| Mon 14 Mar 2011, 8:38 | | SCL - SacOil Holdings Limited - Update on Total transaction and the |
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SCL
SCL
SCL - SacOil Holdings Limited - Update on Total transaction and the
Company`s proposed admission to trading on the Alternative Investment
Market ("AIM") of the London Stock Exchange and including a response to a
complaint reportedly lodged against SacOil
SacOil Holdings Limited
Incorporated in the Republic of South Africa
(Registration number: 1993/000460/06)
Share code: SCL ISIN code: ZAE000127460
("SacOil" or "the Company")
Update on Total transaction and the Company`s proposed admission to trading
on the Alternative Investment Market ("AIM") of the London Stock Exchange
and including a response to a complaint reportedly lodged against SacOil
SacOil shareholders are advised that the transaction with Total relating to
Block 3, Albertine Graben, in the DRC ("Block 3) as announced on 4 March
2011 and the Company`s proposed admission to trading on AIM as announced on
8 March 2011, are on track and progressing well.
SacOil has been advised that one Kevin van der Walt ("van der Walt") has
lodged a complaint against the Company with the Johannesburg Stock Exchange
("JSE") and the Financial Services Board ("FSB"). SacOil has not received
any communication from either the JSE or the FSB in regard thereto. The
Company is however in possession of the complaint in which van der Walt
alleges that the Company has published incorrect alternatively misleading
information. This is categorically denied by the Company which maintains
that full disclosure on all material issues relating to the Company has
been and continues to be made. The Company believes that van der Walt`s
allegations are without foundation and have been occasioned by the Company
declining to accede to certain historic demands made on it by van der Walt.
From the copy of the complaint in the possession of the Company, it appears
that van der Walt alleges that SacOil shareholders were not advised of the
following:
1. the supplementary signature bonus (the "Block 3 Supplementary Signature
Bonus") due under the Production Sharing Agreement pertaining to Block
3 (the "Block 3 Production Sharing Agreement") has not been paid;
2. the minimum work and exploration programme (the "MWAEP") stipulated in
the Block 3 Production Sharing Agreement has not commenced; and
3. the existence of the litigation instituted against South African Congo
Oil Company (Proprietary) Limited by Identiguard International
(Proprietary) Limited in the High Court of South Africa (the
"Identiguard Litigation").
Shareholders` attention is drawn to the fact that all of the above points
have been fully disclosed and are canvassed, inter alia, in the AIM
Appendix (the "Appendix") available on the company`s website -
www.sacoilholdings.com/im/aim-rule26.php
Furthermore the nonpayment of the Block 3 Supplementary Signature Bonus
and the fact that Semliki Energy SPRL ("Semliki"), a 50% subsidiary of the
Company, has yet to be granted an exclusive zone of reconnaissance and
exploration ("EZRE") was also specifically referenced in the risk factors
section of the Appendix on the basis that there was no guarantee that:
* the DRC Government will not seek to exercise any rights it may have
under the Block 3 Production Sharing Agreement to terminate the Block 3
Production Sharing Agreement in relation to the failure (to date) to
pay the Block 3 Supplementary Signature Bonus to the DRC Government or
to provide the Block 3 Guarantee to the DRC Government or for any other
reason (although the DRC Government has not to date issued any notice
of breach under the Block 3 Production Sharing Agreement in regard
thereto); and
* Semliki will obtain an EZRE in respect of Block 3.
To date, the allegations by van der Walt have been published in the
weekend media without the Company`s written response to the media being
recorded. SacOil maintains that full disclosure was made at all times. In
particular SacOil categorically disputes allegations in the media that the
Company and its CEO, Robin Vela, misled shareholders about "signature
bonus" payments to the Government of the Democratic Republic of Congo and
withheld material information. SacOil is currently considering its course
of further action in respect of the allegations made by van der Walt.
Bryanston
14 March 2011
Sponsor
BDO Corporate Finance
Corporate Adviser
Renaissance BJM Securities (Proprietary) Limited
Legal Adviser
Deneys Reitz Inc
Contacts
SacOil
Robin Vela, Chief Executive Officer
Tel : +27 (0) 11 575 7232
Tavistock (Public Relations UK)
Jonathan Charles / Jos Simson
Tel: +44 (0) 20 7429 6666
The Riverbed Agency (Public Relations SA)
Raphala Mogase
Tel: +27 (0) 11 783 7903
Date: 14/03/2011 08:38:38 Produced by the JSE SENS Department.
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