SacOil Holdings Limited Lagia oil field first phase completion (3850D)
January 28 2015 - 7:30AM
UK Regulatory
TIDMSAC
RNS Number : 3850D
SacOil Holdings Limited
28 January 2015
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")
Completion of first phase development Operations - Lagia Oil
field
SacOil Holdings Limited ("SacOil") through its subsidiary Mena
International Petroleum Company Limited ("Mena") is pleased to
announce the successful on-time completion of phase 1 of the field
development operations at the Lagia oil field in Sinai, onshore
Egypt.
Highlights
-- Successful completion of hydraulic stimulation on all five existing wells.
-- Phase 2 operations to commence by June 2015, installation of
steam facilities and the drilling of up to 5 additional wells
As previously reported, the aim of phase 1 was to stimulate and
re-complete the five existing production wells at the Lagia oil
field in order to increase production.
Operations commenced on the 4(th) January 2015 and initial
production indications are positive and the Company is confident
that the targeted average production of 350 barrels of oil a day
will be achievable from these five wells once they are in sustained
production.
The oil produced from the Lagia field is trucked to the GPC
(General Petroleum Company) facilities, which is owned by Egyptian
General Petroleum Corporation, approximately 300 km from the Lagia
field. Payments for delivered crude are paid directly to Mena.
Following the successful completion of phase 1 the wells remain
on production and SacOil is preparing and planning a second phase
of field development and production optimisation to start by June
2015. This second phase includes the installation of steam
facilities for a thermal recovery process on the existing
production wells and the drilling of up to five additional thermal
wells at the Lagia oil field, with the intent of further enhancing
production and the recovery of oil at the oil field.
Commenting on the completion of phase 1 development operations,
Dr Thabo Kgogo, SacOil CEO, said, "This success of our development
operation at the Lagia oil field is a key milestone for SacOil. It
marks our transformation from an exploration and production company
into realizing revenues from the sale of crude oil. The next phase
of our operations at the Lagia oil field will focus on increasing
production, as well as maintaining cost efficiencies and
profitability during this oil price cycle."
"The lower oil price environment is something we are obviously
following very closely. For the time being our net cash position
remains positive and we remain committed to our strategic focus of
portfolio rationalization, capital restructuring and overall cost
savings."
JSE Sponsor
PSG Capital Proprietary Limited
28 January 2015
For further information please contact:
SacOil Holdings Limited +27 (0)11
Bradley Cerff 575 7232
finnCap Limited (Nominated Adviser
and Broker) +44 (0) 20
Matthew Robinson / Christopher Raggett 7220 0500
FirstEnergy Capital (Financial Adviser
and Joint Broker UK) +44 (0) 20
Travis Inlow 7448 0200
Instinctif Partners London (UK Investor
Relations) +44 (0)20
David Simonson / Anca Spiridon 7457 2020
Instinctif Partners Johannesburg
(SA Investor Relations) +27 (0)11
Nicholas Williams / Tshepo Mophiring 447 3030
Qualified Person Review
This release has been reviewed by Bradley Cerff, Executive
Director, who is a member of the Society of Petroleum Engineers
with over 15 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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