TIDMSAC
RNS Number : 5582S
SacOil Holdings Limited
08 November 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 Quarterly Operations Update
SacOil, the South African based, independent African oil and gas
company listed on the JSE and AIM (JSE: SCL / AIM: SAC) is pleased
to provide the following update on the Company's on-going
operational activities in the Democratic Republic of Congo ("DRC"),
Nigeria, Malawi, and Botswana.
SacOil, under the guidance of its new board of directors,
remains focussed on delivering its vision to build a balanced
portfolio of assets from exploration to established production and
cash flow in Africa.
The Company is pleased with the progress of its existing
portfolio of exploration and appraisal assets, and continues to
evaluate a number of opportunities to secure new value accretive
acreage in other established and prolific African hydrocarbon
basins.
Highlights:
-- DRC, Block III: 2D seismic data planning and acquisition
-- Nigeria, OPL 233: Execution of 2013 work program and 3D Seismic data acquisition
-- Nigeria, OPL 281: Re-interpretation of seismic and well data
-- Malawi, Block 1: Planning of environmental and social impact assessment
-- Botswana, granting of Licenses 123, 124 and 125
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.
The interpretation of the processed gravity and magnetic survey
confirms the geological trend observed in the adjacent concessions
in Uganda. Features similar to those found to be oil-bearing in
Uganda in the Albertine Graben have been observed and identified
with the new data. With this positive and exciting geological
information, planning for the acquisition of a 2D seismic survey
has begun. The current design envisages the acquisition of a
minimum of 400 km of 2D seismic data.
There has been a delay of approximately six months to the
planned work program, as a result of civil unrest to the south of
our area of activity. With the situation on the ground now
stabilised, it is anticipated that the seismic acquisition will
take place within the next dry season in Q1 2014.
Nigeria, OPL 233: Execution of 2013 work program and 3D Seismic
data acquisition
As previously reported the Work Program and the Work Program
Budget for 2013 were approved by National Petroleum Investment
Management Services (NAPIMS) during March 2013. Following the
approval, the OPL 233 JV Partners (the "JV Partners") have reworked
the existing seismic data on OPL 233, and incorporated further data
on the South-Western portion of the concession, providing an
integrated geological understanding of the acreage and the
region.
Whilst inherent uncertainties remain in the current data due to
the dated vintage, poor quality and uncertain navigation
parameters, the JV Partners remain optimistic on the contingent
resources and potential upside. In addition, the JV Partners have
identified a number of additional prospective leads for subsequent
investigation and possible drilling.
Execution of 2013 work program
In preparation for the 3D Ocean Bottom Cable ("OBC") Seismic
survey on OPL 233, a contract for Environmental Impact Assessment
(EIA) has been awarded to Tidalflow Nigeria Limited. Tidalflow has
already completed the wet season sampling on schedule, and will
undertake the sampling for dry season during November 2013.
Seabed Hazard Survey: Further to an invitation to tender to
qualified companies for a geohazard survey over OPL 233, involving
surveying the OPL 233 seafloor with sidescan sonar apparatus, a
preferred contractor has been selected and discussions towards the
finalization of the contract and mobilization to site are
underway.
3D OBC Seismic Survey: Three companies were invited to tender
for the contract to conduct the survey to acquire 3D OBC Seismic
Data. The JV Partners have completed the evaluation processes with
respect to the Technical and Commercial bids, along with the
representative from NAPIMS. Requisite site visits were carried out
to do a physical evaluation of equipment tendered by the bidders.
The contract was subsequently awarded to the Geomarine, and
discussions towards the finalization and mobilization of the OBC
seismic survey are underway.
3D OBC Data Processing: Similarly, tenders have been invited for
the data processing of the 3D OBC Seismic survey. The tenders have
been evaluated and a preferred contractor has been identified with
award process to be finalized within the next couple weeks.
Nigeria, OPL 281: Re-interpretation of seismic and well data
Similar to OPL 233, SacOil has performed a technical review of
the borehole and 3D seismic data on the lease. Management is
satisfied that, despite some uncertainties in the data, the current
estimate of contingent resources as reported by AGR TRACS, may be
conservative and with further evaluation it is our opinion that the
resources may actually be more substantial than initially
anticipated. The potential increase in resources can be attributed
to several deeper channel leads and prospects, which holds a
possibility of adding to the prospective resources of OPL 281.
Malawi, Block 1: Planning of environmental and social impact
assessment
At 12,265 square kilometres, Block 1 is the second largest
petroleum exploration licence demarcated in Malawi. SacOil has an
exclusive 100% interest and operator status in this block.
Block 1 is located in the North-Western part of Malawi bordering
Tanzania to the north and Zambia to the west. The licence area 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 which may, therefore, potentially yield
deposits of hydrocarbons.
Following the award of Block 1, in Malawi, December 2012,
initial planning associated with the environmental and social
impact assessments are underway. In consultation with the Malawian
government, SacOil is currently targeting to have all environmental
work completed by Q3 2014.
Botswana, Licenses 123, 124 and 125
SacOil has embarked on a process of collating all geological
information available on the petroleum prospectivity pertaining to
these licences. A review of this information is currently underway.
The three licences cover an area of approximately 49,463 square
kilometres.
Jordaan Fouche, VP Technical, commented:
"SacOil continues to make strides on understanding the technical
and commercial merits of the projects through the execution of the
work programs on the assets. We remain confident and optimistic
that expenditures on the Nigerian assets will result in additions
to the Company's existing resources and ultimate conversion to
reserves and hydrocarbon production."
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.
08 November 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
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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