TheNigerianVoice Online Radio Center

SACOIL HOLDING GET APPROVAL TO LIST ON LONDON EXCHANGE

By NBF News
Listen to article

Sacoil Holding Limited (SCL) has disclosed that it has received approval to list on the London Stock Exchange's Alternative Investment Market. advanced, poised for its highest closing level in almost 14 years, after saying/

The company's stock rose on Tuesday as much as 7 cents, or 2.7 percent, to 2.64 rand. It traded up 2 cents, or 0.8 percent, at 2.59 rand as of 11 a.m. in Johannesburg. A close at that level would be the highest since May 1997.

The company, an oil and natural gas explorer developing wells in Nigeria and the Democratic Republic of the Congo, said it will not be raising any new capital with the listing in April. SacOil has a market value of 1.5 billion rand ($218 million).

It will be recalled recently, Transnational Corporation of Nigeria (TransCorp), entered into a joint venture agreement with South Africa's SacOil Holdings Limited, in collaboration with Energy Equity Resources Limited (EER).

SacOil was expected to pay a total of $30 million (about N4.5 billion) as fees in several tranches for OPL 281 upon attainment of certain milestones in the joint venture that will carry 100 per cent of the minimum work programme cost.

The oil bloc (OPL 281) was awarded to Transcorp during the Federal Government's mini bid round in 2006, for $8.75 million of $30 million signature bonus.

The outstanding signature bonus has now been paid by SacOil, on behalf of the Joint Venture and Transcorp.

The OPL 281 is one of the two oil blocs won by Transcorp. Both have an estimated reserve of over 300 million barrels of Oil, and over 100 billion cubic feet of gas.

The joint venture, it was learnt, shall acquire 40 per cent of Transcorp's 100 per cent Participating Interest in the PSC for OPL 281 and SacOil's direct interest in OPL281 would be 20 per cent. The direct interest will be held directly through a wholly owned Nigerian subsidiary.

A source close to the agreement said that SacOil hopes to fund the investment from the inflow of its R70 million (about N14.7 billion) it received on February 17, 2011 from the South African government- owned Public Investment Corporation (PIC).

The PIC, which manages assets in excess of R910.9 billion making it one of the largest investment managers in Africa, recently acquired 7.4 per cent stake or 46.7 million new shares of SacOil at R1.50 each.

The SacOil has paid an initial fee of $12.5 million for its stake in the field while Transcorp would receive another $7.5 illion from the JVC after approvals are granted.The balance of $12.5 million fee will be received when oil is struck.

SacOil will partner EER 281 Nigeria Limited, a wholly owned Nigerian subsidiary of EER, which has also executed the same farm-in agreement to acquire an additional 20 per cent participating interest in OPL 281 and under the OPL 281 PSC, with Transcorp retaining the remaining 60 per cent.

The Joint Venture agreement followed an independent competent person report by TRACS International which analysed discovery contingent resources of 250 MMBOE.

Transcorp has said that is has duly complied with all the Nigerian Stock Exchange's listings requirements and, accordingly, no further documentation or shareholder approval is required for the implementation of the acquisition which took effect last Monday.