploration
well.
A site survey has been successfully completed by a seismic
contractor and the final report is being compiled. Following the
receipt of the site survey report, the seismic acquisition design
parameters will be finalised and the OBC seismic survey is expected
to be acquired during the next dry season in Q3 2013. The survey
will enable the optimum placement of a well to appraise the
Olobia-1 oil discovery on the Block and for SacOil to develop an
understanding of the blocks prospectivity.
In addition, SacOil is in the process of reviewing the existing
seismic data in more detail and on completion will update its
internal evaluation of the OPL 233 resources. It has also, sourced
additional 2D data on the south-western portion of the concession,
which will assist in the identification of a number of additional
leads and prospects for subsequent further evaluation of the
block.
Nigeria, OPL 281: Expected release of PSC and re-interpretation
of seismic and well data
SacOil is awaiting the outcome of final discussions between the
NNPC and Transcorp relating to the OPL 281 PSC. Once this is done,
a PSC execution date will be agreed and communicated to SacOil. In
addition, SacOil has completed the seismic and well
re-interpretation of the existing 3D seismic data, and is currently
in the process of engaging with a Competent Person to certify the
OPL 281 contingent resources. SacOil has identified substantial
prospective resources in OPL 281, which will be subjected to the
Competent Person for certification.
The 2013 program remains subject to final NNPC approvals, but is
expected to be focused on reprocessing of existing and raw 3D
seismic data over the block and the drilling of one well.
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.
10 April 2013
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
FirstEnergy 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 van der Schyff
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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