17 Sep 2015 08:00
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")
Installation of steam facilities and the drilling of up to five additional wells - Lagia Oil Field
SacOil Holdings Limited, through its subsidiary Mena International Petroleum Company Limited ("Mena"), is pleased to announce the commencement of phase 2 of the field development operations at its 100% owned Lagia oil field in Sinai, onshore Egypt.
This second phase includes the installation of steam facilities for a thermal recovery process on the existing production wells and the drilling of a minimum of 5 additional thermal wells with the intent of further enhancing existing production and the recovery of oil from the field.
SacOil procured a steam generator earlier this year and is proud to confirm that the generator arrived on site on 4 September 2015. Commissioning and operational testing is currently under way and the Company is to commence full-scale steaming by the end of September 2015.
Initial steaming will focus on the existing production wells, which are currently producing oil from cold flow only. It is anticipated that each well will be steamed and allowed to soak for a number of days before starting production. The commencement of phase 2 also coincides with the drilling of a minimum of 5 additional wells. The drilling of Lagia 11 to 15 will start in mid-October 2015. Aligning the steaming process with the additional drilling programme presents an ideal scenario to optimise the use of on-site resources and test the potential upside of the field, which is in line with the Company's strategy to fast-track the development of the Lagia oil field to production of above 1 000 bbls/d.
More details on the results of the second phase of development, as well as progress on the current operations, will be announced in due course.
JSE Sponsor
PSG Capital Proprietary Limited
17 September 2015
For further information please contact:
SacOil Holdings Limited +27 (0)10 591 2260
Bradley Cerff
finnCap Limited (Nominated Adviser and +44 (0) 20 72200500
broker)
Christopher Raggett and James Thompson
FirstEnergy Capital (Financial Adviser +44 (0) 20 7448 0200
and Joint Broker UK)
Hugh Sanderson / David van Erp
Instinctif Partners London (UK Investor +44 (0)20 7457 2020
Relations)
David Simonson / Anca Spiridon
Instinctif Partners Johannesburg (SA +27 (0)11 447 3030
Investor Relations)
Nicholas Williams / Tshepo Mophiring