SacOil has assembled a portfolio of assets in Nigeria and the Democratic Republic of Congo.

High impact exploration acreage in the Democratic Republic of the Congo (DRC) provides an exciting platform for SacOil (LON:SAC), according to finnCap analyst Will Arnstein.

The analyst notes that the DRC assets are on trends with recent discoveries in the Lake Albert Basin.He points out that they have gross resource potential of 512 million barrels and the first exploration well could be drilled as early as 2013.

SacOils exploration costs are covered through a joint venture deal with French major Total, which was agreed earlier this year.

Meanwhile SacOil has farmed into two appraisal-stage projects in Nigeria, though its joint venture with Energy Equity Resources (EER).Arnstein highlights that SacOil is targeting lower risk acreage in Nigeria. He says the area already has existing under or unexploited discoveries and near term production potential. The Nigerian assets give SacOil exposure to 118 million barrels of contingent oil resources, Arnstein added.
The analyst also believes that SacOil will continue to expand its business.
An aggressive acquisition-led growth strategy should see the portfolio continue to grow rapidly as the company seeks to exploit its African identity and key relationships, he said.This upside potential appears overlooked by the market despite its early track record in securing highly prospective acreage.
According to Arnstein SacOil shares are worth 11.7p a share, which is some 180 per cent high than the current price of 3.875p.

The analyst point out that risked assets make up the majority of his valuation. He says that the Nigerian assets contribute 8.1p a share and the DRC asset contribute 2.6p.Additionally there is a penny in the valuation for financial items and an assumed value for the disposal of the groups legacy manganese plant.