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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anders, it is looking good for sure,some talk over on lse of director buys maybe?

davy, could be director buying i guess we may have to wait for next holdings rns,
but they do already have a fair whack at 18p and 19p which is of note.

anders....they have just moved the spread out to 4p-4.75p i think they are
short of shares,a good finish to day possible :-)

anders, :-)

I think there could be some delayed larger trades not showing today,very strange
they moved the ask out to 4.75p and kept the bid at 4p,it could suddenly move
again anytime.

anders, in an RNS in august they stated that the aeromagnetic survey results on
Block III will be released during Q4 so we may get that anytime.

i'm in albeit for a speculative gamble just the 5k[shares that is] 4.15p.
GLA

Alex

hey robert, nice to see a new face on here :-)

davy,just had a 450k pop up which looks like a delayed trade which i referred to
earlier mate.

anders.....i see these trades as significant mate, the 450.000 trade at 4.25p must
have been a buy as at time of reporting the spread was 4p - 4.50p so was bang
on the midprice and actual sell price at time was 4.075p. So this was a delayed
trade from early on today and incidently there was a 200k buy yesterday at 4.75p
right on full ask and also a number of steady mid 80k trades today and yesterday.

These are either institutional buys or director buys in my opinion and i say that
not least because three market makers have been sitting on a 4p bid price all day
and not moving even while a good steady stream of buys were going through.

Its fair to say that something is going to develop here soon of that i have no doubt.

davy,

I see what you mean,for what its worth i think you are bang on there and those
trades were buys,the biggest clue these were corporate buys was the mm,s
sticking on to the 4p bid all day whilst steady buys continued. And then when
the trades were actually published still no move up or down with the bid price.
I have said quite a few times that some sort of development is going on at SAC
at the moment and i have a gut instinct that its connected with the price controls.

What could it be ? its either a new aquisition that involves equity,or ENCHA have
taken a further big stake in the company around the 4.5p level. These are my own
thoughts and opinions but based on knowledge of this company and management.

Today's volume (total) equates to @60k.

Thankyou skinny :-) if you look at the chart you posted there are signs of a
chart reversal taking place and increasing volumes.

anders i just found an interesting post on another forum on sacoils assets and
paste here.

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The deal with Total could ultimately be worth US$300 million to SacOil, which will receive US$61.5 million staged over the next five years, of which US$7.5 million has already been paid.

It also leaves the company with a 12.5 per cent interest ( free carry ) in the licence.

As important, the group receives a free carry on all the exploration work right up to the final investment decision phase in other words the point at which it is decided whether Block III is commercially viable and bank debt financeable.

In Nigeria sacoil has stakes in licences OPL 233 and 281, which have already seen oil discoveries and where there is obvious scope to add value by turning a contingent resource into reserves.,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 plus Apoi field, Green points out.

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 in April or May 2013, the GECR analyst adds.

In the DRC SacOil owns a 3,177 kilometre licence area known simply Block III.

It is in the Albetine Graben, the source of Tullow Oils (LON:TLW) Kingfisher and Giraffe-Buffalo discoveries over the border in Uganda.

To date the real excitement in this region has been on the Ugandan side of the border where discoveries have produced well flow rates anywhere from 350 to 13,000 barrels of oil a day, Green says.

In this region discoveries made to date add up to over 800 million barrels of P50 contingent Resources and these have come from two distinct types of oil plays which are either escarpment/near-shore plays such as Kingfisher or Victoria Nile Delta plays, which includes the biggest find so far at Giraffe-Buffalo.

Thanks for that Maxo, a very good read !

maxo, i like this bit from your post

"The deal with Total could ultimately be worth US$300 million to SacOil, which will receive US$61.5 million staged over the next five years, of which US$7.5 million has already been paid.

It also leaves the company with a 12.5 per cent interest ( free carry ) in the licence".

morning guys, interesting post from maxo there and shows some big numbers!

Morning anders, level 2 is looking good today and think it could move back up on
even lowish volume,its 3 v 1 at moment with SCAP , LIBC , WINS still on the bid !

Hi davy, yes mate and just checked and found only 20k of shares available
without negotiation at moment - something cooking ?

Noticed that mate,just tried two different brokers and one had 20k available
and the other only 10k of shares.

davy i could get 30k on TDW just now but no more