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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Looks good mate, is it possible to have a JSE chart on here too ??? pretty please

davyboy i will try and get a jse chart up but cant promise will work.

Thanks much appreciated anders

Should be ok mate so should be up over weekend

thanks again, good looking thread you have here and good to see some research on
the assets and blocks.

I will be adding some more good stuff here over weekend :-)

rampety, rampety ramp!

Just seen your new thread anders, great stuff !

Was on another forum earlier and there is quite a buzz around sacoil at the
moment,some good stuff discussed including a potential farm in on an east
african block.One also said that some survey results are due on block III in
the DRC as stated in an RNS.

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 ?