SacOil Holdings Limited Drilling Programme - Lagia Oil Field (1429J)
December 15 2015 - 8:45AM
UK Regulatory
TIDMSAC
RNS Number : 1429J
SacOil Holdings Limited
15 December 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")
Results of drilling Programme - Lagia Oil Field
SacOil Holdings Limited, on behalf of its subsidiary, Mena
International Petroleum Company Limited ("Mena"), is pleased to
announce an update on the drilling of the Lagia 11, Lagia 15 and
Lagia 16 wells, which forms part of the Phase 2 field development
operations at its 100% owned Lagia oil field in Sinai, onshore
Egypt.
As reported previously, the Lagia 11, Lagia 15 and Lagia 16
wells are part of a five well drilling campaign aimed at increasing
and optimising production. The remaining wells to be drilled are
Lagia 12 and 13, which will target the Nukhul formation.
SacOil is pleased to announce that Lagia 11 was drilled to a
depth of 1,434 ft below drill floor and encountered approximately
213 ft of gross oil bearing Nukhul formation. The well was placed
in production and is producing oil with a gravity of 13 degrees
API.
Lagia 15, the second well in the programme, was drilled to a
depth of 1,820 ft below drill floor. The well intersected the
Nukhul formation as well the Thebes formation and discovered
producible oil in both formations. Preliminary results indicate
that the discovery in the Thebes formation is of a higher API
gravity as compared to the oil produced from the Nukhul formation
in this field. Preliminary results also indicate that the API
gravity of the Thebes is above 24 API gravity. Further analysis of
the Thebes discovery will be concluded before Lagia 15 is placed in
production.
Lagia 16, the third well in the programme was drilled to a depth
of 1,430 ft below drill floor and encountered 213 ft of gross oil
bearing and potentially productive Nukhul formation and the well
will be placed in production. The oil intersected in Lagia 16 is
expected to have similar API gravity to the main producing Nukhul
formation.
SacOil is now monitoring each of these wells and evaluating the
potential of applying stimulation techniques with a view to
optimising flow rates and achieving stabilised flow rates and
production profile for the Lagia Block. Further announcements will
be made in this regard in due course.
Dr Thabo Kgogo, Chief Executive Officer of SacOil,
commented,
"The discovery of a light oil in the Thebes formation is very
significant for the Lagia assets and for SacOil as a company. This
discovery should add to the field reserves and may add to
production from the Lagia field in the future.
The focus for our technical team now is to further evaluate
these well results to establish a better understanding of the
potential stabilised production rates from each well and the field
as a whole. We are certainly pleased with these initial results and
look forward to the commencement of our Lagia 12 and 13 wells. We
remain on track to deliver on our previously stated production
milestone of 1,000 bopd by our financial year end"
More details on the results of the drilling, as well as progress
on the current operations, will be announced in due course, as
operations progress.
JSE Sponsor
PSG Capital Proprietary Limited
17 December 2015
For further information please contact:
SacOil Holdings Limited +27 (0)10 591 2260
Bradley Cerff
finnCap Limited (Nominated Adviser and +44 (0)20 72200500
broker)
Christopher Raggett and James Thompson
FirstEnergy Capital (Financial Adviser +44 (0)20 7448 0200
and Joint Broker UK)
Hugh Sanderson / David van Erp
Buchanan Communications Limited +44 (0)20 7466 5000
Ben Romney
About SacOil
SacOil is a South African based independent African oil and gas
company, dual-listed on the JSE and AIM. The Company has a diverse
portfolio of assets spanning production in Egypt, exploration and
appraisal in the Democratic Republic of Congo, Malawi and Botswana,
and midstream and downstream operations including a gas pipeline
project in Mozambique and an oil terminal project in Equatorial
Guinea. The Company continues to evaluate industry opportunities
throughout Africa as it seeks to establish itself as a leading,
full-cycle pan-African oil and gas company.
This information is provided by RNS
The company news service from the London Stock Exchange
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