South African oil and gas junior SacOil is optimistic that energy major Total could initiate a drilling campaign in 2017 on a resource in the Democratic Republic of Congo (DRC), following positive geophysical exploration results. The French group is the operating partner over the 3 177-km2-licence area, known as Block III, and recently completed the acquisition of 244 km of 2D seismic data over the northern part of the block. The onshore acreage, which lies to south of Lake Albert, in DRC, also forms part of a larger basin, which has been the subject of extensive exploration on the to Uganda side of the border. In fact, Total and others have made significant discoveries in Uganda and the group has signalled its intention to develop multiple oil finds, which could be evacuated through a planned $3.5-billion Uganda-Tanzania export pipeline. SacOil group executive operations, Bradley Cerff, tells Engineering News Online that the JSE-listed company is also heartened by the initial exploration results in Block III and that it is looking forward to the initiation of the future drilling campaign. The licence conditions associated with Block III stipulate that drilling should occur by mid-2018, but Cerff is hopeful that Total could well move ahead during the course of 2017. “We are moving into the nuts-and-bolts phase,†he explains, noting that, over the past six years, the partners have come to grips with the regional geology. “What we need to do now is test the geological model through drilling the first well on the DRC side of the border.†The focus currently is on selecting the best possible geological location for the first well so as to “prove that there is a working petroleum system in that areaâ€. For SacOil, which acquired the block in 2010 and currently holds a 12.5% interest, proving the asset would also be a significant development, particularly following a recent reorganisation of ownership structure, enabling it to directly represent its interest in Block III. Cerff says that, besides the producing Lagia oilfield, in Egypt, the DRC asset is the most advanced in the JSE- and Aim-listed company’s upstream portfolio and central to its ambitions of becoming a pan-African oil and gas company.
Speculative nature of this share is now behind it. SP should start to find value going forward.
I wonder how the second phase of the Lagia Oil field is progressing to up the production to 1000 barrels per day?
Sacoil Holdings Limited with EPIC LON:SAC has had its stock rating noted as ‘Reiterates’ with the recommendation being set at ‘CORPORATE’ this morning by analysts at finnCap. Sacoil Holdings Limited are listed in the Oil & Gas sector within AIM. finnCap have set a target price of 5 GBX on its stock. This indicates the analyst believes there is a potential upside of 262.3% from today’s opening price of 1.38 GBX. Sacoil Holdings Limited has a 1 year high share price of 3.7 GBX while the year low stock price is currently 1 GBX.
I wonder if the company will "park" some of the cash in it's own shares?
There is still a big seller liquidating its position. Once he(they) are out the share price should re-value.
Two good things happened. 1. A needed cash injection which will be used towards other cash generating assets. 2. Future cash flow from OML133.
I see some positive activity on the JSE. Maybe the rationalization of the portfolio is drawing to an end. Hope we receive some good news soon. GLA