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Johannesburg - SacOil Holdings [JSE:SCL], the Pan African upstream oil and gas company, is to pursue a secondary listing on London's Alternative Investment Market (AIM) by the end of the first quater of 2011.
The company said Tuesday that although it has successfully raised capital by way of issues of shares for cash, its intention is to attract new institutional investors to ensure that it is sufficiently capitalised to further develop current exploration projects and execute near production and producing asset oil and gas transactions it has in the pipeline.
The South African based company has progressed on its stated strategic focus of targeting the acquisition of discovered but undeveloped or prior producing but now shut in near term producing and production assets on the African continent.
In the important Nigerian oil and gas market, SacOil has formed a joint venture with the established Nigerian oil and gas company Energy Equity Resources (EER). This gives SacOil an opportunity to pursue an initial transaction in the onshore swamp area of the Niger Delta of discovered but undeveloped oil assets with a block estimated recoverable contingent resource of 100 million barrels of oil equivalent and a peak potential production rate of up to 30 000 barrels of oil per day.
The JV partnership further benefits SacOil in that it can now acquire oil and gas assets disposed of by international oil companies as a result of Nigeria's indigenisation legislation.
In the Democratic Republic of Congo, SacOil has commenced with the exploration work programme on their Block 3 of the highly prospective Albertine Basin, with further equity investment from Metropolitan Asset Managers and Stanlib Asset Management.
SacOil CEO Robin Vela said an introduction to AIM will provide the company with a further platform to raise its public profile and afford UK investors the opportunity to participate in the future growth of the business.
"We understand the AIM market to have a bigger appetite for upstream oil and gas assets. We are successfully building SacOil into a Pan African independent upstream oil and gas company coupled with an ambitious and aggressive acquisition led growth strategy and we are well positioned to harness our foot hold into Africa. Our JV with EER is a case in point," he said.
SacOil has appointed FINNCAP Limited as its NOMAD & joint broker while Renaissance Capital will act as lead broker. Fasken Martineau LLP has been appointed as UK legal adviser to SacOil.
