http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.13Change: -0.40
R/$ = 11.58Change: -0.14
Au 1293.47 $/ozChange: 14.66
Pt 1263.50 $/ozChange: 15.00
 
 
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 Contact 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.
Cape Town|Engineering|Expertise|Johannesburg|London|Africa|Exploration|PROJECT|Projects|Africa|Democratic Republic Of Congo|Libya|Nigeria|Tunisia|United Kingdom|USD|Oil|Oil And Gas|Value Chain|Robin Vela|Saharan Africa
Engineering|Expertise||Africa|Exploration|PROJECT|Projects|Africa|Democratic Republic Of Congo|||Oil And Gas|||
cape-town|engineering|expertise|johannesburg|london|africa-company|exploration|project|projects|africa|democratic-republic-of-congo|libya|nigeria|tunisia|united-kingdom|usd|oil|oil-and-gas|value-chain|robin-vela|saharan-africa
© Reuse this



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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Energy News
Port of Saldanha
Updated 4 hours ago The establishment of a customs control area (CCA), or free port, within the newly designated Saldanha Bay Industrial Development Zone (SBIDZ) is being held up as a major drawcard for potential oil and gas services investors into the 330 ha site, situated alongside...
Article contains comments
Tenders are being prepared for two major oil-services infrastructure projects, collectively valued at around R10-billion, for the deep-water Port of Saldanha, on South Africa’s west coast. The developments are being packaged as build, own, operate and transfer...
Tanzania's Energy and Minerals Minister Sospeter Muhongo resigned on Saturday amid a graft scandal that has rocked the gas-rich country and led Western donors to delay aid, though he called himself "incorruptible" and denied wrongdoing. Muhongo became the third...
More
 
 
Latest News
Updated 3 hours ago Western Cape entrepreneurs had just four days before applications closed to secure cash injections of at least R10-million by pitching their business ideas to major funding bodies at the Western Cape Funding Fair – the province’s own “Dragon’s Den”. The deadline for...
INSTALLATION The system could also pinpoint an aircraft to within two nautical miles
Updated 4 hours ago National carrier South African Airways (SAA) is deploying a locally developed satellite payment system, which is also able to track the aircraft anywhere in the world, across its fleet of airliners. The system, developed by satellite authentication company SatAuth,...
Updated 4 hours ago Financial services provider Stanlib aims to channel the bulk of a R1.2-billion infrastructure equity fund into some of the infrastructure projects under way in South Africa, with a particular focus on renewable energy. Stanlib on Tuesday said the fund, which would...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
BRUCE BRADFORD The 3D printers have a clear upgrade path to eventually print in wood, ceramics and metal-alloys
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...
 
 
 
 
 
 
 
 
 
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