SacOil notes that the JSE Limited (JSE) has today announced on the Stock Exchange News Service of the JSE("the announcement"), a public censure of the Company in respect of a breach of general principle (v) as contained in the JSE Listings Requirements ("public censure").
The public censure relates to the disclosure of headline earnings per share in the trading statements referred to in the announcement. SacOil submits that the difference between the information contained in the relevant trading statements referred to, arose from a differential accounting treatment of the Group's intangible assets. The accounting treatment of intangible assets is a complex and opaque issue that has been the subject of global debate. Furthermore, it was also the first time that SacOil reported on the divestment of an intangible asset.
SacOil co-operated fully throughout the JSE's investigation, has accepted the JSE's findings and the matter has now been fully concluded.
The Company has taken the following steps in order to prevent a recurrence of the events that lead to the JSE's investigation:
Ĝ the Company has appointed Ernst & Young as transactional advisers to advise on complex transactions and the accounting and tax treatment thereof;
Ĝ the Company has appointed Ernst &Young as its reporting auditors to facilitate access to oil and gas experienced professionals, both in South Africa and in the United Kingdom, to advise on, amongst other, the accounting treatment of complex transactions; and
Ĝ going forward and as far as practicably possible, the Group's interim reporting will, as a minimum, be released as reviewed by its auditors.
For further information please contact:
finnCap Limited (Nominated Adviser and Broker)
+44 (0)20 7220 0500
Matthew Robinson / Christopher Raggett
FirstEnergy Capital (Joint Broker UK)
+44 (0) 20 7448 0200
GMP Securities Europe LLP (Joint Broker UK)
+44 (0)20 7647 2800
The Riverbed Agency (SA)
+27 (0) 11 783 7903
Pelham Bell Pottinger (UK)
+44 (0)20 7861 3919
+44 (0)20 7861 3936
+44 (0)20 7861 3918
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