Jury still out on Sacoil

Johannesburg - Oil and gas exploration company Sacoil reported a headline loss per share of 8.66c, down 199%, for the eight months to end-February.

The company reported for eight months due to a change in its tax year-end date.

Its sole operation is the manufacturing of manganese sulphate powder, manganese sulphate solution and manganese oxide at its Greenhills plant in Graskop, Mpumalanga.

Manganese sulphate is used in the fertiliser industry.

"Sale of products from the Greenhills plant increased due to an increase in export sales, as well as increased orders of manganese oxide," the company said.

Fin24.com reported in March that Sacoil was waiting for the signature of Democratic Republic of Congo President Joseph Kabila to confirm its acquisition of two oil blocks on the country's north-eastern border.

The company said: "Following meetings with the relevant authorities, the directors are confident this condition will be fulfilled by July 31 2009."

No dividend was paid out to shareholders.

Looking at information provided in the company's results, Liston Meintjes of Abercrombie Investment Managers said it was too soon to tell if it would succeed in becoming an integrated oil and gas producer. "You couldn't make an investment decision," he said.

The company's shares were trading at 25c/share on Friday, 60% lower since March.

- Fin24.com