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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hi everyone i have been reading this thread with some interest..looks a great little punt to me and the deal they have with total france looks a cracker

welcome bob and yes the deal they done with ToTal equates to $63M net to sacoil
( $54M to come ) and sacoil retains a 12.5% WI on block III and a seat on the
management commitee.This was from a tiny initial outlay by SAC.

GOOD BUSINESS to say the least :-)

bob you may like to take a look at this recent uk analyst coverage as it covers
very well the current position.



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

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

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.

thankyou for that davy

bob, there is further info in the recent interims on block III deal and cash position
which is very healthy.



Half Yearly 2011 Financial Results -14 November 2011

AIM and JSE listed - SacOil Holdings Limited, the African independent upstream oil and gas company, is pleased to announce its half yearly financial results for the six months ended 31 August 2011.

HIGHLIGHTS:

Operational / Management / Corporate

The recognition of the R238.1 (GBP20.6) million is in accordance with International Accounting Standard 37: Contingent Assets and Contingent Liabilities and is based on additional information available, at the time of this release, to the management of SacOil in relation to the probability of future economic benefits that could flow to SacOil as a result of the Disposal. The Group Interim Results for the six months ended 31 August 2011 will be released on or about Monday, 14 November 2011. The information contained in this announcement has not been reviewed or reported on by the Group`s auditors.

*Successful farmout of a 60% interest in Block III to Total E&P RDC ("Total") ("Block III Disposal") for: US$7.5m ( 4.6m) cash payment received net to SacOil

*US$54m ( 33.02m) contingent bonus paymentnet to SacOil

*Full carry on exploration costs of at least US$35m ( 21.4m) to final investment decision

*Strengthened main board, with the appointments of John Bentley and James William (Bill) Guest as Independent Non-Executive Directors.

*Strengthened management team with the appointment of Bradley Cerff as Vice-President.

*Successful admission to AIM

Financial:

**US$7.5m ( 4.6m) cash received and further potential proceeds of US$54m (33.02m) in relation to the Block III Disposal (net to SacOil)

**US$10.6m cash ( 6.5m) raised through equity

**Headline earnings up 657%

**Tangible Net Asset Value up 379%

**Greenhills plant net profit up 11%

Commenting, Robin Vela, CEO, said:

"The focus over the last six months has been on managing the Company's exposure to the high impact exploration assets in Block III in the highly prospective Albertine Basin, whilst retaining significant potential upside for shareholders. Our attention has also been on procuring funding in order to de-risk and fast track the work program obligations of our asset portfolio and progressing towards early production and revenues from our oil concession blocks, OPL 233 and OPL 281, in Nigeria. We successfully did this through the farm-out to Total and the recently announced Standby Equity Distribution Agreement. Combined, this puts us in a good position to fast track and develop our asset position and opportunities and we look forward to the next six months of the financial year with added confidence."

anders, the mm,s on here moved it up this morning to 4.75p-5p spread briefly on
around 700k volume,there is a clue here that their stock levels are not good IMO

davy i think you may be right on that one.

anders good evening, was not able to watch the stock today much today but
looks like it spiked up early then fell back level ??

Evening maxo,

Yes it moved up then moved back again today but looking at the trades they were
mostly buys again of roughly 7-1,so in my opinion this stock is still being controlled
tightly.We can only assume that something good is going to kick off here as otherwise
the mm,s would be spiking this up and selling on higher ( something corporate is going
on IMO ).

Anders the only thing i can think of is that we are in a " close period " for some
sort of deal or development going on behind the scenes.

Morning guys

Morning davy, hope all is well mate :-)

Will be doing another top up here today with some profits banked elsewhere!

Some nice steady buys again this morning and looks like it could tick up

Morning anders just heard some chatter on lse that directors could be buying
here,and reference made to those steady 80k buys we seen last few days at
full ask. Thoughts mate ????

432k of trades today so far - @16k total.

Guys just bought another batch :-)

skinny, now 721k of trades and no doubt some on plus too

3 trades on plus - total 40k or @1600.

skinny, i assume you not a holder here ? i wouldnt mind starting a sweepstake
with you on sacoil SP by end of march 2012.

davy we now have three mm,s moved on the bid price and another set to join
them,looks interesting and some fair size trades today so far.