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Update on OPL 233, Issue of Shares for Cash and Further Cautionary Announcement

(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
JSE share code: SCL
AIM share code: SAC
ISIN: ZAE000127460
(“SacOil” or the “Company”)

Update on Oil Concession OPL 233;

Issue of Shares for Cash and

Further Cautionary Announcement

1. Update on oil concession OPL 233

Further to SacOil successfully posting a US$25 million Performance Bond (the “Bond”) as part of fulfilling its obligations under the Joint Venture and Production Sharing Agreements (“PSC”), the OPL 233 joint venture partners have completed the interpretation and evaluation of the existing seismic and well data on the block. In addition, the modelling and planning of a 3D Ocean Bottom Cable (“OBC”) survey was completed and finalised in Q2 2012. In preparation for the 3D seismic acquisition, the joint venture partners are now finalising the seismic contractor assessments and engagements for the acquisition. Immediately after the contract award, which is expected to be imminent, acquisition and processing will commence leading to what is anticipated to be the selection of an optimal well location.

The acquisition and processing of the OBC is funded through the cash collateral of US$10 million provided by SacOil as part of the posting of the Bond.

2. Issue of shares for cash

SacOil shareholders (“Shareholders”) are advised that 24,578,863 new SacOil ordinary shares (“Shares”) will be issued to YA Global Masters SPV Limited (“YA”) at a price of R0.34 per Share (the “Issue”), pursuant to the terms of a Standby Equity Distribution Agreement between YA and SacOil and approved by Shareholders in a general meeting on 17 November 2011, raising R8.3 million (approximately US$1 million). The proceeds of the Issue will be used to fund costs in relation to potential transactions.

Application has been made to the JSE Limited (“JSE”) to grant a listing of the Shares and to the London Stock Exchange (“LSE”) for the admission of the Shares to trading on the AIM Market (”AIM”). The listing of the Shares on the JSE and the admission of the Shares to trading on AIM are expected to take place on Tuesday, 10 July 2012. The Shares will rank pari passu in all respects with the Company’s ordinary shares already in issue.

SacOil’s total issued share capital after the Issue will be 918 268 379 ordinary shares.

3. Further cautionary announcement – JSE regulatory requirement

In compliance with the JSE Limited (“JSE”) Listings Requirement 3.9 and with reference to the cautionary announcement dated 2 September 2011 and the further cautionary announcements dated 13 October 2011, 24 November 2011, 10 January 2012, 21 February 2012, 4 April 2012 and 22 May 2012 published on the Stock Exchange News Service of the JSE and on the Regulatory News Service of the LSE, SacOil shareholders (“Shareholders”) are advised that the Company is still in the process of considering specific potential transactions, which if successfully concluded, may have a material effect on the price of SacOil ordinary shares (“Shares”). The delay in reaching a resolution is due to a revised transaction structure, additional parties, and regulatory/ approval processes which are taking longer than initially anticipated.

Accordingly, Shareholders are advised to continue to exercise caution when dealing in their SacOil Shares until a further announcement is made in this regard.

9 July 2012


JSE Sponsor

Nedbank Capital

For further information please contact:

finnCap Limited (Nominated Adviser and Broker)

Matthew Robinson / Christopher Raggett

+44 (0)20 7220 0500

First Energy Capital (Joint Broker UK)

Majid Shafiq/ Travis Inlow

+44 (0) 20 7448 0200

GMP Securities Europe LLP (Joint Broker UK)

James Pope/ Chris Beltgens

+44 (0)20 7647 2800

The Riverbed Agency (SA)

Raphala Mogase

+27 (0) 11 783 7903

Pelham Bell Pottinger (UK)

Philip Dennis

Nick Lambert

Rollo Crichton-Stuart

+44 (0)20 7861 3919

+44 (0)20 7861 3936

+44 (0)20 7861 3918


for news updates



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