23 May 2011 07:00
23 May 2011
SACOIL HOLDINGS LIMITED
CORPORATE UPDATE
("SacOil" or "the Company")
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 Communications (Public Relations UK)
Jos Simson/ Edward Portman
Tel: +44 (0) 20 7920 3150
The Riverbed Agency (Public Relations SA)
Raphala Mogase/Bongiwe Moeli
Tel: +27 (0) 11 783 7903