SacOil: 3D seismic project to start offshore Nigeria

SacOil, the South African based independent African oil and gas company, reports that a 3D Seismic Data Acquisition project contractor has begun mobilization process in OPL 233 block, offshore Nigeria.

In preparation for the scheduled 3D Seismic Data Acquisition project, the Environmental Impact Assessment (“EIA”) on the block, handled by Tidalflow Nigeria Limited, has been completed with both wet and dry season sampling carried out.

While the wet season sampling has been completed and the result approved by the Department of Petroleum Resources (“DPR”), the dry season sampling is presently undergoing processing before being forwarded to the DPR. The Federal Ministry of Environment has also carried out the required site verification and EIA registration processes. The final report on the Seabed Hazard Survey by Epanoe Nigeria Limited has been delivered to, and accepted by the Joint Venture Partners as well as the field’s seismic data acquisition contractor, Geomarine Systems Limited, following successful completion of the work.

SacOil and its OPL 233 partners have started operations for the 3D Seismic Ocean Bottom Cable (OBC) survey, with mobilization of equipment for the survey in progress.

The timeline envisages full mobilization to the site to be completed by the end of March 2014. To this extent, various equipment including the requisite gun boats and seismic recording cables have been delivered, whilst navigation equipment and seismic sensors are being air-freighted to compress the lead time to actual recording of data. Following mobilization, the 3D OBC acquisition work is expected to commence early April 2014 and be completed by the end of July 2014, subject to operational contingencies and weather related issues. Finalisation of formalities for the seismic data processing contract is ongoing.

The 3D seismic data will provide valuable subsurface information relevant for the quantification of the licence’s resource potential, as well as the selection of an optimal drilling location. The Company expects the processing of the raw data and interpretation of results to be completed by Q3, 2014. SacOil holds a 20% interest in OPL 233.

[mappress]

March 10, 2014