Website: http://www.sacoilholdings.com/index.php






CEO Interview:




Profile:

SacOil, as a South African based, operated and controlled company has a competitive advantage at the point of entry in the highly attractive African oil and gas space.

SacOil is dual listed on the JSE (Share code: SCL) and AIM (Share code: SAC).

SacOils remit is to build a Pan-African upstream oil and gas business with a balanced portfolio of assets in Africa.

SacOil has a highly experienced board with significant oil and gas industry as well as deal making expertise.

SacOils assets are in all phases of the upstream cycle exploration, appraisal and near production and are currently in the Democratic Republic of the Congo and Nigeria.

SacOil will continue with its stated strategy of targeting the acquisition of discovered but undeveloped or previously producing but now shut, near-term producing and production upstream oil and gas assets on the African continent.

SacOil intends to initially develop all their deposits in consortiums with global major oil & gas companies with extensive experience in Africa but in time looks to establish itself as a fully-fledged exploration and production company with in house capacity.

SacOils interests are currently in Nigeria, the DRC and South Africa.


Assets:

Democratic Republic of Congo ( DRC ) - Block III ( Working Interest 12.5% )

The exploration property rights are located in the DRC Lake Albert area close to the Uganda and DRC border. The area is part of the Rift Valley and is known as the Albertine Graben area which is a proven petroleum discovery region. Bituminous shales are known to be present and are generally mature. This being evidenced by numerous oil seeps and recent positive drill results in adjacent oil concessions.
DRC Block 3 Albertine Graben

The Albertine Graben is part of the East African Rift System (Western Branch) which is a relatively young exploration province with the fi rst exploration starting as recent as 1999. To date over 800 million barrels of recoverable oil resources have been discovered with two fields namely Kingfisher (200 million barrels) and Giraffe-Buffalo (300 million barrels) being the biggest discoveries. The total resource base estimated at 2 G barrels. To date the majority of the exploration has been on the Uganda side but the DRC concessions are considered to be highly prospective with Block 3 being close to recent significant discoveries.
Ownership

SacOil PTY Limited has an 85% participating interest in Block 3 with SacOil Holdings having a 50% stake which results in an overall 42.5% participating interest. The National Oil Company of the DRC holds a 15% interest.
Technical

The licence area is 3,177 square kilometres situated mostly in low land (Semliki river plain) flanked by rift margins and is on trend from recent discoveries in Uganda. The areas have been identified as Oil and Gas prone with the main source kitchen believed to be below deeper parts of Lake Albert. It is considered possible that a smaller kitchen is located in the southern part of Block 3. Kibuku oil seeps suggest that oil is likely to be found in the northern part of the block.
Work programme

The five year programme will be divided into five sub-periods and the initial work will include field studies as well as geochemical studies. Following this will be the acquisition, processing and interpretation of a minimum of 4,000 square kilometres of 2D seismic data. If the results are satisfactory then a drilling programme will follow with at least two exploration wells being drilled.
Competent Persons report

A Competent Persons Report on Block III has been prepared according to the rules of AIM, including the AIM Giuidance Note for Mining, Oil and Gas Companies, June 2009.




LATEST IN DRC:

DRC - Block III ( Working Interest 12.5% )

After the successful farm out deal to ToTal, SacOil is fully carried through to commercial development on Block III which has target prospective resources of 513 million barrels.ToTal has paid $7.5m net cash, and a $54m contingent bonus payment to the company and the project can now be fastracked ahead of earlier estimates. Analyst notes suggest the DRC assets are on trends with recent discoveries in the Lake Albert Basin.

NIGERIA:

Block OPL 281: ( Working Interest 20% )

The production mission is currently being addressed by acquisition of Nigerian near production assets acquired in Joint Venture with EER a Nigerian Oil and Investment and Consulting company. SacOil will have a 50% benefit and funding obligation in all EER joint venture acquisitions.The background and dealOPL is an ex Shell permit having been drilled between 1967 and 1970. The initial award was to a company named Binergy Limited who subsequently had their licence revoked. The block was rewarded to Transcorp in 2006 as part of a Mini Bid Round. Transcorp have paid the majority of the $30 million signing bonus and will cede a 40% equity stake to SacOil on condition the licence is reinstated to Transcorp by the Federal Government of Nigeria.Terms of the Farm-in:EER is the technical partner who will operate the asset on behalf of the JV and TranscorpJV will pay $20 million upon Minister of Petroleum consent for dealJV will pay $7.5 million upon commercial production declarationJV will pay $5 million within 90 days of first oil being producedTechnicaLDiscovery wells Obote-1 and Ekoro-1 drilled between 1967-1970. The terrain is an onshore swamp location and the entire block has been covered by Shell with 3D Seismic during 1991/2. The competent persons report indicates Contingent Resources of 250 MMBOE with further potential in two additional prospects and deeper zones. The hydrocarbons in the two wells were discovered between 2,400 and 4,000 metres with Obote-1 encountering 4 hydrocarbon levels and Ekoro-1 intersecting 8 hydrocarbon levels between 8,260ft and 10,761ft.

OPL 281 was evaluated by TRACS to contain 99.2mmboe of gross reserves with an expected initial gross production rate of 15 kbpd. Peak potential production rate could reach 30 kbpd, when it could deliver up to $200m in revenues. With relatively low running cost and a total capex need of $50m net to SacOil, the field could generate significant cash flows in excess of $40-45m pa by 2015/16.






Block OPL 233: ( Working Interest 20% )

Background: OPL 233 is an offshore oil block previously operated by Chevron. It is located in the shallow Marine central Delta region offshore Nigeria. The block encompasses an area of approximately 126 square kilometres. The water depths range from 10 to 30 feet and the block is adjacently north of the Apoi oil field. The block was awarded to NIGDEL United during the Mini-Bid Round in 2006. Current equity participation is NIGDEL 60%, EER 20% and SacOil 20%.

Olobia-1 well indicates 103ft of net oil and 54ft of gas and condensates across
five reservoir zones in the well. Based on an evaluation by TRACS it is estimated
that the 2C Best estimate on the unrisked contingent resources is 19mmbbl
(3.8mmbbl net to SacOil). Therefore if a second well, Olobia-2, is drilled and tested
the reserves can immediately be booked and classified as a producible reserve.
In OPL 233 there is only one field, the Olobia Oil and Gas field, which has been
conceptually developed and worked up to a point that can be drilled.

Exploration upside: EER/SacOil have mapped additional leads and prospects using
the existing seismic data and estimate an exploration upside, with prospective
resources in the order of 300mmboe, which will be further evaluated with an OBC
(Ocean Bottom Cable) survey.




South Africa:

Greenhills Plant - Manganese

The company manufactures manganese, sulphate powder, manganese sulphate solution and manganese oxide at its plant in Mpumalanga better known as the Greenhills plant. The main source of income from the plant is from the sale of manganese sulphate, manganese hydrate and manganese oxide. The average production of the plant is 300 tonnes per month of manganese sulphate and 360 tonnes of manganese oxides which approximately 230 tonnes are used to produce manganese sulphate powder. This business is not considered to be a core asset and will be probably disposed of in the short term future.

Latest Oil Barrel Presentation:




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davy, that is correct about the block III surveys,in the last operational update on
block III in august RNS it stated the following:

"The work planned and agreed on Block III includes an airborne gravity and magnetic survey over the licence area, the results of which are expected in Q4 of 2011. This will form the basis for the next stage of the programme which will include the acquisition of a targeted 2D seismic survey. The performance of the work programme is subject to first obtaining the relevant ministerial authorisation.



Bradley Cerff, Vice President Commercial of SacOil commented today:



"I am pleased with the progress we are making at Block III with our partners Total. Work will shortly commence on carrying out the preliminary aeromagnetic surveys which is the precursor to targeted seismic surveys. The Block III project in the DRC has an exceptional postcode in terms of recent neighbouring discoveries in Uganda. We look forward to updating shareholders on further work programmes as we move towards drilling a maiden well on Block III during the first phase of the exploration period."

Location of Block III relative to nearby large discoveries.

anders as you can see from that map the discoveries have been moving south
from the original buffalo and giraffe finds,total must be mighty confident of at
least moderate success to pay sacoil $63M for 60% of the block.

hello everyone i have been looking at this site this week and found this thread
most helpful and informative.thanks

Is that right you can have this stock in an ISA ?

welcome maxo,nice to have a new face on here on this new thread,yes you can
hold sacoil in an Isa as its dual listed on AIM / JSE.

On 31 March 2011, DIG settled a loan from SacOil amounting to US$1.4m (0.9m) out of its 50% share of the initial consideration. The loan advanced to DIG by SacOil was in terms of a loan agreement and related to signature bonuses paid by SacOil, on behalf of DIG, directly to the DRC Government on Block III.

Is this a bribe?

Need to look at the threats of a SW)T analysis for any company involved in the DRC:

Members of the security forces also continued to abuse and threaten journalists,
contributing to a decline in freedom of the press. Government corruption remained
pervasive (United States Department of State (11 March 2010) 2009 Country Reports
on Human Rights Practices Democratic Republic of Congo)

chuckles, The DRC is no different to any number of african countries in the way
they conduct their business,in sacoil case they have a totally de-risked share
in a highly prospective acreage operated by ToTal ( 12.5% WI and $63M cash
net to sacoil ).

DRC President Joseph Kabila's re-election is actually a good development as he
has steadily turning the DRC into a place where business can be done safely.

PS - Sacoil have two blocks in nigeria which look rather tasty too :-)

Good Luck

ANDERS,

Thanks very much for the info on ISA,s

You are welcome Maxo, are you a new holder here ?

Have been a holder for a while now first on JSE and recently on AIM,i am a south
african national living in the uk now.Still go back on a regular basis though as have
family in durban.

Welcome to the forum maxo,nice to have an african point of view on here so
hope you can be a contributor to the forum.

Anders

evening guys,and hello maxo

Thanks very much for the warm welcome fellas and by the way i want these held
in an ISA so am here for the long term.

Really Maxo, you have these in an ISA?

So you must have forgotten you held them in an ISA when you asked this question?

Maxo - 10 Dec 2011 21:02 - 20 of 30
Is that right you can have this stock in an ISA ?

Now that's LMFAO!!

This has got to be the worst most stupid ramp I can ever remember, but it's good entertainment if nothing else. For the unwary SAC is being pumped on a number of forums, all using logons that have either recently been registered or have been pretty much dormant for quite a while.

It's a shame really because on the surface SAC seem to have something going for them.

ptholden, are you for real lol ? i have just looked back at what maxo said and
he asked if the stock can be held in an ISA ? to which the answer is yes as its
dual listed on both Aim and Jse . In his last post he stated he wants to hold
them in an Isa so here for long term. So lets put two and two together shall
we....after finding out he can ISA them he then says he intends to do just that !

Can you please get your facts straight before clogging up my thread....if you are
not a holder here holden i suggest you stick to your own stocks.

Maxo, i dont know if you have seen the recent report by uk analyst on sacoil
but incase you have not i post below,well worth a read through.


UK - ANALYST

SacOil Holdings - African oil play with the promise of early production - Reiterate recommendation of Speculative Buy at 4.125p with a 27p target price

Dual-listed SacOil is an independent African upstream oil and gas business. The company offers investors the promise of early production and cash flow as well as the chance to add substantial value by moving opportunities up the value chain. The recently announced interim results served to remind the market of the African oil plays impressive portfolio. The focus of attention over the past six months has been on the blue sky opportunity in Block III in the highly prospective Albertine Basin the Democratic Republic of Congo (DRC) which has been neatly de-risked following a farm-in by Total. At the same time the team has also has been fast tracking progressing the OPL 233 and OPL 281 concession blocks in Nigeria towards early production and revenues. In October, the company announced a $25 million Standby Equity Distribution Agreement with Yorkville which followed a R75 million (5.9 million) funding at R0.67 (5.28p) by Timtex Investments which should help provide the funds to accelerate these projects.

Interim results for the six months to 31st August 2011 showed that revenues from the Greenhills manganese operation increased by 17% to R19.3 million. Pre-tax profit came out at R19.15 million compared to a loss of R6.95 million at the halfway stage last year due to principally to receipts and fair value adjustments. In this period, SacOil through its 50%-owned DRC vehicle Semliki Energy SPRL (other 50% holder is DIG Oil Proprietary Limited) successfully concluded the farm-out and transfer of 60% stake in Block III to Total. In this move, SacOil gained cash of $7.5 million, a future contingent cash bonus of $54.0 million payable in two tranches, full carry on exploration costs of at least $35 million until the final investment decision and also the settlement of a $1.4 million loan provided to DIG. Importantly, SacOil has maintained representation on the management committee of Block III in which it now has a 12.5% effective stake that is fully funded.

Block III in the DRC 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. Since then around 800MMbbls of recoverable oil resources have been discovered, which includes Tullows Kingfisher (200MMbbl) and the Giraffe-Buffalo (300MMbbl) discoveries, just the other side of the border in Uganda. On trend with Tullows discoveries lies Block III which represents a high risk exploration project where SacOil will be fully funded by Total until after a commercial reserve has been proved. Totals first plans have been for a gravity magnetic survey to outline the basin edges and to understand the workings of the petroleum system in that part of the prolific Albertine Graben. Next year will see the acquisition of seismic data to be followed by the drilling of two exploration wells, one either at the end of 2012 or beginning of 2013, followed by a second well in 2013. Under the term of the farm-in deal Total is required not only meet the work obligations on Block III but to reach a final investment decision by 31 March 2014.

In Nigeria, the company has been buying into projects at what would appear to be a 70% 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 Q1 2012 with an appraisal well planned for Q4 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 by Q2 2013.

The prediction is 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. 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 1990s 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 production companies which includes being President of Gulf Keystone Petroleum and a Non-Executive Director of Matra Petroleum.

The business model of this AIM and JSE-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 quarter of that price and that begs the attention of serious investors. We initiate our coverage on the stock with a Speculative Buy recommendation and with a target price of 27p.

http://uk-analyst.com/shop/page-advice/action-advertorial.show/id-130015105

Morning Anders, could be the start of an exciting week here mate :-)

Morning mate,

Some good early trades coming through