http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 16.93Change: -0.10
R/$ = 14.73Change: -0.12
Au 1282.10 $/ozChange: -5.15
Pt 1059.00 $/ozChange: -8.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Apr 05, 2011

SacOil to bolster executive team as it prepares for London listing

Back
SacOil CEO Robin Vela speaks on the company's plans to bolster its executive team as it prepares to list on the London exchange. Camera work: Nicholas Boyd, Editing: Darlene Creamer.
 
 
 
Expertise|Africa|Engineering|Exploration|Gas|Oil-and-gas|PROJECT|Projects|Africa|Democratic Republic Of Congo|Oil And Gas
Expertise|Africa|Engineering|Exploration|Gas|Oil-and-gas|PROJECT|Projects|Africa|Democratic Republic Of Congo|Oil And Gas
expertise|africa-company|engineering|exploration|gas|oilandgas|project|projects|africa|democratic-republic-of-congo|oil-and-gas



JSE-listed SacOil has embarked on a large-scale drive to recruit seasoned “oil and gas people” for its board and executive team, CEO Robin Vela told Engineering News Online ahead of the company’s secondary listing in London on Friday.

Vela said SacOil would bolster its board with professionals, who had experience in taking oil companies up the value chain and who could offer technical expertise.

The company would arm itself with a project execution team, including a geophysicist, geologist, reservoir engineer and commercial manager that would be based in Cape Town.

Vela described SacOil as a company with an “aggressive” acquisition drive.

The Johannesburg-based firm currently holds assets in the Democratic Republic of Congo and near-term production acreage in Nigeria.

“We will keep our focus on the western rift of sub-Saharan Africa when looking for other near-term production or production assets.

“It has been a long time since Nigeria has been seen as more stable than Tunisia or Libya, but that is now the case, and this has placed additional premium on our assets,” said Vela.

He added that the higher oil price at just over $120/bl also made the company’s current assets more valuable than when it initially acquired them.

Vela believed that these assets would retain their value even in the longer term, but said it would be somewhat more expensive to acquire more assets. “I think the days of oil trading at $70/bl are long gone, and expect oil prices to trade around $90/bl to $100/bl in the medium term.”

Meanwhile, SacOil said that the secondary listing on Aim would expose the company to a bigger pool of investors, and, therefore also a broader capital base.

“To achieve our acquisition drive, we need access to capital. SacOil has been lucky enough to be supported by a number of South African institutions to date, but feel that it would be in the interest of the company and its shareholders to expand its capital base globally,” said Vela.

He added that SacOil’s board intended to attract new UK institutional investors and raise its public profile to ensure that it remained sufficiently capitalised to further develop current exploration projects and execute near-production and producing-asset oil and gas transactions in the pipeline.

The company is expected to list with a market capitalisation of £156-million or about R1,7-billion, which according to Vele would provide it with sufficient working capital for the next 12 months after listing.

Vela further believed that the Aim listing would stabilise SacOil’s current share price, which he described as “volatile” and “undervalued”.

The company’s share price peaked last month at R2,57 a share, but was trading at R1,87 a share on Tuesday. Vela said that the volatility in share prices were not based on real fundamentals, but rather driven by emotion and JSE investors being more retail driven.

But Vela believed that the listing in London would see SacOil being evaluated against a number of its peers, which would allow a real comparable pricing for its stock.

Companies are regarded as peers in terms of their stage of development, their focus on African acreage and the fact that they are pure-play upstream entities.
 

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Energy News
While the International Monetary Fund (IMF) expects South Africa’s growth to halve to just 0.6% in 2016, growth in other oil-importing countries across sub-Saharan Africa is projected to remain relatively resilient at 5.2%. Nevertheless, the IMF is forecasting a...
Oil prices fell about 3% on Monday as production from the Organization of the Petroleum Exporting Countries (Opec) neared all-time peaks and record speculative buying in global benchmark Brent sparked profit-taking on last month's outsized rally. OPEC's crude...
The World Bank does not expect the recent rise in platinum prices to be sustained for the full year, with its latest ‘Commodity Markets Outlook’ report forecasting a 10% year-on-year price decline in 2016. The report, released on April 26, notes that precious metals...
More
 
 
Latest News
Updated 58 minutes ago Members from more than 90 hubs of the World Economic Forum’s Global Shapers community, extending from Cape Town to Cairo, are driving a campaign to ensure that all Africans can enjoy the economic and societal benefits of Internet access, the WEF said on Wednesday....
Updated 1 hour 1 minute ago Any further ratings downgrade of South Africa could lead to increased capital outflows, the South African Reserve Bank said on Tuesday. Ratings agencies have warned of possible ratings cuts should Pretoria show a lack of commitment to reining in its budget deficit.
Environmental Affairs Minister Edna Molewa
Updated 1 hour 36 minutes ago South African companies need to start planning for 2021 when they would become liable for penalties for exceeding carbon emission quotas, the environmental affairs department stressed on Tuesday. “We don’t want to be found wanting when 2020 arrives,” Minister Edna...
More
 
 
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149