To view the PDF file, sign up for a MySharenet subscription.

EFORA ENERGY LIMITED - Corporate Update

Release Date: 16/02/2018 15:42
Code(s): EEL     PDF:  
Wrap Text
Corporate Update

EFORA ENERGY LIMITED
(Formerly SacOil Holdings Limited)
Incorporated in the Republic of South Africa)
Registration number 1993/000460/06)
JSE Share Code: EEL
ISIN:   ZAE000248258
(“Efora” or “the Company”)

CORPORATE UPDATE

Efora Energy Limited, the South African based independent oil
and gas company, provides the following corporate update.

Further to the announcement issued on Thursday 15 February
regarding the resignation of EY as Efora’s external auditor,
the Board wishes to highlight the following points. The
Company is in advanced talks with regards to the appointment
of a credible auditor who has conducted significant due
diligence on the Company and its financial affairs. In
response to EY’s stated reasons for resignation, the
management emphasise that the history of Going Concern has
been well flagged in Efora’s financial reporting and the
situation remains the same as last disclosed to shareholders
in the Interim Results dated 30 November 2017, insofar as the
Company needs to undertake a rights issue by May 2018. The
Board remains confident that the Company will obtain the
required support from its key shareholders to enable that
process, at which point the Company will be on a firm
financial footing.

With regards to the reportable irregularities at Afric Oil
cited by EY, these activities occurred prior to Efora’s
acquisition of a non-operated interest in Afric Oil and only
came to light following completion of that acquisition. Since
that time, in its capacity as majority shareholder of Afric
Oil, Efora has implemented a number of initiatives to ensure
the irregularities ceased, is satisfied that the situation has
been appropriately addressed, and that strict accounting
measures are now in place at Afric Oil to prevent such
irregularities occurring in the future. Initiatives
implemented by Efora include the Group’s internal auditor
including Afric Oil in its internal review process and, as
part of the previously mentioned integration process,
additional external financial resources were appointed to
focus on the internal control and reporting environment at
Afric Oil and the introduction of appropriate processes and
systems to maintain effective financial management going
forward. Other measures introduced by Efora included the
appointment of a new and credible executive management team at
Afric Oil who, as reported in the operational update issued in
mid-January 2018, are making considerable progress in
improving the financial, operational and corporate performance
of that business.

As referenced in Efora’s SENS announcement released on 15
February 2018, EY was Afric Oil’s appointed external auditor,
and the firm duly advised the Audit Committee of Afric Oil in
October 2017 that all reportable irregularities were resolved.

Commenting on the update, CEO Dr Thabo Kgogo, said:

“Efora’s management team has always made governance and
financial discipline its primary focus. For the avoidance of
doubt with regards to EY’s decision to resign as our external
auditor, there is absolutely no indication of any wrong doing
by the Board of Efora. The claims of irregularities relate to
our non-operated subsidiary and occurred prior to the
acquisition of our majority interest in the company.
Furthermore, we have overseen the necessary changes to amend
these irregularities, as verified by EY themselves in October
2017 when they advised Afric Oil’s Audit Committee the issues
had been duly resolved. We fully acknowledge why shareholders
would have concerns over the going concern issues, however we
have disclosed these transparently in our financial reporting
and are confident that these will be fully resolved in the
coming months as we undertake a successful rights issue. We
are in progressive discussions with our key shareholders on
this matter, and we look forward to updating our shareholders
in due course.”

Sponsor
PSG Capital Proprietary Limited

16 February 2018

For further information please contact:

Efora Energy Limited
Damain Matroos
+27 (0)10 591 2260

Buchanan (Financial PR adviser)
Ben Romney / Chris Judd
+44 (0)20 7466 5000

About Efora
Efora Energy Limited is a South African based independent
African oil and gas company, listed on the JSE. The Company
has a diverse portfolio of assets spanning production in
Egypt; exploration and appraisal in the Democratic Republic of
Congo; midstream project relating to crude trading in Nigeria
and material downstream distribution operations throughout
Southern Africa. Our focus as a Group is on delivering energy
for the African continent by using Africa’s own resources to
meet the significant growth in demand expected over the next
decade.

Date: 16/02/2018 03:42:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story