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Johannesburg - In a major turnaround, SacOil Holdings [JSE:SCL], the African independent upstream oil and gas company, boosted headline earnings by 657% to R38.7m for the six months ended August 31 2011 after a headline loss of almost R7m for the previous comparable half-year.
This translated into headline earnings per share of 5.69 cents versus a loss previously of 2.21c.
Revenue grew from R16.5m to R19.3m.
CEO Robin Vela said: "The focus over the last six months has been on managing the company's exposure to the high impact exploration assets in Block III in the highly prospective Albertine Basin, whilst retaining significant potential upside for shareholders.
"Our attention has also been on procuring funding in order to de-risk and fast track the work programme obligations of our asset portfolio and progressing towards early production and revenues from our oil concession blocks, OPL 233 and OPL 281, in Nigeria.
"We successfully did this through the farm-out to Total and the recently announced standby equity distribution agreement. Combined, this puts us in a good position to fast track and develop our asset position and opportunities and we look forward to the next six months of the financial year with added confidence."
On April 8 2011 SacOil was successfully admitted to the AIM market of the London Stock Exchange. Although the company's primary listing remains on the JSE, its admission to AIM enables it to gain exposure to the European markets which have a well-developed understanding of the exploration and production industry.
"SacOil believes that it has a compelling proposition to aggressively acquire new acreage on the African continent.
"Being a purely African-based company and with extensive experience in the region, it is ideally positioned to take advantage of the opportunities that arise, as well as to fast track, develop and de-risk these assets through to early production, thereby establishing the company as a balanced portfolio independent African upstream company," Vela said.
Looking ahead, he said: "SacOil has made solid progress on a number of fronts over the last six months. With the farm-out to Total in place and the funds gained though the placing and the SEDA, the company is well positioned to be able to progress its plans in Nigeria as well as look at additional options to grow its asset portfolio.
"The focus of most oil and gas companies in Africa is on high-impact but sizable exploration assets. That leaves numerous already discovered and as such relatively de-risked smaller plays for SacOil to take advantage of.
"For a company of SacOil's size, these opportunities are not only highly commercial but also provide the potential for fast track production and revenue, which in turn creates the foundation for future step growth. "
This translated into headline earnings per share of 5.69 cents versus a loss previously of 2.21c.
Revenue grew from R16.5m to R19.3m.
CEO Robin Vela said: "The focus over the last six months has been on managing the company's exposure to the high impact exploration assets in Block III in the highly prospective Albertine Basin, whilst retaining significant potential upside for shareholders.
"Our attention has also been on procuring funding in order to de-risk and fast track the work programme obligations of our asset portfolio and progressing towards early production and revenues from our oil concession blocks, OPL 233 and OPL 281, in Nigeria.
"We successfully did this through the farm-out to Total and the recently announced standby equity distribution agreement. Combined, this puts us in a good position to fast track and develop our asset position and opportunities and we look forward to the next six months of the financial year with added confidence."
On April 8 2011 SacOil was successfully admitted to the AIM market of the London Stock Exchange. Although the company's primary listing remains on the JSE, its admission to AIM enables it to gain exposure to the European markets which have a well-developed understanding of the exploration and production industry.
"SacOil believes that it has a compelling proposition to aggressively acquire new acreage on the African continent.
"Being a purely African-based company and with extensive experience in the region, it is ideally positioned to take advantage of the opportunities that arise, as well as to fast track, develop and de-risk these assets through to early production, thereby establishing the company as a balanced portfolio independent African upstream company," Vela said.
Looking ahead, he said: "SacOil has made solid progress on a number of fronts over the last six months. With the farm-out to Total in place and the funds gained though the placing and the SEDA, the company is well positioned to be able to progress its plans in Nigeria as well as look at additional options to grow its asset portfolio.
"The focus of most oil and gas companies in Africa is on high-impact but sizable exploration assets. That leaves numerous already discovered and as such relatively de-risked smaller plays for SacOil to take advantage of.
"For a company of SacOil's size, these opportunities are not only highly commercial but also provide the potential for fast track production and revenue, which in turn creates the foundation for future step growth. "
