20 May 2015 07:00
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")
Withdrawal of participation in Oil Prospecting Licence 233
SacOil shareholders ("Shareholders") are advised that, in line with SacOil's strategy to focus on proven resources as a basis for growth, the Company has embarked on a process of balancing and rationalising its portfolio of assets. The aim of the rationalisation is to restructure the Company's future capital requirements - focusing on cash generative assets and low risk exploration assets.
Pursuant to the above strategy, SacOil has terminated its joint venture with Nigdel United Oil Company ("Nigdel") of Nigeria, and consequently its participation in Oil Prospecting Licence ("OPL") 233.
Accordingly, SacOil has the right to be refunded by Nigdel for all costs expensed to date on OPL 233. Consequently, SacOil has no future commitments and obligations associated with the appraisal of OPL 233. Further announcements relating to the details of the Company's withdrawal from OPL 233 will be made in due course.
Dr Thabo Kgogo, CEO of SacOil, commented, "The termination of the joint venture in respect of OPL 233 is in line with the strategy communicated to shareholders previously; improves the Company's financial position and will reduce future financial exposure emanating from such higher risk assets.
"With the expected return of capital from OPL 233 and OPL 281, combined with SacOil's existing cash resources, the Company will be in a far stronger position to pursue its strategy of increasing production and focusing on cash generative assets".
JSE Sponsor
PSG Capital Proprietary Limited
20 May 2015
For further information please contact:
SacOil Holdings Limited +27 (0)10 591 2260
finnCap Limited (Nominated Adviser and +44 (0) 20 7220 0500
Broker)
Christopher Raggett
FirstEnergy Capital (Financial Adviser +44 (0) 20 7448 0200
and Joint Broker UK)
Travis Inlow
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