SacOil to acquire Lagia onshore oilfield in Egypt

African independent upstream oil and gas firm SacOil has agreed to acquire the Lagia onshore oilfield on the Sinai Peninsula, Egypt.

Mena International Petroleum currently has 100% stake in the development lease for the Lagia field, covering a 32km² area on the Sinai Peninsula.

The field is under development stage with heavy oil (16°-18° API) found in shallow reservoirs and light oil potential in deeper reservoirs. Its assets include existing production facilities and oil storage for 3, 000 barrels of oil.

SacOil plans to implement a phased development programme to bring the field into production.

The first phase will feature the hydraulic stimulation of four existing wells and the work-over of one well.

The work-over will start as soon as practicable upon completion of the acquisition and will be funded from existing cash resources.

The acquisition is expected to be completed on or before 31 October 2014.

SacOil CEO Thabo Kgogo said: "The signing of a definitive agreement to acquire Mena International Petroleum Company is another significant milestone in the history of the company and endorses our short to medium-term strategy of balancing our existing exploration and appraisal portfolio with lower-risk production and development assets.

"This acquisition represents the first booked reserves for the company and through our anticipated development programme, we will be targeting a daily production rate from the Lagia oilfield of more than 1,000bpd by Q4 2015."

SacOil focuses on opportunities within hydrocarbon basins, throughout the exploration and production spectrum.

The company owns a portfolio of assets in the oil and gas industry, which includes stakes in Malawi, the DRC, Nigeria and Botswana.