SacOil Holdings Limited LAGIA OIL FIELD UPDATE (6879Q)

TIDMSAC

RNS Number : 6879Q

SacOil Holdings Limited

02 March 2016

 
 Aim Share Code: SAC   2 March 2016

SacOil Holdings Limited

("SacOil" or "the Company")

Completion Of Phase 2 Development PROGRAMME - LAGIA OIL FIELD

SacOil Holdings Limited, on behalf of its subsidiary, Mena International Petroleum Company Limited ("Mena"), is pleased to announce the successful completion of Phase 2 of the development programme and the achievement of the production target of 1,000 bbl/d at its 100% owned Lagia oil field in Sinai, onshore Egypt.

As reported previously, Phase 2 of the development program included:

1. The installation and commissioning of steam facilities for a thermal recovery process on existing production wells,

   2.    The drilling of five new thermal wells, and

3. The hydraulic stimulation of these five wells, specifically targeting the productive Nukhul geological formation, being the main producing reservoir, at approximately 1000 feet below mean sea level.

4. In addition one of the wells were deepened to investigate the reservoir and hydrocarbon potential of the underlying Thebes Formation.

All five thermal wells successfully intersected producible hydrocarbons in the Nukhul formation. In addition, as reported previously, Lagia 15 was drilled to a total depth of 1,820ft and intersected the Nukhul formation as well as the Thebes formation. Although the Nukhul Formation at this well location was not well developed, it discovered producible oil in the Thebes formation. Post drilling analysis indicates that the discovery in the Thebes formation is of a higher API gravity at 24 degrees API compared to the oil produced from the Nukhul formation in this field. The reserves and resource attributable to the Thebes formation will be included and the associated field Competent Persons Report (CPR) updated accordingly.

All 10 wells were placed on production and at the end of February 2016 reached a targeted wellhead production rate of 1,000 bbl/d.

This development programme was successfully completed under budget with no health or safety incidents reported.

Dr Thabo Kgogo, Chief Executive Officer of SacOil, commented,

"The completion of the Lagia phase 2 development programme and reaching our target of 1,000 bbl/d are significant operational milestones for SacOil. We are pleased to have achieved our stated production target, which represents another step towards our strategic aim to become a leading Pan African oil and gas company engaged in Upstream, Midstream and Downstream activities.

Our technical team has been pivotal in unlocking value at the Lagia oil field, particularly from the Thebes formation, which for the last 30 years has been explored and evaluated by a number of Independent Oil Companies with very limited success. Our focus moving forward on Lagia will be to optimise production commensurate with the current low oil price environment and to further evaluate and appraise the discovery in the Thebes

formation.   Further updates will be announced in due course, as operations progress."

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.

JSE Sponsor

PSG Capital Proprietary Limited

2 March 2016

Enquiries:

 
 SacOil Holdings Limited 
  Damain Matroos                         +27 (0)11 463 6884 
 finnCap Limited (Nominated 
  adviser and broker) 
  Christopher Raggett / James 
  Thompson                              +44 (0)20 7220 0500 
 FirstEnergy Capital (Joint 
  broker) 
  Hugh Sanderson / David van 
  Erp                                   +44 (0)20 7448 0200 
 Buchanan (Financial PR adviser)        +44 (0)20 7466 5000 
  Ben Romney / Helen Chan /          sacoil@buchanan.uk.com 
  Madeleine Seacombe

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

END

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March 02, 2016 02:00 ET (07:00 GMT)

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