Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
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SacOil Holdings - Initiating coverage with a recommendation of Speculative Buy at 5.25p with a 28p target price Key Data EPIC SAC Share Price 5.25p NMS 50,000 Spread 5p - 5.5p Total no of Shares 683.93 million Market Cap £35.91 million 12 Month Range 4.625p - 20p Market AIM Website www.sacoilholdings.com Sector Oil & Gas Contact Colin Bird, Executive DIrector + 27(0)11 575 7232 AIM and JSE listed SacOil is an independent African upstream oil and gas business. The Board has already assembled some key interests to provide the company with early production and cash flow as well as the opportunity to add substantial value by moving opportunities up the value chain. The portfolio today consists of licences in Nigeria which have oil discoveries and are close to production and where appraisal drilling is imminent; alongside a blue sky opportunity in the Democratic Republic of Congo ("DRC") which has been neatly de-risked following a farm-in by Total. The business model of this dual-listed oil play is to provide the finance and enter joint ventures with local partners in a number of African countries with a clear focus on projects where value can rapidly be added by supplying the necessary financing. Given these sort of fundamentals it is little surprise that investors have got very excited about the potential of SacOil which caused the share price to climb above 20p in Johannesburg ahead of the AIM flotation. The dust has now settled and today the shares sit at a third of that price and that begs the attention of serious investors. In Nigeria, the company has been buying into projects at what would appear to be 70 per cent discount to open market prices. Indigenisation policies of the Nigerian Government coupled with minimum work commitments are bringing licences back onto the market that have not been looked at for the last 3-5 years. By partnering up with a local company, SacOil has been able to gain a sensible stake in the OPL 233 and OPL 281 licences. These are two blocks which both have already seen oil discoveries where there is obvious scope to add value by turning a contingent resource into reserves. The plan here is to book reserves and start production. The priority is OPL 233 where investors will not have long to wait as a seismic survey is due to be shot in September/October 2011 with an appraisal well planned for Q2/Q3 2012. There does seem scope for a substantial increase in reserves at OPL 233 with consultants TRACS identifying more than 100 feet of net oil and given that this block lies adjacent to the 600 million barrels (MMbbls) plus Apoi field. Good seismic here together with this well data could allow a significant resource to be proved up by the end of 2012. Two wells already exist on OPL 281 as well as good seismic data which points to one large field that may potentially contain close on 100 million barrels. All that could be confirmed by future appraisal drilling which looks set to begin in April/May 2013. The news flow is just as powerful in the DRC where SacOil has gained a large acreage in the Albertine Graben which forms part of the Eastern African Rift System where modern era exploration began only in 1999. Since then around 800MMbbls of recoverable oil resources have been discovered which includes Tullow's Kingfisher (200MMbbl) and the Giraffe-Buffalo (300MMbbl) discoveries, just the other side of the border in Uganda. On trend with Tullow's discoveries lies SacOil's Block III, Albertine Graben, DRC Oil Concession ("Block III") which represents a high risk exploration project where it will be fully funded by Total until after a commercial reserve has been proved. Going forward Total has a gravity magnetic survey planned for August to outline the basin edges and understand how the petroleum system is located. Next year will see the acquisition of seismic data to be followed by the drilling of two exploration wells, one at the end of 2012, followed by a second well in 2013. It has been predicted that by 2020 Africa will account for 20 per cent of world oil production. In recent years there has been a scramble for African oil and gas licences following some sensational discoveries. SacOil is led by a Board that has an enviable network in the continent and that are used to doing business in Africa coupled with a real depth of experience in the oil and gas industry. Two recent appointments have been John Bentley and Bill Guest who became Non-Executive Directors in May 2011. John was behind JSE-listed Energy Africa Limited which he turned into one of the leading independent upstream companies with operations in a dozen African countries and several big hydrocarbon resource discoveries in the late 1990's before it was acquired by Petronas. John was also the Executive Chairman of FirstOil Africa until taken over by Bowleven in 2007. Bill Guest has been a Director of a number of UK-quoted exploration and producti
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[SAC]
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[SAC] Statement relating to an increase in its headline earnings released today, as required under the JSE Listings Requirements and based on International Financial Reporting Standards as well as International Accounting Standards. The Group has reached reasonable certainty that its headline earnings for the six months ended 31 August 2011 will be positively impacted by at least 640% to 660%, as against the equivalent period in the previous year. This increase relates primarily to the recognition of a value of R238,1 (£20, 6) million in relation to the disposal by Semliki SPRL, a 50% owned subsidiary of the Company, of a 60% interest ("Disposal") in the Block III oil concession right ("Block III") to Total E&P RDC ("Total") in March this year. Block III is located in the highly prolific Albertine Basin, in the Democratic Republic of the Congo. SacOil has retained a 12.5% interest in the asset. The recognition of the R238.1 (£20.6) million is in accordance with International Accounting Standard 37: Contingent Assets and Contingent Liabilities and is based on additional information available, at the time of this release, to the management of SacOil in relation to the probability of future economic benefits that could flow to SacOil as a result of the Disposal. The Group Interim Results for the six months ended 31 August 2011 will be released on or about Monday, 14 November 2011. The information contained in this announcement has not been reviewed or reported on by the Group's auditors.
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[SAC] For education purposes.. 24 November 2011 Johannesburg FURTHER CAUTIONARY ANNOUNCEMENT (JSE) In compliance with JSE Limited ("JSE") Listings Requirement 3.9 and with reference to the further cautionary announcement published on Thursday, 13 October 2011 on the Stock Exchange News Service of the JSE and on the Regulatory News Service of the London Stock Exchange, SacOil shareholders ("Shareholders") are advised that the Company is still in the process of considering various proposals and potential transactions, which if successfully concluded, may have a material effect on the price of SacOil ordinary shares ("Shares"). Accordingly, Shareholders are advised to continue to exercise caution when dealing in their Shares until a further announcement is made in this regard. JSE Sponsor The Standard Bank of South Africa Limited
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[SAC] http://www.sacoilholdings.com/im/media-display.php?Id=2011/25nov2011
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[SAC] Read the detailed notes to these accounts as they put meat on the bones. http://www.sacoilholdings.com/im/files/r/sacoil-interim-aug2011-en.pdf
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[SAC] Courtesy of GECR. "SacOil Holdings is an independent African upstream oil and gas business. It has been predicted that by 2020 Africa will account for 20% of world oil production. In recent years there has been a scramble for African oil and gas licences following some sensational discoveries. SacOil is led by a Board that has an enviable network in the continent and that are used to doing business in Africa coupled with a real depth of experience in the oil and gas industry. The team is continuously evaluating and assessing acquisition opportunities to move closer to booking reserves, production and cash flow generation. SacOil offers an exciting combination of high impact exploration in Block III plus the real possibility of early production from Nigeria. Our recommendation is speculative buy. Block III, Democratic Republic of the Congo Block III occupies a large acreage in the Albertine Graben which forms part of the Eastern African Rift System where modern era exploration began only in 1999. Block III lies on trend with Tullow’s Kingfisher (200MMbbl) and the Giraffe-Buffalo (300MMbbl) discoveries, just the other side of the border in Uganda. This is a high impact exploration project where SacOil will be fully funded by Total until after a commercial reserve has been proved. Early oil production from Nigeria Indigenisation policies of the Nigerian Government, coupled with minimum work commitments, are bringing licences back onto the market that have not been looked at for the last 3-5 years. SacOil has been able to gain a sensible stakes in the OPL 233 and OPL 281 licences. The priority is OPL 233 where investors will not have long to wait as a seismic survey which is due to be shot shortly. The Board has pointed out that the commencement of an extended well test, the booking of reserves and the generation of cash flow may occur before the end of 2013. Valuation Our sum-of-the-parts valuation comes out at $326.6 million, which even after being risked by 50% would equate to a 11p per share target price on a fully diluted basis. No value was included for the profitable manganese operations which are now seen to be a non-core business and are likely to be disposed of in the future. It has to be pointed out that the shares have traded well above our target price during the past eighteen months."....
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Announces that it is in advanced negotiations on an exclusive basis to acquire a Southern African focussed petroleum product related wholesaler (the "Proposed Acquisition"). The board of SacOil believes that the Proposed Acquisition is fully in keeping with the Company's stated strategy of focussing on cash generating opportunities that expand SacOil's offering across the oil and gas value chain. If concluded, the Proposed Acquisition would significantly increase SacOil's turnover and provide the Company with a foothold in the downstream oil and gas market which compliments its existing upstream assets such as the producing Lagia field in Egypt. Paragraph 3.9 of the JSE Listing Requirement - Cautionary Announcement In terms of paragraph 3.9 of the JSE Listing Requirements, immediately after an issuer acquires knowledge of any material price sensitive information and the necessary degree of confidentiality of such information cannot be maintained, an issuer must publish a cautionary announcement. As such, shareholders are advised that the Proposed Acquisition, if successfully concluded, may have a material effect on the price of the Company's securities. There can be no guarantee however that the Proposed Acquisition will conclude and further updates will be made in due course. Accordingly, shareholders are advised to exercise caution when dealing in the Company's securities until a full announcement is made. Suspension of Trading on AIM If concluded, the Proposed Acquisition would be classified as a reverse takeover pursuant to Rule 14 of the AIM Rules for Companies. Accordingly, the Company's shares will be suspended from trading on the AIM Market of the London Stock Exchange at 7.30a.m. today until such time as either an admission document setting out details of the Proposed Acquisition is published or confirmation is given that the Proposed Acquisition is not proceeding. The Company's share will however continue to trade on the JSE.