| Tue 17 Apr 2012, 8:00 | | SCL - Sacoil Holdings Limited - Performance Bond |
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SCL
SCL
SCL - Sacoil Holdings Limited - Performance Bond
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")
17 April 2012
Johannesburg
USD$25 million Performance Bond approved to secure oil concession block OPL
233 in Nigeria
USD$10 million cash collateral to be put towards the work program as
stipulated in the production sharing contract for oil concession block OPL 233
Appointment of GMP Securities Europe LLP as joint broker
Performance Bond
SacOil is pleased to announce that it has successfully procured a USD$25
million Performance Bond ("Bond"), which enables it to assist NIGDEL United
Company Limited ("NIGDEL") to fulfil its obligations under the Profit Sharing
Contract ("PSC") on oil concession OPL 233 in Nigeria ("the Concession"). The
Bond is payable to the Nigeria National Petroleum Corporation ("NNPC").
SacOil entered into a farm-in agreement with NIGDEL and Energy Equity
Resources ("EER") dated 30 November 2010 under which SacOil and EER agreed to
assist NIGDEL in the procurement of the Performance Bond as required under the
PSC.
The Bond, which was issued by Ecobank Nigeria PLC ("Ecobank"), was approved on
the condition, inter alia, that cash collateral in the amount of USD$10million
is delivered in favour of Ecobank. SacOil has now delivered the aforementioned
cash collateral through a combination of debt and equity funding and
accordingly the Bond was posted on 13 April 2012.
SacOil has provided EER`s 50 per cent share of the obligations under the Bond,
secured against EER`s interest in the Concession. EER is obliged to repay to
SacOil its 50 per cent share of the Bond together with interest and costs
associated with the cash collateral and the procurement of the Bond prior to
the commencement of an agreed work program on the Concession.
The successful posting of the performance bond allows the partners to proceed
with the acquisition of up to 100 km2 Ocean Bottom Cable (OBC) 3D seismic
survey. Results of this survey are expected to enable the optimum placement
of an appraisal well following the Olobia-1 oil discovery which, if
successful, will be placed on an extended well test subject to NNPC and
Department of Petroleum Resources ("DPR") approvals. Production data obtained
from the extended well test should enable a better estimate of recoverable
resources and the optimal design of a full field development. This would not
only provide SacOil with the ability to book proved reserves, it would also
provide cash flow to SacOil and its partners. Results from the OBC survey are
furthermore expected to provide information on additional prospective
resources in the Concession which may enhance the value of the acreage and
support continued exploration and appraisal activities.
Appointment of joint broker
The Company is also pleased to announce the appointment of GMP Securities
Europe LLP as joint broker with immediate effect.
ENDS
About SacOil
SacOil is an African independent upstream oil and gas company, focused on
African assets with a dual listing on the JSE and AIM. SacOil`s vision is to
build a balanced hydrocarbon exploration and production portfolio using the
Company`s African heritage as a competitive advantage at the point of entry
where the primary strategic objective is the exploration, development and
production of discovered assets, with existing or near term production, cash
and revenue potential.
SacOil is focussed on oil and, where there is defined access to market, gas in
proven hydrocarbon bearing basins. The Company seeks to build a portfolio of
assets across the E&P spectrum from potentially "high impact" exploration to
undeveloped discoveries with near term cash flow potential, and through to
production with defined upside.
The Company is willing and able to operate through the exploration phase but
will continue to focus on the establishment of strategic industry partnerships
in order to maximise its opportunity set, manage portfolio risk and ensure
that the optimum technical and operating skills are applied to each
opportunity.
Consistent with this strategy, SacOil has built up an E&P portfolio including
oil discoveries in Nigeria and potentially high impact exploration in the DRC
as follows:
in Block III, through its partnership with Total, it is envisaged that the
work program committed to will demonstrate prospectivity and eventually lead
to oil production;
in relation to OPL 281, SacOil is in the process of evaluating and appraising
oil discoveries through the reprocessing of seismic data with a view to drill
an appraisal well; remaining conditions precedent to the farm in agreement
include perfection of title and all the necessary Nigerian government and NNPC
consents in relation to the licence; and
in OPL 233, SacOil is committed to acquiring 3D OBC seismic data, which should
assist in evaluating the size of the existing oil discovery and the potential
upside of the block.
JSE Sponsor
Nedbank Capital
For further information please contact:
finnCap Limited (Nominated Adviser and +44 (0)20 7220 0500
Broker)
Matthew Robinson / Christopher Raggett
First Energy Capital (Joint Broker UK) +44 (0) 20 7448 0200
Majid Shafiq
Travis Inlow
GMP Securities Europe LLP (Joint Broker UK) +44 (0)20 7647 2800
Nick Morgan
Chris Beltgens
The Riverbed Agency (SA)
Raphala Mogase +27 (0) 11 783 7903
Pelham Bell Pottinger (UK)
Philip Dennis +44 (0)20 7861 3919
Nick Lambert +44 (0)20 7861 3936
Rollo Crichton-Stuart +44 (0)20 7861 3918
Date: 17/04/2012 08:00:01 Produced by the JSE SENS Department.
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