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Update on the Company’s interests in OPL 281


(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 the Company’s interests in OPL 281

The Company refers its shareholders to previous communication relating to its contractual interests in relation to the Oil Prospecting Licence 281 (“OPL 281”), which is located onshore the Federal Republic of Nigeria (“Nigeria”).

On 06 October 2010 SacOil through its wholly-owned subsidiary SacOil 281 Nigeria Limited (“SacOil 281”) concluded a farm-in agreement with EER 281 Nigeria Limited (“EER 281”) and Transnational Corporation of Nigeria PLC (“Transcorp”). In terms of the farm-in agreement, SacOil 281 will acquire from, and be assigned a 20% interest in the OPL 281 concession by Transcorp. The assignment to SacOil 281 of the participating interest in OPL 281 requires the prior approval from the Government of Nigeria. A pre-requisite to seeking such approval has been for Transcorp to have entered into a production sharing contract (“PSC”) for OPL 281 with the Nigerian National Petroleum Corporation (“NNPC”).

Transcorp has informed SacOil that the NNPC has signed the PSC for OPL 281. NNPC’s signing of the PSC for OPL 281 now clears the way for Transcorp and SacOil 281 to prepare and to lodge an application to seek the approval from the Government of Nigeria for Transcorp to assign a 20% participating interest to SacOil 281.

With the signing of the PSC, Transcorp, as operator of OPL281, will now proceed to execute the PSC commitments and work programme to appraise the contingent resources estimated at approximately 100 million barrels of oil equivalent.

The Company will now liaise with Transcorp in order to pursue the preparation of the application to seek Government’s approval, as well as to attend to the lodging of same with the appropriate authorities in Nigeria. Shareholders will be kept apprised of any further material developments in this regard.


09 May 2014


JSE Sponsor

Nedbank Capital

For further information please contact:

finnCap Limited (Nominated Adviser and Broker)

+44 (0) 20 7220 0500

Matthew Robinson / Christopher Raggett

First Energy Capital (Joint Broker UK)

Majid Shafiq

Travis Inlow

+44 (0) 20 7448 0200

Pelham Bell Pottinger (UK)

Philip Dennis

+44 (0) 20 7861 3919

Nick Lambert

+44 (0) 20 7861 3936

Rollo Crichton-Stuart

+44 (0) 20 7861 3918


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