Oil and gas company SacOil will not complete a private placing of its shares following recent movements in its share price.
In a statement on Monday, the company said that it had instituted an inquiry into the cause of its share price movements and had raised concerns regarding the possible manipulation and/or short-selling of its securities, to the relevant department of the JSE.
“The company has also received confirmation from all its major shareholders that they continue to support the company and have not been divesting their interests in SacOil,” it added.
Further to the company’s admission to AIM on April 8, SacOil embarked on a number of successful initiatives, including road shows and presentations, to create awareness both locally and internationally of SacOil’s strategic objectives.
As part of the company’s growth strategy, SacOil reviewed a number of potential capital-raising opportunities to fund its current and future operations.
Global interest in a potential share offering was substantial, it said.
“However, given the present volatility in the markets, recent movements in the company’s share price, particularly on the JSE, and a concern regarding dilution from existing shareholders, the company has accordingly determined that it will not complete a private placing of shares at this time,” it added.
Chief executive Robin Vela said: “SacOil has embarked on a number of successful international roadshows to raise awareness of the company following our admission to AIM in April. Preliminary exploration at our Block III concession in the Democratic Republic of Congo is progressing well and the farm-in agreement with our partner Total provides for no further capital outlay from SacOil.”
He added that, in Nigeria, SacOil was fully funded for the next 12 months to carry out its exploration programmes at Blocks OPL 281 and OPL 233 together with its partners.
“In line with our stated growth strategies, the company continues to be presented with and evaluate a number of opportunities to acquire new value accretive acreage, which will require future capital to be raised, as and when deemed appropriate by the company and our supportive shareholders,” Vela said. — I-Net Bridge