SacOil Holdings Limited OPL 281 Update (3853F)
November 12 2015 - 2:00AM
UK Regulatory
TIDMSAC
RNS Number : 3853F
SacOil Holdings Limited
12 November 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")
Update on the Termination process related to Oil Prospecting
Licence 281
As previously announced to shareholders on 1 April 2015, SacOil
terminated its participation with Transnational Corporation of
Nigeria Plc ("Transcorp"), the operator of Oil Prospecting Licence
281 ("OPL281").
In a letter dated 10 December 2014 to SacOil, Transcorp
acknowledged SacOil's termination of the Farm-out and Participation
Agreement ("FoPA") and confirmed the effective date of such
termination as 3 December 2014. Transcorp further acknowledged its
liability in writing to SacOil and agreed to refund the farm-in
fees and interest thereon in line with the provisions of the FoPA,
requesting SacOil to provide Transcorp with written details of the
bank account into which payment would be made. The only contention
from Transcorp at that time was the interest rate applicable to the
refund although such interest rate was clearly stipulated in the
FoPA.
SacOil paid $12.5 million towards farm-in fees on 28 February
2011, which fees contractually are to be refunded with interest by
Transcorp. Notwithstanding the receipt of Transcorp's written
acknowledgment of its repayment obligation in December 2014, as
well as its public announcement in April 2015 acknowledging
SacOil's exit from OPL281, SacOil subsequently received notice on
18 June 2015 from Transcorp that it's termination of the FoPA was
wrongful and amounted to a repudiation of the FoPA. Transcorp has
initiated court proceedings in this respect and is also claiming
damages from SacOil. SacOil is opposing these proceedings and has
engaged counsel to recover all monies due and payable pursuant to
the FoPA.
In the interim and pursuant to the FoPA, SacOil filed a notice
for arbitration on 28 August 2015 with the Nigerian Chartered
Institute of Arbitrators, Nigeria Branch, to recover its farm-in
and related fees plus contractual interest thereon.
The SacOil board and management remain committed to recovering
from Transcorp all amounts owed and to institute the requisite
legal actions accordingly.
JSE Sponsor
PSG Capital Proprietary Limited
12 November 2015
For further information please contact:
SacOil Holdings Limited +27 (0)11 463 6884
Bradley Cerff
finnCap Limited (Nominated Adviser and +44 (0) 20 7220 0500
broker)
Christopher Raggett and James Thompson
FirstEnergy Capital (Joint broker) +44 (0) 20 7448 0200
Hugh Sanderson / David van Erp
About SacOil
SacOil is a South African based independent African oil and gas
company, dual-listed on the JSE and AIM, with business operations
in Egypt, the Democratic Republic of Congo ("DRC"), the Republic of
Malawi and the Republic of Botswana. SacOil also operated in
Nigeria until 19 May 2015. The Company has partnered with the
Public Investment Corporation SOC Limited and the Instituto de
Gestão das Participações do Estado on a project that entails the
construction of a gas pipeline from Mozambique to South Africa and
the distribution and marketing of gas in southern Africa. The
Company continues to evaluate opportunities to secure high impact
acreage in other established and prolific hydrocarbon basins in
Africa.
This information is provided by RNS
The company news service from the London Stock Exchange
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