FirstEnergy Capital has released a Company Update on SacOil Holdings, detailing their analysis of the company's financial data and the expected impact of recent developments on SacOil's risk-profile. The report cites SacOil's Lagia oil field acquisition, its strong balance sheet and the recent title perfecture of OPL233 in Nigeria as significant factors influencing the company's greatly improved risk-profile.
Dr Thabo Kgogo, SacOil CEO expressed his satisfaction with the findings of the report, saying it is “a fair reflection of SacOil's excellent value proposition. The Lagia acquisition is just one example of our drive towards a balanced portfolio, which now offers shareholders exposure to discovered oil and long term exploration investment opportunities", he adds.
The FirstEnergy report quotes the Lagia acquisition as a potential "inflexion point in SacOil’s investment profile, signalling a momentous turnaround" towards commercial production. SacOil also has near-term production assets in Nigeria where it holds 20% equity interest in OPL 233 and is in the process of concluding and acquiring a 20% interest in OPL 281. Both OPL’s have potential for rapid monetization and are in the geographical proximity of abundant infrastructure. Other assets and exploration licenses are located in proven hydrocarbon bearing systems in Botswana, DRC and Malawi.
Earlier this year SacOil expressed an interest in the burgeoning gas sector in Mozambique and has since signed a Joint Development Agreement with IGEPE and the South African Public Investment Corporation (PIC) to evaluate the technical and commercial feasibility of a gas pipeline and gas distribution facility in Mozambique. Igepe is an agency of the Government of Mozambique established to manage investment portfolios and shares of the Republic of Mozambique in commercial ventures.
Dr Kgogo would not be drawn into speculation on how the new rating may impact the share price, but added that the increased interest in SacOil as an African oil and gas player "is the result of our on-going dedication to unlock opportunities and value for our investors." Major institutional investors include investment holding company, Encha and the South African Public Investment Corporation (PIC) - the largest asset manager on the African continent.