South Africa’s oil and gas explorer, SacOil Holdings has released a cautionary statement that it may cancel an agreement to complete an appraisal on a prospective oil asset in Nigeria according to a Reuters report.
SacOil said in August it had acquired 20 percent in a prospective Nigerian oil license, and later said in November it had completed research of the site.
Sacoil had reported in an announcement dated 19 August 2014, that it had received official notification of the approval by the Nigerian National Petroleum Corporation (“NNPC”) for the transfer of 20% participating interest in OPL 233 to SacOil noting that this concludes the perfection of SacOil’s title in this Prospecting Lease, OPL 233.
It is not clear if Sacoil is given up its interest in the assets as crude oil prices drop to six year lows with many oil majors cutting down on capital expenditure in 2015.
The company has previously said it would focus on more cash generative assets.
SacOil reported a 23 percent decline in profit after tax in the six months to August due to higher operating costs, according to Reuters.
