Withdrawal of Cautionary Announcement
01 Apr 2015
SACOIL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
JSE Share Code: SCL AIM Share Code: SAC
(“SacOil” or “the Company”)
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Termination of participation in Oil Prospecting Licence 281
In compliance with JSE Limited (“JSE”) Listings Requirement 3.9, an issuer who has published a cautionary announcement must provide updates thereon in the required manner and within the time limits prescribed.
With reference to the cautionary announcements, the last of which was published on 16 March 2015 on the Stock Exchange News Service of the JSE and on the Regulatory News Service of the London Stock Exchange, SacOil shareholders (“Shareholders”) areadvised that, in line with SacOil’s strategy to focus on proven resources as a basis for growth, the Company has embarked on a process of balancing and rationalising its portfolio of assets. The aim of the rationalisation is to restructure the Company’s future capital requirements and focus on cash generative assets and low risk exploration assets.
Pursuant to the above strategy, SacOil has terminated its participation with Transnational Corporation of Nigeria Plc (“Transcorp”), the operator of Oil Prospecting Licence (“OPL”) 281.
SacOil paid $12.5 million towards farm-in fees on 28 February 2011, which contractually will be refunded with interest byTranscorp. In addition, SacOil will not have any future commitments and obligations associated with the appraisal of OPL 281. As reported in our recent financial statements, the farm-in fee to Transcorp and the transaction fee payable to Energy Equity Resources Norway Limited of US$12 million and US$2.5 million respectively will not be due and payable.
Dr Thabo Kgogo, CEO of SacOil, commented, “The objective of the rationalisation and termination of the OPL 281 contract with Transcorp is to restructure the Company’s capital needs, reduce future financial exposure and focus on cash generative assets.
“We are focused on increasing production in our low cost onshore asset in Egypt while we assess additional options for increasing value for our shareholders.”
Accordingly, shareholders are advised that caution is no longer required to be exercised when dealing in the Company’s securities.
PSG Capital Proprietary Limited
1 April 2015
For further information please contact:
SacOil Holdings Limited
+27 (0)11 575 7232
finnCap Limited (Nominated Adviser and Broker)
+44 (0) 20 7220 0500
FirstEnergy Capital (Financial Adviser and Joint Broker UK)
+44 (0) 20 7448 0200
Instinctif Partners London (UK Investor Relations)
David Simonson / Anca Spiridon
+44 (0)20 7457 2020
Instinctif Partners Johannesburg (SA Investor Relations)
Nicholas Williams / Tshepo Mophiring
+27 (0)11 447 3030