| Mon 23 May 2011, 8:00 | | SCL - SACOIL Holdings Limited - Corporate Update |
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SCL
SCL
SCL - SACOIL Holdings Limited - Corporate Update
SACOIL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
JSE share code: SCL
AIM share code: SAC
ISIN: ZAE0000127460
("SacOil" or "the Company")
CORPORATE UPDATE
SacOil Holdings Limited, the independent Pan-African upstream oil and gas
company, listed on both the JSE Limited ("JSE") and the AIM market of the
London Stock Exchange ("AIM"), today provides an update on its corporate
activities.
Further to the Company`s admission to AIM on 8 April 2011, the Company has
embarked on a number of successful initiatives, including road shows and
presentations, to create awareness both locally and internationally of
SacOil`s strategic objectives. As part of the Company`s growth strategy,
SacOil reviewed a number of potential capital raise opportunities to fund its
current and future operations. Global interest in a potential share offering
was substantial however, given the present volatility in the markets, recent
movements in the Company`s share price, particularly on the JSE, and a concern
regarding dilution from existing shareholders, the Company has accordingly
determined that it will not complete a private placing of shares at this time.
The Company has instituted an inquiry into the cause of the share price
movements and has raised concerns regarding the possible manipulation and/or
short selling of its securities, to the relevant department of the JSE. The
Company has also received confirmation from all its major shareholders that
they continue to support the Company and have not been divesting their
interests in SacOil.
Robin Vela, Chief Executive Officer of SacOil, commented today: "SacOil has
embarked on a number of successful international roadshows to raise awareness
of the Company following our admission to AIM in April. Preliminary
exploration at our Block III concession in the Democratic Republic of Congo is
progressing well and the farm in agreement with our partner Total provides for
no further capital outlay from SacOil. In Nigeria, SacOil is fully funded for
the next 12 months to carry out our exploration programmes at Blocks OPL 281
and OPL 233 together with our partners.
In line with our stated growth strategies, the Company continues to be
presented with and evaluate a number of opportunities to acquire new value
accretive acreage which will require future capital to be raised, as and when
deemed appropriate by the Company and our supportive shareholders."
Bryanston
23 May 2011
Sponsor
Standard Bank
Nominated Adviser
finnCap Limited
Matthew Robinson/Ed Frisby
+44 (0) 20 7220 1658
Legal Adviser
Deneys Reitz
Contacts
Tavistock (Public Relations UK)
Edward Portman / Jos Simson
Tel: +44 (0) 20 7920 3150
The Riverbed Agency (Public Relations SA)
Raphala Mogase/Bongiwe Moeli
Tel: +27 (0) 11 783 7903
Date: 23/05/2011 08:00:02 Produced by the JSE SENS Department.
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